LGI Homes (NASDAQ:LGIH) Trading Down 6.7% – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH) shares fell 6.7% on Monday . The company traded as low as $56.43 and last traded at $55.99. 34,465 shares were traded during mid-day trading, a decline of 92% from the average session volume of 427,797 shares. The stock had previously closed at $60.04.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on LGIH. JPMorgan Chase & Co. lifted their price objective on shares of LGI Homes from $38.00 to $41.00 and gave the stock an “underweight” rating in a research report on Thursday, April 30th. Zacks Research upgraded LGI Homes from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 21st. Wall Street Zen downgraded LGI Homes from a “hold” rating to a “sell” rating in a report on Saturday. Finally, Weiss Ratings raised LGI Homes from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $72.75.

LGI Homes Price Performance

The company has a market capitalization of $1.31 billion, a PE ratio of 19.81 and a beta of 1.83. 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 company’s 50 day simple moving average is $57.34 and its 200 day simple moving average is $50.41.

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

Institutional Investors Weigh In On LGI Homes

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd boosted its stake in LGI Homes by 75.5% in 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 acquiring an additional 237 shares in the last quarter. Russell Investments Group Ltd. lifted 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 during the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of LGI Homes in the 4th quarter valued at about $29,000. Kemnay Advisory Services Inc. acquired a new stake in shares of LGI Homes in the 4th quarter valued at about $32,000. Finally, Rockefeller Capital Management L.P. boosted its position 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 during the period. 84.89% of the stock is owned by hedge funds and other institutional investors.

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.