LGI Homes (NASDAQ:LGIH) Shares Gap Up Following Strong Earnings

LGI Homes, Inc. (NASDAQ:LGIH)’s stock price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $104.95, but opened at $112.00. LGI Homes shares last traded at $112.74, with a volume of 51,863 shares changing hands.

The financial services provider reported $2.48 EPS for the quarter, topping analysts’ consensus estimates of $2.24 by $0.24. LGI Homes had a net margin of 8.78% and a return on equity of 10.45%. The company had revenue of $602.50 million during the quarter, compared to the consensus estimate of $617.44 million. During the same period in the prior year, the business posted $2.25 EPS. The company’s quarterly revenue was down 6.6% on a year-over-year basis.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on LGIH. JMP Securities reiterated a “market outperform” rating and issued a $160.00 target price on shares of LGI Homes in a research note on Friday, April 5th. Wedbush reiterated an “underperform” rating and issued a $74.00 target price on shares of LGI Homes in a research note on Thursday, June 6th. StockNews.com downgraded shares of LGI Homes from a “hold” rating to a “sell” rating in a research note on Friday, May 3rd. Finally, JPMorgan Chase & Co. cut their target price on shares of LGI Homes from $95.00 to $93.00 and set an “underweight” rating for the company in a research note on Wednesday, July 10th. Three research analysts have rated the stock with a sell rating, two have issued a hold rating and one has assigned a buy rating to the company. According to MarketBeat, LGI Homes presently has an average rating of “Hold” and a consensus target price of $107.50.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in LGI Homes by 0.9% in the 1st quarter. Vanguard Group Inc. now owns 2,220,411 shares of the financial services provider’s stock valued at $258,389,000 after acquiring an additional 19,800 shares during the period. Wasatch Advisors LP increased its holdings in shares of LGI Homes by 9.9% during the first quarter. Wasatch Advisors LP now owns 1,460,245 shares of the financial services provider’s stock worth $169,929,000 after purchasing an additional 131,467 shares during the period. Dimensional Fund Advisors LP increased its holdings in shares of LGI Homes by 4.3% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,443,038 shares of the financial services provider’s stock worth $192,158,000 after purchasing an additional 58,850 shares during the period. Capital World Investors increased its holdings in shares of LGI Homes by 6.2% during the first quarter. Capital World Investors now owns 846,202 shares of the financial services provider’s stock worth $98,473,000 after purchasing an additional 49,640 shares during the period. Finally, CDAM UK Ltd increased its holdings in shares of LGI Homes by 14.7% during the fourth quarter. CDAM UK Ltd now owns 674,960 shares of the financial services provider’s stock worth $89,878,000 after purchasing an additional 86,265 shares during the period. 84.89% of the stock is owned by institutional investors.

LGI Homes Price Performance

The company’s fifty day moving average price is $96.02 and its 200 day moving average price is $104.74. The company has a market capitalization of $2.62 billion, a P/E ratio of 14.02 and a beta of 1.92. The company has a quick ratio of 0.43, a current ratio of 12.63 and a debt-to-equity ratio of 0.78.

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.