LGI Homes (NASDAQ:LGIH) Trading Down 6.7% - Time to Sell?

Key Points

• Shares dropped ~6.7% intraday to about $36.24 with only ~56,200 shares traded (roughly an 88% decline vs. average volume), after a prior close of $38.85.
• Analysts are mixed—MarketBeat shows an average rating of Hold and a $74.63 target—while LGI slightly beat quarterly EPS ($0.97 vs. $0.96) but reported revenue down 15% year‑over‑year to $473.97 million.
• Company insiders have been selling recently (22,451 shares worth ~$943,840 sold last quarter, including notable sales by the COO and general counsel), while institutional investors own ~84.9% of the stock and insiders hold ~12.6%.

Shares of LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) traded down 6.7% during mid-day trading on Tuesday . The company traded as low as $37.00 and last traded at $36.2440. 56,202 shares were traded during mid-day trading, a decline of 88% from the average session volume of 464,035 shares. The stock had previously closed at $38.85.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the company. Citigroup reaffirmed an "outperform" rating on shares of LGI Homes in a research note on Wednesday, January 7th. Citizens Jmp upped their target price on LGI Homes from $85.00 to $95.00 and gave the company a "market outperform" rating in a research note on Wednesday, January 7th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of LGI Homes in a research note on Monday, December 29th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $74.63.

LGI Homes Trading Down 5.1%

The company has a market cap of $853.03 million, a PE ratio of 11.76 and a beta of 1.86. The business has a 50 day simple moving average of $47.71 and a two-hundred day simple moving average of $47.94. The company has a current ratio of 20.98, a quick ratio of 0.76 and a debt-to-equity ratio of 0.79.

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

Insiders Place Their Bets

In other LGI Homes news, COO Michael Larry Snider sold 7,887 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $42.04, for a total transaction of $331,569.48. Following the transaction, the chief operating officer owned 30,517 shares of the company's stock, valued at $1,282,934.68. This represents a 20.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, General Counsel Scott James Garber sold 1,353 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $42.04, for a total value of $56,880.12. Following the transaction, the general counsel directly owned 21,716 shares in the company, valued at approximately $912,940.64. This represents a 5.87% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 22,451 shares of company stock valued at $943,840 in the last quarter. 12.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Wasatch Advisors LP raised its position in shares of LGI Homes by 3.4% in the 2nd quarter. Wasatch Advisors LP now owns 1,467,855 shares of the financial services provider's stock worth $75,624,000 after buying an additional 48,795 shares during the period. River Road Asset Management LLC raised its position in shares of LGI Homes by 2.0% in the 4th quarter. River Road Asset Management LLC now owns 931,391 shares of the financial services provider's stock worth $40,013,000 after buying an additional 18,682 shares during the period. CDAM UK Ltd raised its position in shares of LGI Homes by 15.4% in the 4th quarter. CDAM UK Ltd now owns 743,153 shares of the financial services provider's stock worth $31,926,000 after buying an additional 99,090 shares during the period. Charles Schwab Investment Management Inc. raised its position in shares of LGI Homes by 6.9% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 458,601 shares of the financial services provider's stock worth $19,701,000 after buying an additional 29,542 shares during the period. Finally, Tributary Capital Management LLC raised its position in shares of LGI Homes by 93.1% in the 3rd quarter. Tributary Capital Management LLC now owns 386,072 shares of the financial services provider's stock worth $19,964,000 after buying an additional 186,159 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.

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