LGI Homes (NASDAQ:LGIH) Cut to “Sell” at Wall Street Zen

Wall Street Zen lowered shares of LGI Homes (NASDAQ:LGIH) from a hold rating to a sell rating in a research note issued to investors on Saturday.

Several other research firms have also issued reports on LGIH. Weiss Ratings upgraded shares of LGI Homes from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday, August 5th. Zacks Research upgraded LGI Homes from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Finally, JPMorgan Chase & Co. boosted their target price on LGI Homes from $38.00 to $41.00 and gave the company an “underweight” rating in a research note on Thursday, April 30th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $72.75.

LGI Homes Trading Down 5.6%

LGIH stock opened at $56.70 on Friday. The company has a market capitalization of $1.32 billion, a PE ratio of 19.89 and a beta of 1.83. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.61 and a current ratio of 17.74. LGI Homes has a one year low of $33.55 and a one year high of $69.50. The company’s 50 day moving average price is $57.50 and its two-hundred day moving average price is $50.43.

LGI Homes (NASDAQ:LGIH) last announced its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.98 by $0.18. LGI Homes had a net margin of 3.88% and a return on equity of 3.55%. The company had revenue of $516.05 million during the quarter, compared to analysts’ expectations of $489.23 million. During the same quarter in the prior year, the company earned $1.36 EPS. The firm’s revenue was up 6.7% on a year-over-year basis.

Institutional Investors Weigh In On LGI Homes

A number of large investors have recently added to or reduced their stakes in LGIH. BlackRock Inc. bought a new position in shares of LGI Homes during the second quarter valued at about $226,799,000. Wasatch Advisors LP grew its stake in shares of LGI Homes by 3.4% in the second quarter. Wasatch Advisors LP now owns 1,467,855 shares of the financial services provider’s stock worth $75,624,000 after purchasing an additional 48,795 shares during the last quarter. Altshuler Shaham Ltd increased its holdings in LGI Homes by 5.4% during the 1st quarter. Altshuler Shaham Ltd now owns 1,087,263 shares of the financial services provider’s stock valued at $42,980,000 after purchasing an additional 55,465 shares during the period. River Road Asset Management LLC raised its position in LGI Homes by 2.0% during the 4th quarter. River Road Asset Management LLC now owns 931,391 shares of the financial services provider’s stock valued at $40,013,000 after purchasing an additional 18,682 shares during the last quarter. Finally, CDAM UK Ltd raised its position in LGI Homes by 15.4% during the 4th quarter. CDAM UK Ltd now owns 743,153 shares of the financial services provider’s stock valued at $31,926,000 after purchasing an additional 99,090 shares during the last quarter. 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.