LGI Homes (NASDAQ:LGIH) Stock Price Up 10.2% – Should You Buy?

LGI Homes, Inc. (NASDAQ:LGIH)’s stock price was up 10.2% during mid-day trading on Wednesday . The stock traded as high as $62.60 and last traded at $61.7960. Approximately 66,846 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 445,206 shares. The stock had previously closed at $56.06.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on LGIH. JPMorgan Chase & Co. raised their target price on LGI Homes from $38.00 to $41.00 and gave the company an “underweight” rating in a report on Thursday, April 30th. Zacks Research upgraded 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 research report on Saturday, June 6th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of LGI Homes in a research note on Friday, May 22nd. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $72.75.

LGI Homes Stock Up 11.2%

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 has a fifty day simple moving average of $47.69 and a two-hundred day simple moving average of $47.50. The company has a market capitalization of $1.45 billion, a price-to-earnings ratio of 20.42 and a beta of 1.87.

LGI Homes (NASDAQ:LGIH) last released its quarterly earnings data on Tuesday, April 28th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $328.22 million. During the same period in the prior year, the company posted $0.17 earnings per share. The business’s revenue for the quarter was down 9.0% compared to the same quarter last year. Equities analysts expect that LGI Homes, Inc. will post 2.76 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd increased its stake in LGI Homes by 75.5% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider’s stock worth $28,000 after purchasing an additional 237 shares in the last quarter. Los Angeles Capital Management LLC bought a new position in LGI Homes in the fourth quarter valued at approximately $29,000. Russell Investments Group Ltd. lifted its stake in LGI Homes by 106.6% in the second quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider’s stock valued at $30,000 after buying an additional 305 shares in the last quarter. Kemnay Advisory Services Inc. bought a new position in LGI Homes in the fourth quarter valued at approximately $32,000. Finally, Rockefeller Capital Management L.P. boosted its holdings in shares of LGI Homes by 1,759.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 874 shares of the financial services provider’s stock valued at $38,000 after buying an additional 827 shares during the period. 84.89% of the stock is currently owned by institutional investors.

About LGI Homes

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.