LGI Homes (NASDAQ:LGIH) Stock Passes Below 200-Day Moving Average - Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s share price crossed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $70.86 and traded as low as $48.54. LGI Homes shares last traded at $50.29, with a volume of 329,701 shares traded.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Wedbush cut their price target on LGI Homes from $100.00 to $93.00 and set a "neutral" rating on the stock in a research note on Thursday, June 5th. JMP Securities reiterated a "market outperform" rating and issued a $140.00 price target on shares of LGI Homes in a research report on Wednesday, April 30th.

LGI Homes Trading Down 0.1%

The company has a quick ratio of 0.54, a current ratio of 16.58 and a debt-to-equity ratio of 0.80. The stock has a market capitalization of $1.21 billion, a price-to-earnings ratio of 6.65 and a beta of 1.78. The company has a fifty day moving average of $53.19 and a two-hundred day moving average of $69.69.

LGI Homes (NASDAQ:LGIH - Get Free Report) last released its earnings results on Tuesday, April 29th. The financial services provider reported $0.46 EPS for the quarter, missing the consensus estimate of $0.75 by ($0.29). LGI Homes had a return on equity of 9.49% and a net margin of 8.46%. The firm had revenue of $351.42 million during the quarter, compared to analyst estimates of $380.07 million. During the same quarter last year, the business posted $0.72 EPS. The firm's revenue was down 10.1% on a year-over-year basis. On average, research analysts expect that LGI Homes, Inc. will post 8.46 EPS for the current year.

Hedge Funds Weigh In On LGI Homes

Several institutional investors and hedge funds have recently added to or reduced their stakes in LGIH. Vanguard Group Inc. raised its position in LGI Homes by 2.4% in the fourth quarter. Vanguard Group Inc. now owns 2,274,907 shares of the financial services provider's stock worth $203,377,000 after acquiring an additional 54,039 shares in the last quarter. Northern Trust Corp boosted its stake in shares of LGI Homes by 11.5% during the 4th quarter. Northern Trust Corp now owns 219,547 shares of the financial services provider's stock worth $19,628,000 after acquiring an additional 22,615 shares in the last quarter. River Road Asset Management LLC increased its stake in LGI Homes by 30.6% in the 4th quarter. River Road Asset Management LLC now owns 907,923 shares of the financial services provider's stock valued at $81,168,000 after purchasing an additional 212,468 shares in the last quarter. Raymond James Financial Inc. acquired a new position in LGI Homes during the fourth quarter worth $15,507,000. Finally, Squarepoint Ops LLC purchased a new position in shares of LGI Homes in the fourth quarter valued at $3,227,000. Institutional investors and hedge funds own 84.89% of the company's stock.

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.