LGI Homes (NASDAQ:LGIH) Trading Down 6.7% - Should You Sell?

Key Points

• LGI Homes shares fell 6.7% to $55.99 in Monday trading, with volume down 92% from the average session.
• Analysts remain mixed, with two Buy, two Hold, and two Sell ratings; the consensus rating is Hold, with an average price target of $72.75.
• The company exceeded quarterly expectations, reporting $1.16 in EPS versus the $0.98 estimate and $516.05 million in revenue, up 6.7% year over year.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) shares fell 6.7% on Monday . The company traded as low as $56.43 and last traded at $55.99. 34,465 shares were traded during mid-day trading, a decline of 92% from the average session volume of 427,797 shares. The stock had previously closed at $60.04.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on LGIH. JPMorgan Chase & Co. lifted their price objective on shares of 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 note on Tuesday, April 21st. Wall Street Zen downgraded LGI Homes from a "hold" rating to a "sell" rating in a report on Saturday. Finally, Weiss Ratings raised LGI Homes from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday. Two equities research 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's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $72.75.

LGI Homes Price Performance

The company has a market capitalization of $1.31 billion, a PE ratio of 19.81 and a beta of 1.83. The company has a debt-to-equity ratio of 0.74, a current ratio of 17.74 and a quick ratio of 0.61. The company's 50 day simple moving average is $57.34 and its 200 day simple moving average is $50.41.

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

Institutional Investors Weigh In On LGI Homes

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd boosted its stake in 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 acquiring an additional 237 shares in the last quarter. Russell Investments Group Ltd. lifted its holdings in shares of LGI Homes by 106.6% in the 2nd quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 305 shares during the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of LGI Homes in the 4th quarter valued at about $29,000. Kemnay Advisory Services Inc. acquired a new stake in shares of LGI Homes in the 4th quarter valued at about $32,000. Finally, Rockefeller Capital Management L.P. boosted its position in shares of 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 valued at $38,000 after purchasing an additional 827 shares during the period. 84.89% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source