LGI Homes (NASDAQ:LGIH) Shares Climb 7.5% - Still a Buy?

Key Points

• LGI Homes shares jumped 7.5% to approximately $43 during Thursday trading, although volume was 42% below the average session volume.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating from MarketBeat, with a $68 price target, while ratings range from Buy to Sell.
• The company beat quarterly expectations, reporting $1.16 in EPS versus $0.98 expected and revenue of $516.05 million, up 6.7% year over year; institutional investors own 84.89% of the shares.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s stock price rose 7.5% during trading on Thursday. The stock traded as high as $42.88 and last traded at $42.9960. 233,299 shares were traded during mid-day trading, a decline of 42% from the average session volume of 399,738 shares. The stock had previously closed at $40.01.

Analyst Ratings Changes

LGIH has been the topic of a number of research analyst reports. Weiss Ratings lowered LGI Homes from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, September 21st. Citigroup reiterated a "market outperform" rating on shares of LGI Homes in a research report on Tuesday, October 6th. Finally, Wall Street Zen raised LGI Homes from a "sell" rating to a "hold" rating in a research note on Sunday, August 16th. Two equities 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 company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $68.00.

LGI Homes Trading Up 6.9%

The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.61 and a current ratio of 17.74. The business has a fifty day simple moving average of $50.71 and a 200 day simple moving average of $51.37. The stock has a market capitalization of $994.40 million, a price-to-earnings ratio of 15.01 and a beta of 1.86.

LGI Homes (NASDAQ:LGIH - Get Free Report) last issued its earnings results on Tuesday, August 4th. The financial services provider reported $1.16 EPS for the quarter, beating the consensus estimate of $0.98 by $0.18. The company had revenue of $516.05 million during 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 business's revenue for the quarter was up 6.7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.36 EPS.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Rockefeller Capital Management L.P. lifted its holdings 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 worth $38,000 after purchasing an additional 827 shares in the last quarter. Allworth Financial LP bought a new stake in LGI Homes during the 2nd quarter valued at $56,000. Public Employees Retirement System of Ohio bought a new stake in LGI Homes during the 2nd quarter valued at $93,000. Integrated Wealth Concepts LLC acquired a new position in LGI Homes during the second quarter worth $111,000. Finally, GAMMA Investing LLC raised its holdings in LGI Homes by 14.7% during the second quarter. GAMMA Investing LLC now owns 2,093 shares of the financial services provider's stock worth $133,000 after buying an additional 269 shares during the last quarter. 84.89% of the stock is owned by institutional investors and hedge funds.

LGI Homes Company Profile

LGI Homes, Inc is a homebuilder that designs, constructs and sells single-family homes in planned residential communities across the United States. The company primarily serves entry-level and first-time homebuyers, while also offering homes for move-up buyers and active-adult customers. Its communities typically feature standardized home designs, modern amenities and financing-related support intended to simplify the homebuying process.

Founded in 2003, LGI Homes has expanded from its original Texas operations into numerous housing markets throughout the South, Southwest and other high-growth regions.

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