LGI Homes (NASDAQ:LGIH) Shares Gap Up – Here’s Why

LGI Homes, Inc. (NASDAQ:LGIH)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $47.31, but opened at $50.27. LGI Homes shares last traded at $50.93, with a volume of 43,093 shares traded.

Analysts Set New Price Targets

LGIH has been the subject of a number of recent research reports. Wall Street Zen cut shares of LGI Homes from a “hold” rating to a “sell” rating in a research note on Saturday, May 23rd. JPMorgan Chase & Co. increased their price target on shares of LGI Homes from $38.00 to $41.00 and gave the stock an “underweight” rating in a research note on Thursday, April 30th. Zacks Research upgraded shares of LGI Homes from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 21st. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of LGI Homes in a research note on Friday, May 22nd. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, LGI Homes currently has a consensus rating of “Hold” and a consensus target price of $72.75.

LGI Homes Price Performance

The company has a market cap of $1.18 billion, a price-to-earnings ratio of 16.71 and a beta of 1.87. The company has a current ratio of 18.56, a quick ratio of 0.70 and a debt-to-equity ratio of 0.81. The company’s 50 day moving average price is $43.47 and its 200 day moving average price is $47.10.

LGI Homes (NASDAQ:LGIH) last released its earnings results on Tuesday, April 28th. The financial services provider reported $0.24 EPS for the quarter, topping the consensus estimate of $0.02 by $0.22. LGI Homes had a net margin of 4.22% and a return on equity of 3.80%. The company had revenue of $319.74 million during the quarter, compared to analysts’ expectations of $328.22 million. During the same quarter last year, the business earned $0.17 EPS. The business’s revenue was down 9.0% on a year-over-year basis. Equities research analysts forecast that LGI Homes, Inc. will post 2.76 earnings per share for the current year.

Insider Transactions at LGI Homes

In other news, General Counsel Scott James Garber sold 1,353 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $42.04, for a total value of $56,880.12. Following the completion of the transaction, the general counsel owned 21,716 shares in the company, valued at $912,940.64. This trade represents a 5.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Charles Michael Merdian sold 7,211 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $42.04, for a total transaction of $303,150.44. Following the completion of the transaction, the chief financial officer owned 20,540 shares of the company’s stock, valued at $863,501.60. This represents a 25.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 22,451 shares of company stock worth $943,840. Company insiders own 12.60% of the company’s stock.

Hedge Funds Weigh In On LGI Homes

Large investors have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd increased its holdings in shares of LGI Homes by 75.5% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider’s stock valued at $28,000 after purchasing an additional 237 shares in the last quarter. Los Angeles Capital Management LLC purchased a new position in shares of LGI Homes in the 4th quarter valued at about $29,000. Russell Investments Group Ltd. increased its holdings in shares of LGI Homes by 106.6% in the 2nd quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider’s stock valued at $30,000 after purchasing an additional 305 shares in the last quarter. Kemnay Advisory Services Inc. purchased a new position in shares of LGI Homes in the 4th quarter valued at about $32,000. Finally, Rockefeller Capital Management L.P. increased its holdings in shares of LGI Homes by 1,759.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 874 shares of the financial services provider’s stock valued at $38,000 after purchasing an additional 827 shares in the last quarter. Hedge funds and other institutional investors own 84.89% of the company’s stock.

LGI Homes Company Profile

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.