LGI Homes (NASDAQ:LGIH) Trading Down 7% – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH) was down 7% during mid-day trading on Monday . The company traded as low as $41.09 and last traded at $41.27. Approximately 194,097 shares traded hands during trading, a decline of 50% from the average daily volume of 386,006 shares. The stock had previously closed at $44.40.

Analysts Set New Price Targets

LGIH has been the subject of several research analyst reports. Citigroup reaffirmed an “outperform” rating on shares of LGI Homes in a research note on Wednesday, January 7th. Weiss Ratings reissued a “sell (d)” rating on shares of LGI Homes in a report on Monday, December 29th. Finally, Citizens Jmp upped their price objective on shares of LGI Homes from $85.00 to $95.00 and gave the stock a “market outperform” rating in a research report on Wednesday, January 7th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $74.63.

LGI Homes Price Performance

The stock has a market cap of $970.19 million, a price-to-earnings ratio of 13.39 and a beta of 1.88. The company has a current ratio of 20.98, a quick ratio of 0.76 and a debt-to-equity ratio of 0.79. The company’s fifty day moving average is $51.81 and its two-hundred day moving average is $51.38.

LGI Homes (NASDAQ:LGIH) last announced its quarterly earnings data on Tuesday, February 17th. The financial services provider reported $0.97 earnings per share for the quarter, beating analysts’ consensus estimates of $0.96 by $0.01. The firm had revenue of $473.97 million during the quarter, compared to analysts’ expectations of $479.60 million. LGI Homes had a net margin of 4.25% and a return on equity of 4.08%. The business’s quarterly revenue was down 15.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.15 earnings per share. As a group, research analysts predict that LGI Homes, Inc. will post 8.46 earnings per share for the current year.

Hedge Funds Weigh In On LGI Homes

Hedge funds have recently modified their holdings of the business. Voss Capital LP purchased a new position in shares of LGI Homes in the 2nd quarter valued at approximately $11,592,000. Tributary Capital Management LLC increased its stake in shares of LGI Homes by 93.1% during the third quarter. Tributary Capital Management LLC now owns 386,072 shares of the financial services provider’s stock worth $19,964,000 after acquiring an additional 186,159 shares during the period. CDAM UK Ltd raised its stake in shares of LGI Homes by 15.4% during the 4th quarter. CDAM UK Ltd now owns 743,153 shares of the financial services provider’s stock worth $31,926,000 after buying an additional 99,090 shares in the last quarter. SG Americas Securities LLC boosted its stake in shares of LGI Homes by 1,158.0% in the fourth quarter. SG Americas Securities LLC now owns 91,471 shares of the financial services provider’s stock valued at $3,930,000 after buying an additional 84,200 shares in the last quarter. Finally, Voloridge Investment Management LLC grew its holdings in LGI Homes by 118.5% during the third quarter. Voloridge Investment Management LLC now owns 155,012 shares of the financial services provider’s stock worth $8,016,000 after acquiring an additional 84,079 shares during the period. 84.89% of the stock is currently owned by hedge funds and other institutional investors.

About LGI Homes

LGI Homes, Inc (NASDAQ: LGIH) is a residential homebuilder primarily focused on serving first-time and first-time move-up homebuyers in the United States. The company specializes in the acquisition, development and sale of affordable single-family homes and townhomes. LGI Homes operates through an integrated model that encompasses land sourcing, lot development, home construction, and post-closing customer support including warranty services.

In addition to its core homebuilding activities, LGI Homes offers ancillary services to streamline the homebuying process for its customers.