LGI Homes (NASDAQ:LGIH) Upgraded to Hold at Zacks Research

Key Points

• Zacks Research upgraded LGI Homes from a "strong sell" to a "hold"; overall analyst coverage is mixed (2 Buy / 2 Hold / 2 Sell) with a consensus target price of $74.63.
• LGI reported Q results showing EPS of $0.97 (beat by $0.01) but revenue of $473.97M missed estimates and was down about 15% year-over-year; the stock trades near $46.64 with a market cap of roughly $1.08B.
• Company insiders have been net sellers recently (COO and CFO each sold shares, reducing their stakes ~20–26%; 22,451 insider shares sold over three months), while institutional ownership remains high at ~84.9%.

LGI Homes (NASDAQ:LGIH - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

Several other analysts also recently weighed in on LGIH. Citizens Jmp upped their price objective 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. Citigroup restated an "outperform" rating on shares of LGI Homes in a research report on Wednesday, January 7th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of LGI Homes in a research report on Monday, December 29th. Two 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. Based on data from MarketBeat, LGI Homes currently has an average rating of "Hold" and a consensus target price of $74.63.

LGI Homes Price Performance

Shares of LGIH stock opened at $46.64 on Tuesday. The company has a quick ratio of 0.76, a current ratio of 20.98 and a debt-to-equity ratio of 0.79. LGI Homes has a twelve month low of $33.55 and a twelve month high of $69.50. The company has a market cap of $1.08 billion, a P/E ratio of 14.90 and a beta of 1.86. The business has a fifty day simple moving average of $44.42 and a 200 day simple moving average of $46.98.

LGI Homes (NASDAQ:LGIH - Get Free Report) last announced its quarterly earnings data on Tuesday, February 17th. The financial services provider reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.01. LGI Homes had a return on equity of 4.08% and a net margin of 4.25%.The business had revenue of $473.97 million during the quarter, compared to the consensus estimate of $479.60 million. During the same period in the prior year, the company earned $2.15 EPS. LGI Homes's revenue for the quarter was down 15.0% on a year-over-year basis. On average, sell-side analysts forecast that LGI Homes will post 2.45 EPS for the current fiscal year.

Insider Buying and Selling at LGI Homes

In other LGI Homes news, COO Michael Larry Snider sold 7,887 shares of the stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $42.04, for a total value of $331,569.48. Following the completion of the transaction, the chief operating officer directly owned 30,517 shares in the company, valued at approximately $1,282,934.68. This trade represents a 20.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Charles Michael Merdian sold 7,211 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $42.04, for a total value of $303,150.44. Following the completion of the transaction, the chief financial officer owned 20,540 shares of the company's stock, valued at $863,501.60. This represents a 25.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 22,451 shares of company stock worth $943,840. 12.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On LGI Homes

Large investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd raised its position 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 purchasing an additional 237 shares during the last quarter. Russell Investments Group Ltd. raised its position in LGI Homes by 106.6% in the second 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 acquired a new stake in shares of LGI Homes in the fourth quarter valued at about $29,000. Kemnay Advisory Services Inc. acquired a new stake in shares of LGI Homes in the fourth quarter valued at about $32,000. Finally, Rockefeller Capital Management L.P. increased its stake in shares of LGI Homes by 1,759.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 874 shares of the financial services provider's stock valued at $38,000 after buying an additional 827 shares during the period. 84.89% of the stock is currently owned by institutional investors.

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.

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.