LGI Homes (NASDAQ:LGIH) Trading 9% Higher - Here's What Happened

Key Points

• LGI Homes' stock price increased by 9% to $66.96 during trading, despite a decline in trading volume compared to its average.
• Analyst ratings reveal a mixed outlook, with one sell rating, two hold ratings, and two buy ratings, giving the stock a consensus rating of "Hold" and a target price of $71.67.
• In its recent earnings report, LGI Homes beat EPS estimates at $1.36 but reported a 19.8% decline in quarterly revenue compared to the previous year.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s stock price rose 9% during trading on Wednesday . The company traded as high as $66.70 and last traded at $66.96. Approximately 263,262 shares were traded during mid-day trading, a decline of 19% from the average daily volume of 324,746 shares. The stock had previously closed at $61.43.

Analyst Ratings Changes

LGIH has been the topic of a number of research reports. Wedbush restated a "neutral" rating and issued a $93.00 price objective on shares of LGI Homes in a report on Monday, July 7th. JMP Securities set a $75.00 price target on LGI Homes and gave the company a "market outperform" rating in a report on Thursday, August 7th. JPMorgan Chase & Co. lowered their price target on LGI Homes from $52.00 to $47.00 and set an "underweight" rating on the stock in a report on Wednesday, July 9th. Finally, Citigroup reissued an "outperform" rating on shares of LGI Homes in a research report on Thursday, August 7th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and two have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $71.67.

LGI Homes Stock Performance

The stock has a market capitalization of $1.54 billion, a P/E ratio of 10.08 and a beta of 1.69. The firm has a 50-day moving average of $53.46 and a 200 day moving average of $62.38. The company has a quick ratio of 0.64, a current ratio of 18.18 and a debt-to-equity ratio of 0.85.

LGI Homes (NASDAQ:LGIH - Get Free Report) last announced its earnings results on Tuesday, August 5th. The financial services provider reported $1.36 earnings per share for the quarter, beating analysts' consensus estimates of $1.21 by $0.15. The company had revenue of $483.49 million during the quarter, compared to analyst estimates of $546.96 million. LGI Homes had a return on equity of 8.00% and a net margin of 7.63%. The firm's quarterly revenue was down 19.8% compared to the same quarter last year. During the same period last year, the company posted $2.48 earnings per share. Research analysts anticipate that LGI Homes, Inc. will post 8.46 EPS for the current fiscal year.

Institutional Investors Weigh In On LGI Homes

Institutional investors have recently bought and sold shares of the company. LPL Financial LLC increased its position in shares of LGI Homes by 5.0% during the 4th quarter. LPL Financial LLC now owns 11,399 shares of the financial services provider's stock worth $1,019,000 after purchasing an additional 546 shares during the last quarter. Wells Fargo & Company MN increased its position in shares of LGI Homes by 7.7% during the 4th quarter. Wells Fargo & Company MN now owns 28,320 shares of the financial services provider's stock worth $2,532,000 after purchasing an additional 2,013 shares during the last quarter. Invesco Ltd. increased its position in shares of LGI Homes by 30.2% during the 4th quarter. Invesco Ltd. now owns 65,168 shares of the financial services provider's stock worth $5,826,000 after purchasing an additional 15,098 shares during the last quarter. Raymond James Financial Inc. acquired a new position in shares of LGI Homes during the 4th quarter worth approximately $15,507,000. Finally, Capital Fund Management S.A. acquired a new position in shares of LGI Homes during the 4th quarter worth approximately $2,717,000. Institutional investors own 84.89% of the company's stock.

About LGI Homes

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.

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