Wedbush Reaffirms Neutral Rating for LGI Homes (NASDAQ:LGIH)

Key Points

• Wedbush has reaffirmed a neutral rating for LGI Homes, with a price target of $95.00, suggesting an upside potential of 84.38% from the stock's previous close.
• Multiple equity analysts have differing views on LGI Homes, with ratings ranging from Buy to Sell, resulting in an average stock rating of Hold.
• LGI Homes reported earnings of $1.36 EPS for the last quarter, exceeding estimates but showing a significant revenue decline of 19.8% year-over-year.

LGI Homes (NASDAQ:LGIH - Get Free Report)'s stock had its "neutral" rating reaffirmed by stock analysts at Wedbush in a report released on Monday,Benzinga reports. They presently have a $95.00 price objective on the financial services provider's stock. Wedbush's price target indicates a potential upside of 84.38% from the stock's previous close.

A number of other equities analysts have also recently weighed in on LGIH. JMP Securities increased their price objective on shares of LGI Homes from $75.00 to $85.00 and gave the stock a "market outperform" rating in a research report on Wednesday, August 27th. JPMorgan Chase & Co. lowered their target price on shares of LGI Homes from $52.00 to $47.00 and set an "underweight" rating for the company in a research note on Wednesday, July 9th. Citigroup restated a "market outperform" rating on shares of LGI Homes in a research note on Wednesday, August 27th. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of LGI Homes in a report on Saturday, September 27th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, LGI Homes presently has an average rating of "Hold" and an average target price of $75.67.

LGI Homes Price Performance

Shares of LGI Homes stock traded down $1.65 on Monday, hitting $51.53. The company's stock had a trading volume of 25,264 shares, compared to its average volume of 339,576. The company has a market capitalization of $1.19 billion, a price-to-earnings ratio of 7.74 and a beta of 1.77. The firm has a fifty day moving average price of $59.37 and a 200-day moving average price of $57.04. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.64 and a current ratio of 18.18. LGI Homes has a 1 year low of $47.17 and a 1 year high of $118.31.

LGI Homes (NASDAQ:LGIH - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The financial services provider reported $1.36 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.21 by $0.15. The firm had revenue of $483.49 million for 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 revenue for the quarter was down 19.8% compared to the same quarter last year. During the same quarter last year, the company earned $2.48 EPS. As a group, sell-side analysts anticipate that LGI Homes will post 8.46 earnings per share for the current fiscal year.

Hedge Funds Weigh In On LGI Homes

A number of hedge funds and other institutional investors have recently bought and sold shares of LGIH. MassMutual Private Wealth & Trust FSB lifted its holdings in shares of LGI Homes by 453.1% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 531 shares of the financial services provider's stock worth $27,000 after purchasing an additional 435 shares during the last quarter. Russell Investments Group Ltd. grew its position in shares of LGI Homes by 106.6% during the second quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider's stock worth $30,000 after acquiring an additional 305 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in shares of LGI Homes by 12,620.0% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 636 shares of the financial services provider's stock worth $42,000 after acquiring an additional 631 shares during the period. Signaturefd LLC lifted its position in LGI Homes by 284.4% in the 2nd quarter. Signaturefd LLC now owns 815 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 603 shares during the last quarter. Finally, GAMMA Investing LLC grew its holdings in LGI Homes by 219.1% in the 1st quarter. GAMMA Investing LLC now owns 887 shares of the financial services provider's stock worth $59,000 after buying an additional 609 shares in the last quarter. 84.89% of the stock is currently owned by institutional investors and hedge funds.

LGI Homes Company Profile

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.

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