LGI Homes (NASDAQ:LGIH) Stock Passes Above 50-Day Moving Average - What's Next?

Key Points

• LGI Homes stock rose 2.9% and crossed above its 50-day moving average, trading as high as $62.00 and last changing hands at $61.04.
• Analyst sentiment remains mixed: the stock has a consensus rating of Hold with an average target price of $72.75, while recent notes included downgrades and a JPMorgan target increase to $41.
• The company recently reported earnings of $0.24 per share, beating estimates, but quarterly revenue of $319.74 million came in below expectations and was down 9.0% year over year.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Thursday . The stock has a 50 day moving average of $53.12 and traded as high as $62.00. LGI Homes shares last traded at $61.04, with a volume of 213,936 shares.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on LGIH. Weiss Ratings reiterated a "sell (d)" rating on shares of LGI Homes in a report on Friday, May 22nd. Zacks Research upgraded LGI Homes from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 21st. Wall Street Zen raised shares of LGI Homes from a "sell" rating to a "hold" rating in a report on Saturday, June 6th. Finally, JPMorgan Chase & Co. boosted their target price on shares of LGI Homes from $38.00 to $41.00 and gave the company an "underweight" rating in a research note on Thursday, April 30th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $72.75.

LGI Homes Stock Up 2.9%

The firm has a market cap of $1.42 billion, a price-to-earnings ratio of 20.01 and a beta of 1.82. The stock has a 50-day moving average of $53.12 and a 200-day moving average of $49.20. The company has a current ratio of 18.56, a quick ratio of 0.70 and a debt-to-equity ratio of 0.81.

LGI Homes (NASDAQ:LGIH - Get Free Report) last issued its earnings results on Tuesday, April 28th. The financial services provider reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.22. LGI Homes had a return on equity of 3.80% and a net margin of 4.22%.The firm had revenue of $319.74 million for the quarter, compared to analyst estimates of $328.22 million. During the same period last year, the company earned $0.17 earnings per share. The firm's revenue for the quarter was down 9.0% on a year-over-year basis.

Institutional Trading of LGI Homes

Large investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd increased its stake in shares of LGI Homes by 75.5% in the third 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 during the period. Russell Investments Group Ltd. boosted its position in shares of 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 buying an additional 305 shares during the period. Los Angeles Capital Management LLC acquired a new position in shares of LGI Homes during the fourth quarter worth approximately $29,000. Kemnay Advisory Services Inc. bought a new position in LGI Homes in the 4th quarter worth approximately $32,000. Finally, Rockefeller Capital Management L.P. grew 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 worth $38,000 after buying an additional 827 shares in the last quarter. Institutional investors and hedge funds own 84.89% of the company's stock.

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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