LGI Homes (NASDAQ:LGIH) Shares Gap Up – What’s Next?

Shares of LGI Homes, Inc. (NASDAQ:LGIH) gapped up before the market opened on Thursday . The stock had previously closed at $47.31, but opened at $50.27. LGI Homes shares last traded at $50.93, with a volume of 43,093 shares.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on LGIH. Zacks Research raised LGI Homes from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Wall Street Zen raised LGI Homes from a “sell” rating to a “hold” rating in a report on Saturday. JPMorgan Chase & Co. raised their price objective on LGI Homes from $38.00 to $41.00 and gave the stock an “underweight” rating in a report on Thursday, April 30th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of LGI Homes in a report on Friday, May 22nd. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $72.75.

LGI Homes Stock Performance

The company has a quick ratio of 0.70, a current ratio of 18.56 and a debt-to-equity ratio of 0.81. The stock has a fifty day moving average of $43.96 and a 200-day moving average of $47.14. The stock has a market cap of $1.17 billion, a PE ratio of 16.51 and a beta of 1.87.

LGI Homes (NASDAQ:LGIH) last released its quarterly earnings results on Tuesday, April 28th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.22. LGI Homes had a return on equity of 3.80% and a net margin of 4.22%.The firm had revenue of $319.74 million for the quarter, compared to analyst estimates of $328.22 million. During the same quarter last year, the company posted $0.17 earnings per share. The business’s revenue was down 9.0% on a year-over-year basis. On average, equities analysts forecast that LGI Homes, Inc. will post 2.76 EPS for the current year.

Insider Buying and Selling at LGI Homes

In other LGI Homes news, COO Michael Larry Snider sold 6,000 shares of LGI Homes stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $42.04, for a total value of $252,240.00. Following the sale, the chief operating officer owned 175,556 shares of the company’s stock, valued at approximately $7,380,374.24. The trade was a 3.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, General Counsel Scott James Garber sold 1,353 shares of LGI Homes stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $42.04, for a total value of $56,880.12. Following the completion of the sale, the general counsel directly owned 21,716 shares in the company, valued at $912,940.64. This represents a 5.87% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 22,451 shares of company stock valued at $943,840. 12.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On LGI Homes

Institutional investors have recently added to or reduced their stakes in the business. Voss Capital LP boosted its holdings in LGI Homes by 33.3% in the 3rd quarter. Voss Capital LP now owns 300,000 shares of the financial services provider’s stock valued at $15,513,000 after purchasing an additional 75,000 shares in the last quarter. JPMorgan Chase & Co. lifted its position in shares of LGI Homes by 244.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 61,384 shares of the financial services provider’s stock valued at $3,174,000 after acquiring an additional 43,572 shares during the period. SG Americas Securities LLC lifted its position in shares of LGI Homes by 1,158.0% during the 4th quarter. SG Americas Securities LLC now owns 91,471 shares of the financial services provider’s stock valued at $3,930,000 after acquiring an additional 84,200 shares during the period. Commons Capital LLC acquired a new stake in shares of LGI Homes during the 3rd quarter valued at approximately $593,000. Finally, Royce & Associates LP lifted its position in shares of LGI Homes by 53.2% during the 4th quarter. Royce & Associates LP now owns 87,729 shares of the financial services provider’s stock valued at $3,769,000 after acquiring an additional 30,461 shares during the period. Hedge funds and other institutional investors own 84.89% of the company’s stock.

LGI Homes Company Profile

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.