LGI Homes (NASDAQ:LGIH) Stock Price Down 7% - What's Next?

Key Points

• LGI Homes shares fell 7% on Monday to about $41.27 (intraday low $41.09) on lighter volume—194,097 shares traded, roughly 50% below the average session volume.
• Analysts are mixed: MarketBeat shows a consensus "Hold" with a $74.63 target (two Buys, one Hold, two Sells), though firms like Citizens Jmp and Citigroup maintain outperform/Buy views.
• LGI's latest quarter delivered $0.97 EPS (a $0.01 beat) while revenue was down 15% year-over-year; the company has about a $970M market cap, a P/E of 13.39, and roughly 84.9% institutional ownership.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) traded down 7% on Monday . The stock traded as low as $41.09 and last traded at $41.27. 194,097 shares traded hands during trading, a decline of 50% from the average session volume of 386,006 shares. The stock had previously closed at $44.40.

Analyst Ratings Changes

Several brokerages have recently weighed in on LGIH. Citizens Jmp lifted their price target on shares of LGI Homes from $85.00 to $95.00 and gave the stock a "market outperform" rating in a research note on Wednesday, January 7th. Citigroup reiterated an "outperform" rating on shares of LGI Homes in a research report on Wednesday, January 7th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of LGI Homes in a report on Monday, December 29th. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $74.63.

LGI Homes Price Performance

The firm has a market cap of $970.19 million, a P/E ratio of 13.39 and a beta of 1.88. The company has a debt-to-equity ratio of 0.79, a current ratio of 20.98 and a quick ratio of 0.76. The stock's 50-day simple moving average is $51.81 and its two-hundred day simple moving average is $51.38.

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

Hedge Funds Weigh In On LGI Homes

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd boosted 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 worth $28,000 after buying an additional 237 shares during the last quarter. Versant Capital Management Inc lifted its holdings in LGI Homes by 35.1% in the third quarter. Versant Capital Management Inc now owns 947 shares of the financial services provider's stock valued at $49,000 after acquiring an additional 246 shares during the period. PNC Financial Services Group Inc. boosted its position in LGI Homes by 4.8% in the 2nd quarter. PNC Financial Services Group Inc. now owns 5,976 shares of the financial services provider's stock worth $308,000 after purchasing an additional 275 shares in the last quarter. Illinois Municipal Retirement Fund boosted its position in LGI Homes by 2.6% in the 3rd quarter. Illinois Municipal Retirement Fund now owns 10,970 shares of the financial services provider's stock worth $567,000 after purchasing an additional 275 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its stake in shares of LGI Homes by 106.6% during the 2nd quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider's stock worth $30,000 after purchasing an additional 305 shares during the period. Hedge funds and other institutional investors 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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