LGI Homes, Inc. (NASDAQ:LGIH) Receives Average Recommendation of “Hold” from Brokerages

LGI Homes, Inc. (NASDAQ:LGIH) has received an average recommendation of “Hold” from the six brokerages that are currently covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and two have given a buy rating to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $72.75.

LGIH has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. raised their price target on shares of LGI Homes from $38.00 to $41.00 and gave the company an “underweight” rating in a report on Thursday, April 30th. Zacks Research raised shares of LGI Homes from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Finally, Wall Street Zen raised shares of LGI Homes from a “sell” rating to a “hold” rating in a report on Sunday.

LGI Homes Stock Performance

Shares of NASDAQ LGIH opened at $46.67 on Friday. The firm’s 50-day moving average price is $42.66 and its 200-day moving average price is $47.03. The company has a quick ratio of 0.70, a current ratio of 18.56 and a debt-to-equity ratio of 0.81. The company has a market cap of $1.08 billion, a PE ratio of 15.30 and a beta of 1.90. LGI Homes has a 52-week low of $33.55 and a 52-week high of $69.50.

LGI Homes (NASDAQ:LGIH) last announced its quarterly earnings results on Tuesday, April 28th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.22. The firm had revenue of $319.74 million for the quarter, compared to the consensus estimate of $328.22 million. LGI Homes had a net margin of 4.22% and a return on equity of 3.80%. The business’s quarterly revenue was down 9.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.17 EPS. As a group, analysts anticipate that LGI Homes will post 2.76 EPS for the current year.

Insider Activity

In other news, COO Michael Larry Snider sold 6,000 shares of the firm’s stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $42.04, for a total transaction of $252,240.00. Following the sale, the chief operating officer owned 175,556 shares of the company’s stock, valued at $7,380,374.24. This trade represents a 3.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Charles Michael Merdian sold 7,211 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was 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 in the company, valued at $863,501.60. This trade represents a 25.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 22,451 shares of company stock valued at $943,840 in the last 90 days. 12.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On LGI Homes

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Illinois Municipal Retirement Fund boosted its holdings in shares of LGI Homes by 10.4% in the first quarter. Illinois Municipal Retirement Fund now owns 13,177 shares of the financial services provider’s stock worth $521,000 after buying an additional 1,241 shares during the last quarter. Principal Financial Group Inc. boosted its holdings in shares of LGI Homes by 2.0% in the first quarter. Principal Financial Group Inc. now owns 98,722 shares of the financial services provider’s stock worth $3,902,000 after buying an additional 1,919 shares during the last quarter. Fifth Third Bancorp boosted its holdings in shares of LGI Homes by 44,577.3% in the first quarter. Fifth Third Bancorp now owns 39,316 shares of the financial services provider’s stock worth $1,554,000 after buying an additional 39,228 shares during the last quarter. Inspire Investing LLC boosted its holdings in shares of LGI Homes by 21.8% in the first quarter. Inspire Investing LLC now owns 13,186 shares of the financial services provider’s stock worth $521,000 after buying an additional 2,356 shares during the last quarter. Finally, Louisiana State Employees Retirement System purchased a new position in shares of LGI Homes in the first quarter worth approximately $356,000. Hedge funds and other institutional investors own 84.89% of the company’s stock.

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.