LGI Homes (NASDAQ:LGIH) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded LGI Homes from “hold” to “sell,” while the broader analyst consensus remains “Hold” with a $72.75 price target.
• LGI Homes exceeded quarterly expectations, reporting $1.16 in EPS versus the $0.98 consensus estimate and $516.05 million in revenue, up 6.7% year over year.
• The stock opened at $60.04, with a $1.40 billion market capitalization; institutional investors and hedge funds own approximately 84.89% of outstanding shares.

LGI Homes (NASDAQ:LGIH - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

LGIH has been the subject of several other research reports. JPMorgan Chase & Co. raised their target price on LGI Homes from $38.00 to $41.00 and gave the stock an "underweight" rating in a research report on Thursday, April 30th. Zacks Research upgraded LGI Homes from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 21st. Finally, Weiss Ratings upgraded LGI Homes from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, LGI Homes has a consensus rating of "Hold" and a consensus price target of $72.75.

LGI Homes Stock Performance

LGI Homes stock opened at $60.04 on Friday. The company has a debt-to-equity ratio of 0.74, a current ratio of 17.74 and a quick ratio of 0.70. The company has a market cap of $1.40 billion, a P/E ratio of 21.07 and a beta of 1.83. LGI Homes has a fifty-two week low of $33.55 and a fifty-two week high of $69.50. The firm's 50 day simple moving average is $57.34 and its 200-day simple moving average is $50.43.

LGI Homes (NASDAQ:LGIH - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $1.16 EPS for the quarter, topping analysts' consensus estimates of $0.98 by $0.18. LGI Homes had a net margin of 3.88% and a return on equity of 3.55%. The firm had revenue of $516.05 million during the quarter, compared to analyst estimates of $489.23 million. During the same quarter last year, the business posted $1.36 EPS. The company's revenue was up 6.7% on a year-over-year basis.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd lifted its stake in shares of 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 during the last quarter. Los Angeles Capital Management LLC bought a new stake in LGI Homes in the fourth quarter worth $29,000. Russell Investments Group Ltd. increased 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 buying an additional 305 shares during the last quarter. Kemnay Advisory Services Inc. acquired a new position in LGI Homes during the fourth quarter worth $32,000. Finally, Rockefeller Capital Management L.P. increased its position in LGI Homes by 1,759.6% during the fourth 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 during the last quarter. Institutional investors and hedge funds own 84.89% of the company's stock.

LGI Homes Company Profile

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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