LGI Homes (NASDAQ:LGIH) Shares Up 7% After Earnings Beat

Shares of LGI Homes, Inc. (NASDAQ:LGIH) rose 7% on Tuesday following a stronger than expected earnings report. The company traded as high as $112.39 and last traded at $110.77. Approximately 110,194 shares changed hands during trading, a decline of 48% from the average daily volume of 210,321 shares. The stock had previously closed at $103.54.

The financial services provider reported $2.95 earnings per share for the quarter, beating analysts’ consensus estimates of $2.54 by $0.41. LGI Homes had a net margin of 8.78% and a return on equity of 10.45%. The company had revenue of $651.85 million for the quarter, compared to analyst estimates of $645.27 million. During the same period last year, the firm earned $2.84 earnings per share. The firm’s revenue was up 5.6% on a year-over-year basis.

Analysts Set New Price Targets

Several research firms have weighed in on LGIH. JPMorgan Chase & Co. cut their price objective on LGI Homes from $95.00 to $93.00 and set an “underweight” rating on the stock in a research report on Wednesday, July 10th. Wedbush restated a “neutral” rating and set a $125.00 price objective on shares of LGI Homes in a report on Wednesday. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and one has issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $126.00.

Institutional Trading of LGI Homes

A number of institutional investors have recently modified their holdings of LGIH. Altshuler Shaham Ltd lifted its position in shares of LGI Homes by 5,860.2% during the second quarter. Altshuler Shaham Ltd now owns 454,760 shares of the financial services provider’s stock worth $40,696,000 after acquiring an additional 447,130 shares in the last quarter. Khrom Capital Management LLC purchased a new position in shares of LGI Homes during the 2nd quarter valued at $21,477,000. River Road Asset Management LLC increased its holdings in shares of LGI Homes by 45.9% in the third quarter. River Road Asset Management LLC now owns 695,455 shares of the financial services provider’s stock worth $82,425,000 after purchasing an additional 218,923 shares during the period. Bright Financial Advisors Inc. purchased a new stake in shares of LGI Homes in the first quarter worth $12,260,000. Finally, Marshall Wace LLP raised its position in shares of LGI Homes by 51.8% in the second quarter. Marshall Wace LLP now owns 269,798 shares of the financial services provider’s stock worth $24,144,000 after buying an additional 92,081 shares in the last quarter. 84.89% of the stock is currently owned by hedge funds and other institutional investors.

LGI Homes Stock Down 0.3 %

The company has a market cap of $2.58 billion, a P/E ratio of 13.36 and a beta of 1.97. The company has a debt-to-equity ratio of 0.78, a current ratio of 12.63 and a quick ratio of 0.49. The company has a 50 day moving average of $110.47 and a 200-day moving average of $102.57.

LGI Homes Company Profile

LGI Homes, Inc designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to large institutions looking to acquire single-family rental properties.