StockNews.com Lowers LGI Homes (NASDAQ:LGIH) to Sell

StockNews.com cut shares of LGI Homes (NASDAQ:LGIH) from a hold rating to a sell rating in a research report released on Tuesday morning.

A number of other brokerages also recently weighed in on LGIH. JMP Securities reiterated a market outperform rating and issued a $160.00 price objective on shares of LGI Homes in a research report on Tuesday, February 27th. Wedbush decreased their price objective on shares of LGI Homes from $97.00 to $88.00 and set a neutral rating for the company in a research report on Wednesday, February 21st. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of Hold and an average price target of $114.00.

LGI Homes Price Performance

Shares of LGIH opened at $116.37 on Tuesday. LGI Homes has a 1-year low of $84.15 and a 1-year high of $141.91. The company has a debt-to-equity ratio of 0.67, a current ratio of 10.66 and a quick ratio of 0.42. The firm has a market capitalization of $2.74 billion, a PE ratio of 13.82 and a beta of 1.83. The company’s fifty day moving average price is $116.41 and its 200-day moving average price is $114.24.

LGI Homes (NASDAQ:LGIH) last posted its quarterly earnings results on Tuesday, February 20th. The financial services provider reported $2.19 EPS for the quarter, missing the consensus estimate of $2.54 by ($0.35). The business had revenue of $608.41 million during the quarter, compared to analysts’ expectations of $663.95 million. LGI Homes had a net margin of 8.45% and a return on equity of 11.28%. LGI Homes’s revenue for the quarter was up 24.6% compared to the same quarter last year. During the same period in the previous year, the company posted $1.45 earnings per share. On average, equities research analysts predict that LGI Homes will post 9.29 EPS for the current year.

Insider Buying and Selling

In related news, CFO Charles Michael Merdian sold 6,361 shares of the company’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $111.95, for a total transaction of $712,113.95. Following the completion of the sale, the chief financial officer now owns 9,458 shares of the company’s stock, valued at approximately $1,058,823.10. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In related news, CFO Charles Michael Merdian sold 6,361 shares of the company’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $111.95, for a total transaction of $712,113.95. Following the completion of the sale, the chief financial officer now owns 9,458 shares of the company’s stock, valued at approximately $1,058,823.10. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, General Counsel Scott James Garber sold 1,212 shares of the company’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $111.95, for a total transaction of $135,683.40. Following the sale, the general counsel now directly owns 13,824 shares of the company’s stock, valued at approximately $1,547,596.80. The disclosure for this sale can be found here. Insiders sold a total of 26,435 shares of company stock worth $2,944,291 in the last 90 days. Insiders own 12.40% of the company’s stock.

Institutional Trading of LGI Homes

Several hedge funds have recently made changes to their positions in LGIH. Dark Forest Capital Management LP purchased a new stake in shares of LGI Homes in the 1st quarter valued at approximately $27,000. GAMMA Investing LLC purchased a new stake in shares of LGI Homes in the 4th quarter valued at approximately $38,000. Financial Management Professionals Inc. purchased a new stake in shares of LGI Homes in the 3rd quarter valued at approximately $42,000. First Horizon Advisors Inc. grew its stake in shares of LGI Homes by 35.8% in the 4th quarter. First Horizon Advisors Inc. now owns 353 shares of the financial services provider’s stock valued at $47,000 after buying an additional 93 shares during the period. Finally, RiverPark Advisors LLC purchased a new stake in shares of LGI Homes in the 3rd quarter valued at approximately $49,000. Hedge funds and other institutional investors own 84.89% of the company’s stock.

About LGI Homes

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.