LGI Homes (NASDAQ:LGIH) Sets New 12-Month Low – Time to Sell?

LGI Homes, Inc. (NASDAQ:LGIH)’s share price reached a new 52-week low on Thursday . The stock traded as low as $68.45 and last traded at $68.77, with a volume of 67467 shares changing hands. The stock had previously closed at $69.75.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on LGIH. JMP Securities restated a “market outperform” rating and set a $160.00 price objective on shares of LGI Homes in a report on Friday, January 10th. JPMorgan Chase & Co. decreased their price objective on LGI Homes from $82.00 to $80.00 and set an “underweight” rating on the stock in a report on Tuesday, January 14th. Wedbush reiterated a “neutral” rating and set a $115.00 price objective (down previously from $125.00) on shares of LGI Homes in a research report on Tuesday, January 7th. Finally, Seaport Res Ptn raised shares of LGI Homes from a “strong sell” rating to a “hold” rating in a research report on Monday, January 27th. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $118.33.

LGI Homes Stock Down 4.9 %

The stock has a 50-day moving average of $79.87 and a 200-day moving average of $95.71. The company has a debt-to-equity ratio of 0.77, a current ratio of 12.72 and a quick ratio of 0.54. The firm has a market cap of $1.54 billion, a price-to-earnings ratio of 7.88 and a beta of 2.13.

LGI Homes (NASDAQ:LGIH) last issued its quarterly earnings results on Tuesday, February 25th. The financial services provider reported $2.15 EPS for the quarter, missing analysts’ consensus estimates of $2.31 by ($0.16). The company had revenue of $557.40 million during the quarter, compared to the consensus estimate of $588.56 million. LGI Homes had a return on equity of 10.32% and a net margin of 8.75%. The firm’s revenue for the quarter was down 8.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.19 EPS. Sell-side analysts predict that LGI Homes, Inc. will post 8.46 EPS for the current fiscal year.

Insider Buying and Selling at LGI Homes

In other LGI Homes news, COO Michael Larry Snider sold 1,105 shares of the business’s stock in a transaction that occurred on Monday, March 10th. The shares were sold at an average price of $75.94, for a total transaction of $83,913.70. Following the completion of the transaction, the chief operating officer now directly owns 27,102 shares in the company, valued at $2,058,125.88. The trade was a 3.92 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 12.30% of the company’s stock.

Hedge Funds Weigh In On LGI Homes

A number of institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in LGI Homes by 2.4% during the fourth quarter. Vanguard Group Inc. now owns 2,274,907 shares of the financial services provider’s stock worth $203,377,000 after acquiring an additional 54,039 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in LGI Homes by 0.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,504,384 shares of the financial services provider’s stock valued at $134,491,000 after purchasing an additional 6,706 shares during the last quarter. Wasatch Advisors LP boosted its position in LGI Homes by 2.7% in the fourth quarter. Wasatch Advisors LP now owns 1,395,710 shares of the financial services provider’s stock valued at $124,776,000 after buying an additional 36,608 shares in the last quarter. Khrom Capital Management LLC grew its stake in shares of LGI Homes by 19.4% during the fourth quarter. Khrom Capital Management LLC now owns 1,095,801 shares of the financial services provider’s stock worth $97,965,000 after buying an additional 177,698 shares during the last quarter. Finally, Disciplined Growth Investors Inc. MN lifted its stake in shares of LGI Homes by 3.7% in the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 939,504 shares of the financial services provider’s stock valued at $111,350,000 after acquiring an additional 33,306 shares during the last quarter. Institutional investors and hedge funds own 84.89% of the company’s stock.

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.