LGI Homes (NASDAQ:LGIH) Shares Down 5.8% - Here's Why

Key Points

• LGI Homes shares fell 5.8% to about $49.19 in Thursday trading, with volume down 85% from the average session. The stock remains below its 50-day moving average of $57.89 but near its 200-day average of $50.63.
• Analyst sentiment is mixed, with two Buy, two Hold, and two Sell ratings; the consensus rating is Hold, with a price target of $72.75.
• The company recently exceeded quarterly expectations, reporting EPS of $1.16 versus the $0.98 consensus and revenue of $516.05 million versus $489.23 million expected; revenue increased 6.7% year over year.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) shares dropped 5.8% during trading on Thursday . The company traded as low as $49.18 and last traded at $49.1850. Approximately 60,721 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 406,988 shares. The stock had previously closed at $52.20.

Wall Street Analyst Weigh In

A number of research analysts 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. Weiss Ratings upgraded LGI Homes from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, September 4th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, LGI Homes currently has an average rating of "Hold" and a consensus price target of $72.75.

LGI Homes Trading Down 5.8%

The company has a market cap of $1.14 billion, a P/E ratio of 17.25 and a beta of 1.84. The stock's 50-day moving average is $57.89 and its two-hundred day moving average is $50.63. The company has a debt-to-equity ratio of 0.74, a current ratio of 17.74 and a quick ratio of 0.61.

LGI Homes (NASDAQ:LGIH - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $1.16 EPS for the quarter, beating analysts' consensus estimates 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 return on equity of 3.55% and a net margin of 3.88%.LGI Homes's revenue for the quarter was up 6.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.36 earnings per share.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd grew its holdings in LGI Homes by 75.5% during 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 period. Los Angeles Capital Management LLC purchased a new position in shares of LGI Homes during the 4th quarter valued at about $29,000. Russell Investments Group Ltd. grew its stake in shares of LGI Homes by 106.6% during the 2nd quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider's stock valued at $30,000 after acquiring an additional 305 shares during the period. Kemnay Advisory Services Inc. purchased a new stake in LGI Homes in the 4th quarter worth approximately $32,000. Finally, Rockefeller Capital Management L.P. raised its stake in LGI Homes by 1,759.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 874 shares of the financial services provider's stock worth $38,000 after acquiring an additional 827 shares during the period. 84.89% of the stock is currently owned by institutional investors.

About LGI Homes

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.

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