LGI Homes (NASDAQ:LGIH) Stock Crosses Below 200 Day Moving Average - Here's What Happened

Key Points

• LGI Homes shares fell below their 200-day moving average of $50.94, reaching a low of $45.81 before closing at $46.09.
• Analyst sentiment remains mixed: Citigroup reiterated an “outperform” rating, while the overall consensus is “Hold” with an average price target of $65.33.
• The company exceeded quarterly expectations, reporting $1.16 in earnings per share versus a $0.98 estimate and revenue of $516.05 million, up 6.7% year over year.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s share price crossed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $50.94 and traded as low as $45.81. LGI Homes shares last traded at $46.09, with a volume of 352,080 shares.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on LGIH shares. Citigroup reissued a "market outperform" rating on shares of LGI Homes in a research note on Tuesday. Weiss Ratings cut 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 report on Sunday, August 16th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, LGI Homes has an average rating of "Hold" and an average target price of $65.33.

LGI Homes Stock Performance

The firm's fifty day moving average is $53.97 and its 200 day moving average is $50.94. The firm has a market capitalization of $1.07 billion, a price-to-earnings ratio of 16.17 and a beta of 1.86. 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 released its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $1.16 earnings per share 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 analyst estimates of $489.23 million. During the same quarter in the prior year, the business earned $1.36 EPS. The company's revenue for the quarter was up 6.7% compared to the same quarter last year.

Institutional Trading of LGI Homes

Several hedge funds and other institutional investors have recently modified their holdings of LGIH. Tidal Investments LLC grew its stake in LGI Homes by 125.6% in the second quarter. Tidal Investments LLC now owns 20,301 shares of the financial services provider's stock valued at $1,293,000 after purchasing an additional 11,301 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in LGI Homes in the 2nd quarter worth about $111,000. Allworth Financial LP raised its stake in shares of LGI Homes by 159.8% during the 2nd quarter. Allworth Financial LP now owns 878 shares of the financial services provider's stock worth $56,000 after purchasing an additional 540 shares in the last quarter. Corient Private Wealth LP raised its stake in shares of LGI Homes by 92.5% during the 2nd quarter. Corient Private Wealth LP now owns 10,648 shares of the financial services provider's stock worth $678,000 after purchasing an additional 5,116 shares in the last quarter. Finally, AXQ Capital LP acquired a new stake in shares of LGI Homes during the 2nd quarter valued at about $229,000. 84.89% of the stock is currently owned by hedge funds and other 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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