LGI Homes (NASDAQ:LGIH) Shares Down 4.2% - Here's Why

Key Points

• LGI Homes shares fell 4.2% on Wednesday, closing at $42.109 after trading as low as $41.70; volume was 84% below its average.
• Analysts’ consensus rating is Hold, with an average price target of $68.00; recent opinions ranged from Buy to Sell.
• The company’s latest quarter beat expectations, reporting EPS of $1.05 versus $0.72 forecast and revenue of $444.46 million, up 12.1% year over year.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s stock price fell 4.2% during trading on Wednesday. The stock traded as low as $41.70 and last traded at $42.1090. 61,843 shares were traded during mid-day trading, a decline of 84% from the average daily volume of 398,565 shares. The stock had previously closed at $43.94.

Analysts Set New Price Targets

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

LGI Homes Stock Performance

The company's 50-day moving average is $46.99 and its two-hundred day moving average is $50.04. The company has a market capitalization of $981.30 million, a P/E ratio of 13.82 and a beta of 1.88. The company has a quick ratio of 0.57, a current ratio of 15.63 and a debt-to-equity ratio of 0.71.

LGI Homes (NASDAQ:LGIH - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The financial services provider reported $1.05 EPS for the quarter, topping analysts' consensus estimates of $0.72 by $0.33. The business had revenue of $444.46 million during the quarter, compared to analysts' expectations of $438.21 million. LGI Homes had a net margin of 4.05% and a return on equity of 3.75%. The business's quarterly revenue was up 12.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.85 EPS.

Institutional Investors Weigh In On LGI Homes

A number of large investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of LGI Homes in the 2nd quarter worth about $226,799,000. Altshuler Shaham Ltd raised its holdings in shares of LGI Homes by 5.4% during the 1st quarter. Altshuler Shaham Ltd now owns 1,087,263 shares of the financial services provider's stock valued at $42,980,000 after buying an additional 55,465 shares in the last quarter. Atlas FRM LLC bought a new stake in LGI Homes in the 2nd quarter worth approximately $61,578,560. Wasatch Advisors LP boosted its stake in LGI Homes by 16.1% in the second quarter. Wasatch Advisors LP now owns 213,471 shares of the financial services provider's stock worth $13,594,000 after buying an additional 29,679 shares in the last quarter. Finally, Philadelphia Financial Management of San Francisco LLC purchased a new stake in LGI Homes in the second quarter worth approximately $11,155,144. Hedge funds and other institutional investors own 84.89% of the company's stock.

About LGI Homes

LGI Homes, Inc. is a residential homebuilder headquartered in The Woodlands, Texas. Founded in 2003, the company develops and sells newly built homes, including single-family houses and townhomes, in planned communities. Its homes are marketed to a range of buyers, including first-time buyers and households seeking larger homes. The company operates under the LGI Homes and Terrata Homes brands, offering homes across markets in multiple U.S. states. Its communities feature a variety of home designs and locations, with offerings that vary by market.

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