LGI Homes (NASDAQ:LGIH) Stock Price Up 5.8% - Still a Buy?

Key Points

• LGI Homes shares rose 5.8% to about $44.83, although trading volume was roughly 96% below the average daily level.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating from MarketBeat, with an average price target of $68.00; ratings include two Buys, one Hold and two Sells.
• The company exceeded quarterly expectations, reporting $1.16 in EPS versus a $0.98 consensus estimate and $516.05 million in revenue, up 6.7% year over year. Institutional investors own approximately 84.89% of outstanding shares.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) shares traded up 5.8% during trading on Friday. The company traded as high as $45.10 and last traded at $44.8250. Approximately 16,381 shares traded hands during trading, a decline of 96% from the average daily volume of 400,605 shares. The stock had previously closed at $42.35.

Analyst Upgrades and Downgrades

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

LGI Homes Price Performance

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 business's 50 day moving average price is $52.00 and its two-hundred day moving average price is $51.27. The stock has a market cap of $1.03 billion, a P/E ratio of 15.50 and a beta of 1.86.

LGI Homes (NASDAQ:LGIH - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $1.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.98 by $0.18. LGI Homes had a net margin of 3.88% and a return on equity of 3.55%. The company had revenue of $516.05 million during the quarter, compared to the consensus estimate of $489.23 million. During the same period in the prior year, the firm earned $1.36 earnings per share. LGI Homes's revenue was up 6.7% on a year-over-year basis.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in LGIH. Legal & General Group Plc bought a new stake in shares of LGI Homes during the second quarter valued at approximately $3,085,000. OneDigital Investment Advisors LLC purchased a new stake in LGI Homes in the second quarter worth $2,739,000. Quantbot Technologies LP purchased a new stake in LGI Homes in the second quarter worth $1,973,000. Bank of America Corp DE purchased a new stake in LGI Homes in the second quarter worth $5,048,000. Finally, Atlas FRM LLC bought a new position in LGI Homes in the second quarter worth $61,578,560. Hedge funds and other institutional investors own 84.89% of the company's stock.

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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