LGI Homes (NASDAQ:LGIH) Shares Gap Down – Time to Sell?

LGI Homes, Inc. (NASDAQ:LGIH) gapped down prior to trading on Tuesday. The stock had previously closed at $47.42, but opened at $44.00. LGI Homes shares last traded at $47.7210, with a volume of 170,505 shares changing hands.

Analyst Ratings Changes

LGIH has been the topic of a number of research analyst reports. Wall Street Zen raised shares of LGI Homes from a “sell” rating to a “hold” rating in a research note on Sunday, August 16th. Citigroup reiterated a “market outperform” rating on shares of LGI Homes in a report on Tuesday, October 6th. Finally, Weiss Ratings lowered LGI Homes from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday, September 21st. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, LGI Homes currently has a consensus rating of “Hold” and a consensus price target of $68.00.

LGI Homes Stock Performance

The company has a debt-to-equity ratio of 0.74, a current ratio of 17.74 and a quick ratio of 0.61. The company has a market capitalization of $1.09 billion, a price-to-earnings ratio of 16.45 and a beta of 1.86. The stock has a 50 day simple moving average of $48.40 and a two-hundred day simple moving average of $50.27.

LGI Homes (NASDAQ:LGIH) last released its quarterly earnings data on Tuesday, November 3rd. The financial services provider reported $1.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.72 by $0.33. LGI Homes had a return on equity of 3.55% and a net margin of 3.88%. The business had revenue of $444.46 million during the quarter, compared to analysts’ expectations of $438.21 million. During the same period in the prior year, the firm posted $0.85 EPS. The business’s quarterly revenue was up 12.1% compared to the same quarter last year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Compass Wealth Management LLC purchased a new position in shares of LGI Homes in the 3rd quarter valued at $33,000. Rockefeller Capital Management L.P. increased its position 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 in the last quarter. Allworth Financial LP purchased a new stake in shares of LGI Homes in the 2nd quarter worth about $56,000. Public Employees Retirement System of Ohio purchased a new stake in shares of LGI Homes in the 2nd quarter worth about $93,000. Finally, Integrated Wealth Concepts LLC acquired a new stake in LGI Homes in the 2nd quarter valued at about $111,000. Institutional investors and hedge funds own 84.89% of the company’s stock.

About LGI Homes

LGI Homes, Inc is a homebuilder that designs, constructs and sells single-family homes in planned residential communities across the United States. The company primarily serves entry-level and first-time homebuyers, while also offering homes for move-up buyers and active-adult customers. Its communities typically feature standardized home designs, modern amenities and financing-related support intended to simplify the homebuying process.

Founded in 2003, LGI Homes has expanded from its original Texas operations into numerous housing markets throughout the South, Southwest and other high-growth regions.