LGI Homes (NASDAQ:LGIH) Share Price Crosses Below Two Hundred Day Moving Average - What's Next?

Key Points

• LGI Homes shares fell below their 200-day moving average, trading as low as $41.13 and last changing hands at $42.35, down 6.5%.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $68.00; ratings include two Buys, one Hold and two Sells.
• The company exceeded quarterly expectations, reporting $1.16 in EPS versus a $0.98 estimate and $516.05 million in revenue, up 6.7% year over year. Institutional investors own 84.89% of the shares.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s share price crossed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $51.23 and traded as low as $41.13. LGI Homes shares last traded at $42.35, with a volume of 690,674 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. Citigroup restated a "market outperform" rating on shares of LGI Homes in a research report on Tuesday, October 6th. Wall Street Zen raised LGI Homes from a "sell" rating to a "hold" rating in a report on Sunday, August 16th. Finally, Weiss Ratings cut LGI Homes from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, September 21st. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $68.00.

LGI Homes Trading Down 6.5%

The firm has a market cap of $984.64 million, a P/E ratio of 14.86 and a beta of 1.86. 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 stock has a 50 day moving average of $52.30 and a 200 day moving average of $51.23.

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

Institutional Trading of LGI Homes

Several hedge funds have recently added to or reduced their stakes in LGIH. Everhart Financial Group Inc. raised its position in shares of LGI Homes by 9.4% in the 3rd quarter. Everhart Financial Group Inc. now owns 7,520 shares of the financial services provider's stock worth $351,000 after acquiring an additional 648 shares in the last quarter. Tidal Investments LLC increased its position in LGI Homes by 125.6% during the 2nd quarter. Tidal Investments LLC now owns 20,301 shares of the financial services provider's stock valued at $1,293,000 after buying an additional 11,301 shares in the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of LGI Homes during the second quarter valued at $111,000. Allworth Financial LP boosted its stake in LGI Homes by 159.8% in the 2nd quarter. Allworth Financial LP now owns 878 shares of the financial services provider's stock worth $56,000 after purchasing an additional 540 shares in the last quarter. Finally, Corient Private Wealth LP boosted its stake in LGI Homes by 92.5% in the 2nd quarter. Corient Private Wealth LP now owns 10,648 shares of the financial services provider's stock worth $678,000 after purchasing an additional 5,116 shares in the last quarter. 84.89% of the stock is owned by institutional investors.

About LGI Homes

LGI Homes, Inc is a residential construction company that designs, builds and sells new homes primarily to first-time buyers, move-up buyers and active-adult customers. Its portfolio generally includes single-family homes and, in select communities, townhomes and other attached housing. The company offers homes in a range of floor plans and typically emphasizes value-oriented designs, included features and move-in-ready construction.

Founded in 2003, LGI Homes serves buyers through communities across multiple regions of the United States, including markets in the South, Southeast, Southwest, West and select other metropolitan areas.

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