LGI Homes (NASDAQ:LGIH) Shares Down 4.3% - Time to Sell?

Key Points

• LGI Homes shares fell 4.3% to about $41.23 in low-volume trading, well below their 50-day and 200-day moving averages near $51.
• Analyst sentiment is mixed, with two Buy, one Hold, and two Sell ratings; the consensus rating is Hold, while the average price target of $68 implies substantial upside.
• The company beat quarterly earnings and revenue expectations, reporting $1.16 in EPS and $516.05 million in revenue, though institutional investors already own a substantial 84.89% of its shares.

Shares of LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) traded down 4.3% on Wednesday. The company traded as low as $41.39 and last traded at $41.2340. 47,364 shares were traded during trading, a decline of 88% from the average session volume of 398,717 shares. The stock had previously closed at $43.10.

Analysts Set New Price Targets

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

LGI Homes Trading Down 3.8%

The company has a quick ratio of 0.61, a current ratio of 17.74 and a debt-to-equity ratio of 0.74. The firm has a market cap of $964.15 million, a price-to-earnings ratio of 14.52 and a beta of 1.86. The business has a 50 day moving average price of $51.05 and a 200-day moving average price of $51.36.

LGI Homes (NASDAQ:LGIH - Get Free Report) last announced 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 business had revenue of $516.05 million for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period last year, the business posted $1.36 EPS.

Institutional Trading of LGI Homes

A number of hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in LGI Homes in the second quarter valued at about $226,799,000. Altshuler Shaham Ltd grew its stake in 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 purchasing an additional 55,465 shares in the last quarter. Atlas FRM LLC purchased a new stake in LGI Homes during the 2nd quarter worth approximately $61,578,560. Wasatch Advisors LP increased its holdings in LGI Homes by 16.1% during the 2nd quarter. Wasatch Advisors LP now owns 213,471 shares of the financial services provider's stock worth $13,594,000 after purchasing an additional 29,679 shares during the last quarter. Finally, Philadelphia Financial Management of San Francisco LLC purchased a new stake in LGI Homes during the 2nd 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 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.

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.