LGI Homes (NASDAQ:LGIH) Shares Gap Down - Should You Sell?

Key Points

• LGI Homes shares opened lower, falling from a prior close of $43.01 to $41.11 before trading around $42.34. The stock remains below its 50-day and 200-day moving averages, both near $51.3.
• Analyst sentiment is mixed, with two Buy, one Hold and two Sell ratings; the consensus rating is Hold, although the average price target of $68 is well above the recent share price.
• LGI Homes exceeded quarterly expectations, reporting $1.16 in adjusted EPS versus a $0.98 estimate and $516.05 million in revenue versus $489.23 million expected. Revenue increased 6.7% year over year, while institutional investors own 84.89% of the stock.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) gapped down prior to trading on Tuesday. The stock had previously closed at $43.01, but opened at $41.11. LGI Homes shares last traded at $42.3440, with a volume of 6,887 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Wall Street Zen upgraded shares of LGI Homes from a "sell" rating to a "hold" rating in a report on Sunday, August 16th. Weiss Ratings lowered shares of LGI Homes from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday, September 21st. Finally, Citigroup reaffirmed a "market outperform" rating on shares of LGI Homes in a research report on Tuesday, October 6th. 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's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $68.00.

LGI Homes Trading Up 4.7%

The stock has a 50 day moving average of $51.35 and a 200-day moving average of $51.32. The company has a current ratio of 17.74, a quick ratio of 0.61 and a debt-to-equity ratio of 0.74. The company has a market capitalization of $1.00 billion, a P/E ratio of 15.09 and a beta of 1.86.

LGI Homes (NASDAQ:LGIH - Get Free Report) last announced its quarterly earnings data 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. LGI Homes had a net margin of 3.88% and a return on equity of 3.55%. The firm had revenue of $516.05 million for the quarter, compared to the consensus estimate of $489.23 million. During the same period last year, the firm earned $1.36 EPS. The company's revenue was up 6.7% on a year-over-year basis.

Institutional Investors Weigh In On LGI Homes

A number of institutional investors and hedge funds have recently bought and sold shares of LGIH. Everhart Financial Group Inc. boosted its holdings in shares of LGI Homes by 9.4% during the 3rd quarter. Everhart Financial Group Inc. now owns 7,520 shares of the financial services provider's stock valued at $351,000 after purchasing an additional 648 shares during the last quarter. Tidal Investments LLC boosted its stake in LGI Homes by 125.6% during the second quarter. Tidal Investments LLC now owns 20,301 shares of the financial services provider's stock valued at $1,293,000 after buying an additional 11,301 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in LGI Homes during the 2nd quarter valued at approximately $111,000. Allworth Financial LP grew its holdings in LGI Homes by 159.8% during the 2nd quarter. Allworth Financial LP now owns 878 shares of the financial services provider's stock valued at $56,000 after buying an additional 540 shares in the last quarter. Finally, Corient Private Wealth LP increased its stake in LGI Homes by 92.5% in the 2nd quarter. Corient Private Wealth LP now owns 10,648 shares of the financial services provider's stock worth $678,000 after acquiring an additional 5,116 shares during the last quarter. 84.89% of the stock is owned by institutional investors.

About LGI Homes

LGI Homes, Inc is a residential construction company that designs, builds and sells new homes primarily to first-time buyers, move-up buyers and active-adult customers. Its portfolio generally includes single-family homes and, in select communities, townhomes and other attached housing. The company offers homes in a range of floor plans and typically emphasizes value-oriented designs, included features and move-in-ready construction.

Founded in 2003, LGI Homes serves buyers through communities across multiple regions of the United States, including markets in the South, Southeast, Southwest, West and select other metropolitan areas.

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