LGI Homes (NASDAQ:LGIH) Stock Price Down 4.3% – Should You Sell?

Shares of LGI Homes, Inc. (NASDAQ:LGIH) were down 4.3% during trading on Wednesday. The company traded as low as $41.39 and last traded at $41.2340. 47,364 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 398,717 shares. The stock had previously closed at $43.10.

Analysts Set New Price Targets

A number of research analysts have weighed in on LGIH shares. Wall Street Zen raised shares of LGI Homes from a “sell” rating to a “hold” rating in a research note on Sunday, August 16th. Citigroup restated a “market outperform” rating on shares of LGI Homes in a report on Tuesday, October 6th. Finally, Weiss Ratings lowered LGI Homes from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday, September 21st. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, LGI Homes has a consensus rating of “Hold” and a consensus price target of $68.00.

LGI Homes Stock Performance

The firm’s 50 day moving average price is $50.39 and its two-hundred day moving average price is $51.40. The firm has a market cap of $994.40 million, a PE ratio of 15.01 and a beta of 1.86. 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 (NASDAQ:LGIH) last released its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $1.16 EPS for the quarter, beating the consensus estimate of $0.98 by $0.18. LGI Homes had a net margin of 3.88% and a return on equity of 3.55%. The firm had revenue of $516.05 million for the quarter, compared to analyst estimates of $489.23 million. During the same quarter in the previous year, the company earned $1.36 EPS. The business’s revenue for the quarter was up 6.7% compared to the same quarter last year.

Institutional Investors Weigh In On LGI Homes

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in shares of LGI Homes during the 2nd quarter worth about $226,799,000. Atlas FRM LLC purchased a new stake in shares of LGI Homes during the second quarter worth $61,578,560. 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 worth $42,980,000 after purchasing an additional 55,465 shares during the period. Wasatch Advisors LP increased its stake in shares of LGI Homes by 16.1% during the second quarter. Wasatch Advisors LP now owns 213,471 shares of the financial services provider’s stock worth $13,594,000 after buying an additional 29,679 shares during the period. Finally, Philadelphia Financial Management of San Francisco LLC acquired a new stake in shares of LGI Homes in the 2nd quarter valued at $11,155,144. Hedge funds and other institutional investors own 84.89% of the company’s stock.

LGI Homes Company Profile

LGI Homes, Inc is a homebuilder that designs, constructs and sells single-family homes in planned residential communities across the United States. The company primarily serves entry-level and first-time homebuyers, while also offering homes for move-up buyers and active-adult customers. Its communities typically feature standardized home designs, modern amenities and financing-related support intended to simplify the homebuying process.

Founded in 2003, LGI Homes has expanded from its original Texas operations into numerous housing markets throughout the South, Southwest and other high-growth regions.