LGI Homes (NASDAQ:LGIH) Trading Up 7% – Should You Buy?

LGI Homes, Inc. (NASDAQ:LGIH) shares shot up 7% on Tuesday . The stock traded as high as $54.42 and last traded at $54.1150. 45,341 shares changed hands during trading, a decline of 90% from the average session volume of 449,875 shares. The stock had previously closed at $50.59.

Wall Street Analyst Weigh In

LGIH has been the topic of several research analyst reports. JPMorgan Chase & Co. lifted 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. Wall Street Zen raised LGI Homes from a “sell” rating to a “hold” rating in a report on Saturday. Zacks Research upgraded LGI Homes from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 21st. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of LGI Homes in a research note on Friday, May 22nd. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $72.75.

LGI Homes Stock Up 5.7%

The stock has a market capitalization of $1.24 billion, a price-to-earnings ratio of 17.54 and a beta of 1.87. 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 business’s 50-day moving average is $44.18 and its two-hundred day moving average is $47.18.

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

Institutional Investors Weigh In On LGI Homes

A number of hedge funds have recently modified their holdings of the company. Wasatch Advisors LP raised its stake in LGI Homes by 3.4% during the second quarter. Wasatch Advisors LP now owns 1,467,855 shares of the financial services provider’s stock worth $75,624,000 after purchasing an additional 48,795 shares during the period. Altshuler Shaham Ltd grew its stake in shares of LGI Homes by 5.4% in the 1st quarter. Altshuler Shaham Ltd now owns 1,087,263 shares of the financial services provider’s stock valued at $42,980,000 after buying an additional 55,465 shares during the period. River Road Asset Management LLC increased its holdings in shares of LGI Homes by 2.0% during the 4th quarter. River Road Asset Management LLC now owns 931,391 shares of the financial services provider’s stock worth $40,013,000 after buying an additional 18,682 shares during the last quarter. CDAM UK Ltd increased its holdings in shares of LGI Homes by 15.4% during the 4th quarter. CDAM UK Ltd now owns 743,153 shares of the financial services provider’s stock worth $31,926,000 after buying an additional 99,090 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in shares of LGI Homes by 6.9% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 458,601 shares of the financial services provider’s stock valued at $19,701,000 after buying an additional 29,542 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.