LGI Homes (NASDAQ:LGIH) Shares Down 5% – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH)’s stock price dropped 5% on Friday . The stock traded as low as $44.43 and last traded at $43.9840. Approximately 44,486 shares traded hands during trading, a decline of 87% from the average daily volume of 346,203 shares. The stock had previously closed at $46.28.

Analyst Upgrades and Downgrades

LGIH has been the subject of a number of recent research reports. Weiss Ratings reiterated a “sell (d+)” rating on shares of LGI Homes in a research note on Monday, December 8th. JMP Securities increased their price objective 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. Citigroup reissued a “market outperform” rating on shares of LGI Homes in a research report on Wednesday, August 27th. Capital One Financial set a $60.00 price target on shares of LGI Homes in a report on Thursday, October 9th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of LGI Homes from $47.00 to $48.50 and gave the stock an “underweight” rating in a report on Tuesday, October 14th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $72.13.

LGI Homes Trading Down 4.2%

The firm has a market cap of $1.02 billion, a P/E ratio of 9.78 and a beta of 1.85. The business’s 50 day moving average is $47.19 and its 200-day moving average is $52.84. The company has a quick ratio of 0.58, a current ratio of 18.02 and a debt-to-equity ratio of 0.84.

LGI Homes (NASDAQ:LGIH) last announced its quarterly earnings data on Tuesday, November 4th. The financial services provider reported $0.85 earnings per share for the quarter, missing the consensus estimate of $0.94 by ($0.09). The company had revenue of $396.63 million for the quarter, compared to analyst estimates of $421.66 million. LGI Homes had a return on equity of 5.50% and a net margin of 5.93%. As a group, analysts forecast that LGI Homes, Inc. will post 8.46 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in LGIH. Wasatch Advisors LP increased its holdings in shares of LGI Homes by 3.4% in the 2nd quarter. Wasatch Advisors LP now owns 1,467,855 shares of the financial services provider’s stock valued at $75,624,000 after acquiring an additional 48,795 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in LGI Homes by 5.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 395,810 shares of the financial services provider’s stock worth $26,309,000 after purchasing an additional 19,017 shares during the period. Tributary Capital Management LLC increased its stake in LGI Homes by 93.1% during the third quarter. Tributary Capital Management LLC now owns 386,072 shares of the financial services provider’s stock valued at $19,964,000 after purchasing an additional 186,159 shares during the last quarter. Voss Capital LP raised its holdings in shares of LGI Homes by 33.3% during the third quarter. Voss Capital LP now owns 300,000 shares of the financial services provider’s stock worth $15,513,000 after purchasing an additional 75,000 shares during the period. Finally, Goldman Sachs Group Inc. lifted its position in shares of LGI Homes by 5.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 250,142 shares of the financial services provider’s stock worth $16,627,000 after buying an additional 12,524 shares during the last quarter. Institutional investors and hedge funds 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.