LGI Homes (NASDAQ:LGIH) Upgraded by Wall Street Zen to Sell Rating

Key Points

• Wall Street Zen moved LGI Homes from a "strong sell" to a "sell" rating, while the wider analyst mix is split (2 Buy / 2 Hold / 2 Sell) and the consensus rating remains a Hold with a $72.75 price target.
• LGI Homes beat quarterly EPS expectations ($0.24 vs. $0.02) but revenue fell 9% year‑over‑year to $319.7M, slightly below estimates, and analysts forecast 2.45 EPS for the current year.
• Insiders—including the CFO and general counsel—sold shares in March, totaling 22,451 shares (about $943,840) over the last quarter, though insiders still own 12.6% of the company.

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

A number of other equities analysts have also recently weighed in on LGIH. Citigroup reaffirmed an "outperform" rating on shares of LGI Homes in a research report on Wednesday, January 7th. JPMorgan Chase & Co. upped their price target on LGI Homes from $38.00 to $41.00 and gave the stock an "underweight" rating in a research note on Thursday. Citizens Jmp raised their price target on LGI Homes from $85.00 to $95.00 and gave the stock a "market outperform" rating in a research report on Wednesday, January 7th. Finally, Zacks Research raised LGI Homes from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 21st. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $72.75.

LGI Homes Stock Performance

NASDAQ:LGIH opened at $48.53 on Friday. The firm has a market capitalization of $1.12 billion, a price-to-earnings ratio of 15.91 and a beta of 1.86. The company has a debt-to-equity ratio of 0.81, a current ratio of 18.56 and a quick ratio of 0.76. The company's 50-day moving average is $43.10 and its two-hundred day moving average is $46.98. LGI Homes has a 1-year low of $33.55 and a 1-year high of $69.50.

LGI Homes (NASDAQ:LGIH - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.22. LGI Homes had a net margin of 4.22% and a return on equity of 3.80%. The firm had revenue of $319.74 million for the quarter, compared to analyst estimates of $328.22 million. During the same period in the previous year, the firm earned $0.17 EPS. LGI Homes's revenue was down 9.0% on a year-over-year basis. Analysts forecast that LGI Homes will post 2.45 EPS for the current year.

Insider Activity at LGI Homes

In related news, CFO Charles Michael Merdian sold 7,211 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $42.04, for a total transaction of $303,150.44. Following the sale, the chief financial officer directly owned 20,540 shares of the company's stock, valued at $863,501.60. This represents a 25.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel Scott James Garber sold 1,353 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $42.04, for a total transaction of $56,880.12. Following the sale, the general counsel owned 21,716 shares in the company, valued at approximately $912,940.64. This trade represents a 5.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 22,451 shares of company stock worth $943,840. Corporate insiders own 12.60% of the company's stock.

Institutional Trading of LGI Homes

Hedge funds have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd grew its stake in LGI Homes by 75.5% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider's stock worth $28,000 after purchasing an additional 237 shares in the last quarter. Los Angeles Capital Management LLC acquired a new stake in LGI Homes in the 4th quarter valued at about $29,000. Russell Investments Group Ltd. boosted its stake 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 buying an additional 305 shares during the period. Kemnay Advisory Services Inc. purchased a new position in shares of LGI Homes in the 4th quarter valued at about $32,000. Finally, Rockefeller Capital Management L.P. grew its position in shares of 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 in the last quarter. 84.89% of the stock is currently owned by institutional investors and hedge funds.

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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