Wedbush Comments on LGI Homes' Q3 Earnings (NASDAQ:LGIH)

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 estimates for shares of LGI Homes in a report issued 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 posted its quarterly earnings data on Tuesday, August 5th. The financial services provider reported $1.36 earnings per share for the quarter, topping analysts' consensus estimates of $1.21 by $0.15. The firm had revenue of $483.49 million during the quarter, compared to analysts' expectations of $546.96 million. LGI Homes had a net margin of 7.63% and a return on equity of 8.00%. The firm's quarterly revenue was down 19.8% on a year-over-year basis. During the same quarter last year, the company posted $2.48 EPS.

A number of other research firms have also issued reports on LGIH. JMP Securities decreased their target price on LGI Homes from $140.00 to $75.00 and set a "market outperform" rating for the company in a report on Thursday. Citigroup reiterated an "outperform" rating on shares of LGI Homes in a research note on Thursday. Finally, JPMorgan Chase & Co. dropped their price target on shares of LGI Homes from $52.00 to $47.00 and set an "underweight" rating on the stock in a research note on Wednesday, July 9th. One research analyst has rated the stock with a sell rating, two have given a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat.com, LGI Homes has an average rating of "Hold" and a consensus price target of $71.67.

LGI Homes Trading Down 0.2%

Shares of NASDAQ:LGIH traded down $0.12 during mid-day trading on Friday, reaching $57.11. 299,585 shares of the company were exchanged, compared to its average volume of 377,760. The company has a debt-to-equity ratio of 0.85, a current ratio of 18.18 and a quick ratio of 0.54. LGI Homes has a 1 year low of $47.17 and a 1 year high of $125.83. The firm has a market cap of $1.32 billion, a price-to-earnings ratio of 8.61 and a beta of 1.69. The firm's 50-day simple moving average is $53.06 and its 200 day simple moving average is $62.62.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Wealth Enhancement Advisory Services LLC grew its position in shares of LGI Homes by 213.5% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 10,234 shares of the financial services provider's stock valued at $680,000 after purchasing an additional 6,970 shares during the last quarter. GAMMA Investing LLC boosted its position in LGI Homes by 219.1% during the first quarter. GAMMA Investing LLC now owns 887 shares of the financial services provider's stock worth $59,000 after acquiring an additional 609 shares during the last quarter. Northern Trust Corp boosted its position in LGI Homes by 11.5% during the fourth quarter. Northern Trust Corp now owns 219,547 shares of the financial services provider's stock worth $19,628,000 after acquiring an additional 22,615 shares during the last quarter. Janney Montgomery Scott LLC boosted its position in LGI Homes by 22.4% during the first quarter. Janney Montgomery Scott LLC now owns 3,406 shares of the financial services provider's stock worth $226,000 after acquiring an additional 623 shares during the last quarter. Finally, Tributary Capital Management LLC boosted its position in LGI Homes by 15.0% during the first quarter. Tributary Capital Management LLC now owns 215,556 shares of the financial services provider's stock worth $14,328,000 after acquiring an additional 28,095 shares during the last quarter. 84.89% of the stock is owned by hedge funds and other 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.