LGI Homes (NASDAQ:LGIH) Trading Up 8% – Should You Buy?

LGI Homes, Inc. (NASDAQ:LGIH)’s share price was up 8% during mid-day trading on Wednesday . The company traded as high as $58.25 and last traded at $58.1760. Approximately 104,742 shares were traded during mid-day trading, a decline of 73% from the average daily volume of 384,516 shares. The stock had previously closed at $53.86.

Wall Street Analyst Weigh In

Several research firms have weighed in on LGIH. JPMorgan Chase & Co. boosted their price target on shares of LGI Homes from $47.00 to $48.50 and gave the stock an “underweight” rating in a research note on Tuesday, October 14th. Citigroup reissued an “outperform” rating on shares of LGI Homes in a research note on Wednesday, January 7th. Weiss Ratings restated a “sell (d)” rating on shares of LGI Homes in a report on Monday, December 29th. Capital One Financial set a $60.00 price objective on LGI Homes in a research report on Thursday, October 9th. Finally, Citizens Jmp increased their price objective on LGI Homes from $85.00 to $95.00 and gave the company a “market outperform” rating in a research note on Wednesday, January 7th. Three research 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’s stock. According to data from MarketBeat.com, LGI Homes currently has a consensus rating of “Hold” and a consensus target price of $76.70.

LGI Homes Trading Up 8.7%

The stock’s 50-day simple moving average is $48.81 and its 200-day simple moving average is $52.09. The company has a debt-to-equity ratio of 0.84, a quick ratio of 0.58 and a current ratio of 18.02. The firm has a market capitalization of $1.35 billion, a PE ratio of 12.92 and a beta of 1.90.

LGI Homes (NASDAQ:LGIH) last announced its quarterly earnings results on Tuesday, November 4th. The financial services provider reported $0.85 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.94 by ($0.09). LGI Homes had a net margin of 5.93% and a return on equity of 5.50%. The company had revenue of $396.63 million for the quarter, compared to analysts’ expectations of $421.66 million. As a group, sell-side analysts expect that LGI Homes, Inc. will post 8.46 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd grew 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 worth $28,000 after purchasing an additional 237 shares during the period. Versant Capital Management Inc grew its position in shares of LGI Homes by 35.1% in the 3rd quarter. Versant Capital Management Inc now owns 947 shares of the financial services provider’s stock worth $49,000 after buying an additional 246 shares during the period. PNC Financial Services Group Inc. increased its stake in shares of LGI Homes by 4.8% in the 2nd quarter. PNC Financial Services Group Inc. now owns 5,976 shares of the financial services provider’s stock worth $308,000 after acquiring an additional 275 shares in the last quarter. Illinois Municipal Retirement Fund lifted its position in LGI Homes by 2.6% during the 3rd quarter. Illinois Municipal Retirement Fund now owns 10,970 shares of the financial services provider’s stock valued at $567,000 after acquiring an additional 275 shares during the period. Finally, Russell Investments Group Ltd. lifted its position 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 acquiring an additional 305 shares during the period. 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.