LGI Homes (NASDAQ:LGIH) Stock Price Down 5.8% – Here’s Why

LGI Homes, Inc. (NASDAQ:LGIH) shares traded down 5.8% during mid-day trading on Thursday . The stock traded as low as $49.18 and last traded at $49.1850. Approximately 60,721 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 406,988 shares. The stock had previously closed at $52.20.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Wall Street Zen upgraded shares of LGI Homes from a “sell” rating to a “hold” rating in a report on Sunday, August 16th. Weiss Ratings raised shares of LGI Homes from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, September 4th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $72.75.

LGI Homes Stock Performance

The firm has a market cap of $1.15 billion, a price-to-earnings ratio of 17.34 and a beta of 1.84. The company has a debt-to-equity ratio of 0.74, a current ratio of 17.74 and a quick ratio of 0.61. The firm has a fifty day simple moving average of $57.37 and a two-hundred day simple moving average of $50.58.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in LGIH. Caitong International Asset Management Co. Ltd grew its holdings in shares of LGI Homes by 75.5% during the third quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider’s stock valued at $28,000 after buying an additional 237 shares during the last quarter. Los Angeles Capital Management LLC purchased a new stake in LGI Homes during the 4th quarter valued at about $29,000. Russell Investments Group Ltd. grew its stake in LGI Homes by 106.6% during 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 during the last quarter. Kemnay Advisory Services Inc. acquired a new position in shares of LGI Homes in the fourth 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 fourth 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 during the period. 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.