StockNews.com Downgrades LGI Homes (NASDAQ:LGIH) to Sell

StockNews.com lowered shares of LGI Homes (NASDAQ:LGIH) from a hold rating to a sell rating in a research note released on Wednesday.

LGIH has been the topic of several other reports. Wedbush reissued an underperform rating and set a $74.00 target price (down from $88.00) on shares of LGI Homes in a research note on Tuesday, April 2nd. JMP Securities reissued a market outperform rating and set a $160.00 target price on shares of LGI Homes in a research note on Friday, April 5th. Three equities research analysts have rated the stock with a sell rating, two have given a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of Hold and an average target price of $110.50.

LGI Homes Price Performance

LGIH opened at $93.38 on Wednesday. The firm has a market cap of $2.20 billion, a price-to-earnings ratio of 11.09 and a beta of 1.83. LGI Homes has a 1 year low of $84.15 and a 1 year high of $141.91. The stock’s 50 day simple moving average is $110.44 and its 200 day simple moving average is $113.48. The company has a debt-to-equity ratio of 0.67, a current ratio of 10.66 and a quick ratio of 0.42.

LGI Homes (NASDAQ:LGIH) last posted its earnings results on Tuesday, February 20th. The financial services provider reported $2.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.54 by ($0.35). LGI Homes had a net margin of 8.45% and a return on equity of 11.28%. The business had revenue of $608.41 million for the quarter, compared to analysts’ expectations of $663.95 million. During the same period last year, the firm posted $1.45 earnings per share. LGI Homes’s quarterly revenue was up 24.6% on a year-over-year basis. As a group, analysts predict that LGI Homes will post 9.24 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Charles Michael Merdian sold 6,361 shares of the company’s stock in a transaction on Monday, March 11th. The stock was sold at an average price of $111.95, for a total value of $712,113.95. Following the sale, the chief financial officer now directly owns 9,458 shares of the company’s stock, valued at $1,058,823.10. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. In related news, CEO Eric Thomas Lipar sold 10,869 shares of the company’s stock in a transaction on Monday, March 11th. The stock was sold at an average price of $111.95, for a total value of $1,216,784.55. Following the sale, the chief executive officer now directly owns 627,430 shares of the company’s stock, valued at $70,240,788.50. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Charles Michael Merdian sold 6,361 shares of the business’s stock in a transaction on Monday, March 11th. The stock was sold at an average price of $111.95, for a total value of $712,113.95. Following the completion of the sale, the chief financial officer now directly owns 9,458 shares in the company, valued at $1,058,823.10. The disclosure for this sale can be found here. Insiders have sold a total of 26,435 shares of company stock valued at $2,944,291 over the last ninety days. Company insiders own 12.40% of the company’s stock.

Institutional Investors Weigh In On LGI Homes

Several hedge funds have recently added to or reduced their stakes in LGIH. Dark Forest Capital Management LP bought a new stake in LGI Homes in the first quarter worth $27,000. GAMMA Investing LLC bought a new stake in LGI Homes in the fourth quarter worth $38,000. Financial Management Professionals Inc. bought a new stake in LGI Homes in the third quarter worth $42,000. First Horizon Advisors Inc. boosted its holdings in LGI Homes by 35.8% in the fourth quarter. First Horizon Advisors Inc. now owns 353 shares of the financial services provider’s stock worth $47,000 after acquiring an additional 93 shares in the last quarter. Finally, Mather Group LLC. bought a new stake in LGI Homes in the first quarter worth $47,000. 84.89% of the stock is owned by institutional investors.

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.