Wedbush Issues Pessimistic Forecast for LGI Homes Earnings

Key Points

• Wedbush has significantly lowered its earnings forecast for LGI Homes, expecting Q3 2025 earnings per share to be only $0.95, down from $2.14.
• Despite previous earnings reports exceeding expectations, LGI Homes experienced a 19.8% revenue decline compared to the same quarter last year, with revenues of $483.49 million against consensus estimates of $546.96 million.
• Multiple brokerages, including JPMorgan Chase, have adjusted their target prices for LGI Homes, with current estimates ranging from $47.00 to $93.00 per share amidst a generally negative outlook.

LGI Homes, Inc. (NASDAQ:LGIH - Free Report) - Equities research analysts at Wedbush lowered their Q3 2025 earnings per share estimates for LGI Homes in a report released on Tuesday, August 5th. Wedbush analyst J. Mccanless now anticipates that the financial services provider will post earnings per share of $0.95 for the quarter, down from their prior estimate of $2.14. Wedbush currently has a "Neutral" rating and a $93.00 price target on the stock. The consensus estimate for LGI Homes' current full-year earnings is $8.46 per share. Wedbush also issued estimates for LGI Homes' Q4 2025 earnings at $0.95 EPS, FY2025 earnings at $3.72 EPS, Q1 2026 earnings at $0.75 EPS, Q3 2026 earnings at $1.29 EPS, Q4 2026 earnings at $1.57 EPS and FY2026 earnings at $4.77 EPS.

LGI Homes (NASDAQ:LGIH - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The financial services provider reported $1.36 EPS for the quarter, topping analysts' consensus estimates of $1.21 by $0.15. The company had revenue of $483.49 million for the quarter, compared to analysts' expectations of $546.96 million. LGI Homes had a return on equity of 8.00% and a net margin of 7.63%. LGI Homes's revenue was down 19.8% on a year-over-year basis. During the same quarter last year, the business earned $2.48 earnings per share.

LGIH has been the topic of several other reports. JMP Securities reduced their price objective on LGI Homes from $140.00 to $75.00 and set a "market outperform" rating on the stock in a research note on Thursday, August 7th. JPMorgan Chase & Co. cut their price target on LGI Homes from $52.00 to $47.00 and set an "underweight" rating on the stock in a research note on Wednesday, July 9th. Finally, Citigroup reissued an "outperform" rating on shares of LGI Homes in a research note on Thursday, August 7th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and two have given a buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $71.67.

LGI Homes Price Performance

NASDAQ:LGIH traded up $4.44 during trading hours on Friday, hitting $61.37. The company's stock had a trading volume of 283,931 shares, compared to its average volume of 323,386. The stock has a fifty day simple moving average of $53.23 and a 200-day simple moving average of $62.39. The company has a market capitalization of $1.42 billion, a P/E ratio of 9.22 and a beta of 1.69. The company has a debt-to-equity ratio of 0.85, a current ratio of 18.18 and a quick ratio of 0.64. LGI Homes has a twelve month low of $47.17 and a twelve month high of $125.83.

Hedge Funds Weigh In On LGI Homes

A number of hedge funds have recently made changes to their positions in LGIH. MassMutual Private Wealth & Trust FSB increased its holdings in shares of LGI Homes by 453.1% during the second quarter. MassMutual Private Wealth & Trust FSB now owns 531 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 435 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in shares of LGI Homes by 12,620.0% during the first quarter. Caitong International Asset Management Co. Ltd now owns 636 shares of the financial services provider's stock valued at $42,000 after acquiring an additional 631 shares in the last quarter. Signaturefd LLC increased its holdings in shares of LGI Homes by 284.4% during the second quarter. Signaturefd LLC now owns 815 shares of the financial services provider's stock valued at $42,000 after acquiring an additional 603 shares in the last quarter. Sterling Capital Management LLC increased its holdings in shares of LGI Homes by 801.5% during the fourth quarter. Sterling Capital Management LLC now owns 613 shares of the financial services provider's stock valued at $55,000 after acquiring an additional 545 shares in the last quarter. Finally, GAMMA Investing LLC boosted its position in shares of LGI Homes by 219.1% during the first quarter. GAMMA Investing LLC now owns 887 shares of the financial services provider's stock valued at $59,000 after buying an additional 609 shares during the last quarter. 84.89% of the stock is currently owned by institutional investors.

About LGI Homes

LGI Homes, Inc designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to large institutions looking to acquire single-family rental properties.