LGI Homes (NASDAQ:LGIH) Shares Gap Down - Here's What Happened

Key Points

• LGI Homes shares gapped down from a prior close of $47.42 to open at $44.00, later trading near $47.72 on volume of 170,505 shares.
• Analyst sentiment is mixed: the stock carries a consensus “Hold” rating from five analysts, with a consensus price target of $68.00.
• LGI Homes reported a quarterly earnings beat, posting $1.05 EPS versus the $0.72 estimate and $444.46 million in revenue, up 12.1% year over year.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s stock price gapped down prior to trading on Tuesday. The stock had previously closed at $47.42, but opened at $44.00. LGI Homes shares last traded at $47.7210, with a volume of 170,505 shares traded.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on LGIH. Citigroup reaffirmed a "market outperform" rating on shares of LGI Homes in a research note on Tuesday, October 6th. Weiss Ratings cut LGI Homes from a "sell (d+)" rating to a "sell (d)" rating in a 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 analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $68.00.

LGI Homes Stock Down 1.1%

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 50 day simple moving average of $48.40 and a 200-day simple moving average of $50.27. The firm has a market capitalization of $1.09 billion, a price-to-earnings ratio of 16.45 and a beta of 1.86.

LGI Homes (NASDAQ:LGIH - Get Free Report) last announced its quarterly earnings results on Tuesday, November 3rd. The financial services provider reported $1.05 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.33. LGI Homes had a net margin of 3.88% and a return on equity of 3.55%. The firm had revenue of $444.46 million for the quarter, compared to analysts' expectations of $438.21 million. During the same quarter in the previous year, the company posted $0.85 EPS. The company's revenue was up 12.1% compared to the same quarter last year.

Hedge Funds Weigh In On LGI Homes

Several institutional investors and hedge funds have recently bought and sold shares of the company. Compass Wealth Management LLC purchased a new stake in LGI Homes in the third quarter valued at $33,000. Rockefeller Capital Management L.P. lifted its stake 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 valued at $38,000 after purchasing an additional 827 shares during the last quarter. Allworth Financial LP acquired a new position in shares of LGI Homes in the 2nd quarter valued at $56,000. Public Employees Retirement System of Ohio purchased a new position in shares of LGI Homes during the 2nd quarter worth $93,000. Finally, Integrated Wealth Concepts LLC purchased a new position in shares of LGI Homes during the 2nd quarter worth $111,000. 84.89% of the stock is currently 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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