LGI Homes (NASDAQ:LGIH) Shares Up 9% - Here's Why

Key Points

• LGI Homes shares jumped about 9% intraday to roughly $42.71 on Friday (prior close $39.20), though volume was thin at ~67,407 shares — about an 85% drop from average daily volume.
• Analyst sentiment is mixed: two Buys, one Hold and two Sells result in a MarketBeat consensus rating of Hold with a consensus price target of $74.63, while broker notes range from Weiss Ratings' "sell" to Citi and Citizens Jmp reiterating/raising outperform views.
• The company reported Q results with EPS $0.97, beating by $0.01 but revenue fell 15% year-over-year and missed estimates; insiders have been net sellers (22,451 shares sold in the past 90 days) even as institutional investors own roughly 85% of the stock.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s stock price rose 9% during mid-day trading on Friday . The company traded as high as $41.67 and last traded at $42.7130. Approximately 67,407 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 454,225 shares. The stock had previously closed at $39.20.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on LGIH. Weiss Ratings reaffirmed a "sell (d)" rating on shares of LGI Homes in a research note on Monday, December 29th. Citizens Jmp lifted their price objective on shares of LGI Homes from $85.00 to $95.00 and gave the company a "market outperform" rating in a report on Wednesday, January 7th. Finally, Citigroup reiterated an "outperform" rating on shares of LGI Homes in a research report on Wednesday, January 7th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $74.63.

LGI Homes Price Performance

The firm has a market capitalization of $998.65 million, a PE ratio of 13.79 and a beta of 1.86. The stock has a 50-day moving average price of $45.59 and a 200 day moving average price of $47.22. The company has a quick ratio of 0.76, a current ratio of 20.98 and a debt-to-equity ratio of 0.79.

LGI Homes (NASDAQ:LGIH - Get Free Report) last announced its earnings results on Tuesday, February 17th. The financial services provider reported $0.97 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.01. The firm had revenue of $473.97 million for the quarter, compared to analyst estimates of $479.60 million. LGI Homes had a return on equity of 4.08% and a net margin of 4.25%.The business's revenue was down 15.0% on a year-over-year basis. During the same quarter last year, the firm posted $2.15 EPS. Equities analysts forecast that LGI Homes, Inc. will post 8.46 EPS for the current fiscal year.

Insider Buying and Selling at LGI Homes

In other news, CFO Charles Michael Merdian sold 7,211 shares of LGI Homes stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $42.04, for a total value of $303,150.44. Following the sale, the chief financial officer owned 20,540 shares in the company, valued at $863,501.60. This trade represents a 25.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Michael Larry Snider sold 7,887 shares of the company's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $42.04, for a total transaction of $331,569.48. Following the transaction, the chief operating officer owned 30,517 shares of the company's stock, valued at approximately $1,282,934.68. This trade represents a 20.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 22,451 shares of company stock valued at $943,840 over the last ninety days. Corporate insiders own 12.60% of the company's stock.

Institutional Trading of LGI Homes

A number of institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd lifted its holdings in LGI Homes by 75.5% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider's stock valued at $28,000 after purchasing an additional 237 shares in the last quarter. Los Angeles Capital Management LLC purchased a new position in shares of LGI Homes in the fourth quarter worth about $29,000. Russell Investments Group Ltd. boosted its position in LGI Homes by 106.6% during the second quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider's stock worth $30,000 after acquiring an additional 305 shares during the last quarter. Kemnay Advisory Services Inc. purchased a new stake in LGI Homes during the 4th quarter valued at about $32,000. Finally, Rockefeller Capital Management L.P. raised its holdings in LGI Homes by 1,759.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 874 shares of the financial services provider's stock valued at $38,000 after acquiring an additional 827 shares during the last quarter. 84.89% of the stock is owned by institutional investors and hedge funds.

About LGI Homes

LGI Homes, Inc NASDAQ: LGIH is a residential homebuilder primarily focused on serving first-time and first-time move-up homebuyers in the United States. The company specializes in the acquisition, development and sale of affordable single-family homes and townhomes. LGI Homes operates through an integrated model that encompasses land sourcing, lot development, home construction, and post-closing customer support including warranty services.

In addition to its core homebuilding activities, LGI Homes offers ancillary services to streamline the homebuying process for its customers.

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