LGI Homes (NASDAQ:LGIH) Shares Up 9.1% Following Strong Earnings

Key Points

• LGI Homes shares rose by 9.1% after the company reported quarterly earnings of $1.36 EPS, surpassing expectations by $0.02, despite a 19.8% decrease in revenue year-over-year.
• Analysts have diverse views on LGI Homes, with JMP Securities setting a target price of $140, while JPMorgan Chase downgraded its target to $47, reflecting varying confidence among investors.
• Institutional investors significantly increased their stakes in LGI Homes, with MassMutual Private Wealth increasing its position by 453.1% during the second quarter, highlighting growing institutional interest.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s share price shot up 9.1% on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $59.42 and last traded at $59.59. 90,941 shares traded hands during trading, a decline of 71% from the average session volume of 319,039 shares. The stock had previously closed at $54.64.

The financial services provider reported $1.36 EPS for the quarter, topping the consensus estimate of $1.34 by $0.02. LGI Homes had a return on equity of 9.49% and a net margin of 8.46%. During the same quarter last year, the firm posted $2.48 EPS. The business's revenue was down 19.8% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several research firms have recently commented on LGIH. JMP Securities reiterated a "market outperform" rating and set a $140.00 price target on shares of LGI Homes in a report on Wednesday, April 30th. Wedbush reissued a "neutral" rating and set a $93.00 price objective on shares of LGI Homes in a research report on Monday, July 7th. Finally, JPMorgan Chase & Co. cut their price objective on LGI Homes from $52.00 to $47.00 and set an "underweight" rating for the company in a research report on Wednesday, July 9th.

Institutional Trading of LGI Homes

A number of hedge funds and other institutional investors have recently modified their holdings of LGIH. MassMutual Private Wealth & Trust FSB increased its position in shares of LGI Homes by 453.1% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 531 shares of the financial services provider's stock worth $27,000 after purchasing an additional 435 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its position in LGI Homes by 12,620.0% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 636 shares of the financial services provider's stock valued at $42,000 after acquiring an additional 631 shares in the last quarter. Signaturefd LLC grew its position in LGI Homes by 284.4% in the 2nd quarter. Signaturefd LLC now owns 815 shares of the financial services provider's stock valued at $42,000 after acquiring an additional 603 shares in the last quarter. Sterling Capital Management LLC grew its position in LGI Homes by 801.5% in the 4th quarter. Sterling Capital Management LLC now owns 613 shares of the financial services provider's stock valued at $55,000 after acquiring an additional 545 shares in the last quarter. Finally, GAMMA Investing LLC grew its position in LGI Homes by 219.1% in the 1st quarter. GAMMA Investing LLC now owns 887 shares of the financial services provider's stock valued at $59,000 after acquiring an additional 609 shares in the last quarter. 84.89% of the stock is owned by institutional investors and hedge funds.

LGI Homes Stock Performance

The company has a market capitalization of $1.39 billion, a price-to-earnings ratio of 7.66 and a beta of 1.69. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.54 and a current ratio of 16.58. The firm has a 50-day simple moving average of $52.54 and a two-hundred day simple moving average of $63.59.

LGI Homes Company Profile

LGI Homes, Inc designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to large institutions looking to acquire single-family rental properties.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.