LGI Homes (NASDAQ:LGIH) Hits New 12-Month Low – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH) hit a new 52-week low on Thursday . The company traded as low as $61.00 and last traded at $61.12, with a volume of 301073 shares trading hands. The stock had previously closed at $67.22.

Wall Street Analysts Forecast Growth

LGIH has been the topic of several research reports. JMP Securities reissued a “market outperform” rating and set a $160.00 target price on shares of LGI Homes in a research note on Friday, January 10th. JPMorgan Chase & Co. lowered their price objective on shares of LGI Homes from $82.00 to $80.00 and set an “underweight” rating for the company in a research note on Tuesday, January 14th. Wedbush restated a “neutral” rating and issued a $115.00 price objective (down previously from $125.00) on shares of LGI Homes in a report on Tuesday, January 7th. Finally, Seaport Res Ptn raised shares of LGI Homes from a “strong sell” rating to a “hold” rating in a research report on Monday, January 27th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $118.33.

LGI Homes Price Performance

The company has a current ratio of 12.72, a quick ratio of 0.54 and a debt-to-equity ratio of 0.77. The stock’s fifty day moving average price is $77.17 and its two-hundred day moving average price is $94.17. The firm has a market capitalization of $1.51 billion, a price-to-earnings ratio of 7.75 and a beta of 2.13.

LGI Homes (NASDAQ:LGIH) last posted its quarterly earnings results on Tuesday, February 25th. The financial services provider reported $2.15 earnings per share for the quarter, missing analysts’ consensus estimates of $2.31 by ($0.16). The business had revenue of $557.40 million during the quarter, compared to analyst estimates of $588.56 million. LGI Homes had a net margin of 8.75% and a return on equity of 10.32%. The firm’s quarterly revenue was down 8.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.19 earnings per share. Equities research analysts expect that LGI Homes, Inc. will post 8.46 EPS for the current year.

Insider Buying and Selling

In related news, COO Michael Larry Snider sold 1,105 shares of LGI Homes stock in a transaction on Monday, March 10th. The shares were sold at an average price of $75.94, for a total transaction of $83,913.70. Following the sale, the chief operating officer now directly owns 27,102 shares in the company, valued at $2,058,125.88. This trade represents a 3.92 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 12.30% of the stock is owned by company insiders.

Institutional Trading of LGI Homes

A number of hedge funds and other institutional investors have recently made changes to their positions in LGIH. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of LGI Homes by 20.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 44,345 shares of the financial services provider’s stock valued at $3,964,000 after purchasing an additional 7,508 shares during the period. iSAM Funds UK Ltd acquired a new stake in shares of LGI Homes in the fourth quarter valued at approximately $405,000. Squarepoint Ops LLC purchased a new position in shares of LGI Homes during the fourth quarter worth approximately $3,227,000. Two Sigma Advisers LP increased its holdings in shares of LGI Homes by 24.7% in the 4th quarter. Two Sigma Advisers LP now owns 20,700 shares of the financial services provider’s stock valued at $1,851,000 after acquiring an additional 4,100 shares during the period. Finally, Sherbrooke Park Advisers LLC acquired a new position in shares of LGI Homes in the 4th quarter valued at $329,000. Institutional investors and hedge funds own 84.89% of the company’s stock.

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.