LGI Homes (NASDAQ:LGIH) Shares Gap Down – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH)’s stock price gapped down prior to trading on Tuesday. The stock had previously closed at $47.42, but opened at $44.00. LGI Homes shares last traded at $47.7210, with a volume of 170,505 shares traded.

Analysts Set New Price Targets

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

LGI Homes Stock Down 3.6%

The business’s 50 day simple moving average is $47.90 and its 200 day simple moving average is $50.20. The company has a current ratio of 15.63, a quick ratio of 0.61 and a debt-to-equity ratio of 0.71. The firm has a market capitalization of $1.10 billion, a PE ratio of 15.46 and a beta of 1.88.

LGI Homes (NASDAQ:LGIH) last announced its earnings results on Tuesday, November 3rd. The financial services provider reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.33. LGI Homes had a net margin of 4.05% and a return on equity of 3.75%. The firm had revenue of $444.46 million for the quarter, compared to analysts’ expectations of $438.21 million. During the same period in the prior year, the company earned $0.85 EPS. The business’s revenue was up 12.1% compared to the same quarter last year.

Institutional Investors Weigh In On LGI Homes

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in LGI Homes in the second quarter worth about $226,799,000. Altshuler Shaham Ltd boosted its position in LGI Homes by 5.4% in 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 buying an additional 55,465 shares during the period. Atlas FRM LLC purchased a new stake in LGI Homes in the 2nd quarter valued at about $61,578,560. Wasatch Advisors LP grew its stake in LGI Homes by 16.1% in the 2nd quarter. Wasatch Advisors LP now owns 213,471 shares of the financial services provider’s stock worth $13,594,000 after acquiring an additional 29,679 shares in the last quarter. Finally, Philadelphia Financial Management of San Francisco LLC bought a new position in LGI Homes in the second quarter worth approximately $11,155,144. 84.89% of the stock is currently owned by hedge funds and other institutional investors.

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.