LGI Homes (NASDAQ:LGIH) Hits New 1-Year Low Following Weak Earnings

LGI Homes, Inc. (NASDAQ:LGIH)’s stock price hit a new 52-week low during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $39.70 and last traded at $40.73, with a volume of 511220 shares changing hands. The stock had previously closed at $40.81.

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 7.63% and a return on equity of 8.00%. The business had revenue of $396.63 million for the quarter, compared to analysts’ expectations of $421.66 million.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on LGIH shares. Citigroup reiterated a “market outperform” rating on shares of LGI Homes in a report on Wednesday, August 27th. Wedbush reiterated a “neutral” rating and set a $95.00 target price on shares of LGI Homes in a report on Monday, October 6th. JPMorgan Chase & Co. lifted their target price on shares of LGI Homes from $47.00 to $48.50 and gave the company an “underweight” rating in a report on Tuesday, October 14th. Weiss Ratings reissued a “sell (d+)” rating on shares of LGI Homes in a research report on Wednesday, October 8th. Finally, JMP Securities raised their price target on shares of LGI Homes from $75.00 to $85.00 and gave the company a “market outperform” rating in a research report on Wednesday, August 27th. Two investment analysts have rated the stock with a Buy rating, two have given 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 a consensus target price of $72.13.

Institutional Investors Weigh In On LGI Homes

Large investors have recently added to or reduced their stakes in the stock. MassMutual Private Wealth & Trust FSB grew its position in shares of LGI Homes by 453.1% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 531 shares of the financial services provider’s stock valued at $27,000 after acquiring an additional 435 shares during the period. Russell Investments Group Ltd. grew its position in shares of 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. Caitong International Asset Management Co. Ltd grew its position in shares of LGI Homes by 12,620.0% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 636 shares of the financial services provider’s stock valued at $42,000 after acquiring an additional 631 shares during the period. Signaturefd LLC grew its position in shares of LGI Homes by 284.4% during the 2nd quarter. Signaturefd LLC now owns 815 shares of the financial services provider’s stock valued at $42,000 after acquiring an additional 603 shares during the period. Finally, GAMMA Investing LLC grew its position in shares of LGI Homes by 219.1% during the 1st quarter. GAMMA Investing LLC now owns 887 shares of the financial services provider’s stock valued at $59,000 after acquiring an additional 609 shares during the period. Institutional investors own 84.89% of the company’s stock.

LGI Homes Stock Performance

The business’s 50-day moving average price is $52.30 and its 200-day moving average price is $54.29. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.64 and a current ratio of 18.18. The stock has a market cap of $1.12 billion, a P/E ratio of 7.33 and a beta of 1.75.

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.