LGI Homes (NASDAQ:LGIH) Reaches New 1-Year Low – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH)’s stock price reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $53.13 and last traded at $54.15, with a volume of 264409 shares. The stock had previously closed at $55.50.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. JMP Securities reissued a “market outperform” rating and issued a $160.00 target price on shares of LGI Homes in a report on Friday, January 10th. JPMorgan Chase & Co. decreased their price objective on shares of LGI Homes from $82.00 to $80.00 and set an “underweight” rating on the stock in a report on Tuesday, January 14th. Seaport Res Ptn upgraded shares of LGI Homes from a “strong sell” rating to a “hold” rating in a research report on Monday, January 27th. Finally, Wedbush reiterated a “neutral” rating and set a $115.00 price target (down from $125.00) on shares of LGI Homes in a research report on Tuesday, January 7th. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $118.33.

LGI Homes Stock Up 3.9 %

The firm has a market capitalization of $1.32 billion, a PE ratio of 6.75 and a beta of 1.99. The firm’s 50-day moving average is $70.43 and its 200 day moving average is $89.74. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.54 and a current ratio of 12.72.

LGI Homes (NASDAQ:LGIH) last issued its quarterly earnings data on Tuesday, February 25th. The financial services provider reported $2.15 earnings per share for the quarter, missing analysts’ consensus estimates of $2.31 by ($0.16). LGI Homes had a return on equity of 10.32% and a net margin of 8.75%. The business had revenue of $557.40 million for the quarter, compared to analysts’ expectations of $588.56 million. During the same period last year, the business earned $2.19 earnings per share. The company’s revenue for the quarter was down 8.4% on a year-over-year basis. As a group, research analysts forecast that LGI Homes, Inc. will post 8.46 earnings per share for the current fiscal year.

Insider Transactions at LGI Homes

In related news, COO Michael Larry Snider sold 1,105 shares of the company’s stock in a transaction on Monday, March 10th. The stock was sold at an average price of $75.94, for a total value of $83,913.70. Following the completion of the transaction, the chief operating officer now directly owns 27,102 shares in the company, valued at approximately $2,058,125.88. This represents a 3.92 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 12.30% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Janney Montgomery Scott LLC grew its position in LGI Homes by 22.4% during the first quarter. Janney Montgomery Scott LLC now owns 3,406 shares of the financial services provider’s stock valued at $226,000 after acquiring an additional 623 shares during the period. Wealth Enhancement Advisory Services LLC raised its position in shares of LGI Homes by 213.5% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 10,234 shares of the financial services provider’s stock valued at $680,000 after purchasing an additional 6,970 shares in the last quarter. Handelsbanken Fonder AB boosted its stake in LGI Homes by 34.8% during the 1st quarter. Handelsbanken Fonder AB now owns 10,065 shares of the financial services provider’s stock valued at $669,000 after acquiring an additional 2,600 shares during the last quarter. SG Americas Securities LLC lifted its holdings in LGI Homes by 134.0% during the 1st quarter. SG Americas Securities LLC now owns 4,477 shares of the financial services provider’s stock worth $298,000 after buying an additional 2,564 shares during the last quarter. Finally, GAMMA Investing LLC lifted its position in shares of LGI Homes by 219.1% in the 1st quarter. GAMMA Investing LLC now owns 887 shares of the financial services provider’s stock worth $59,000 after buying an additional 609 shares during the last quarter. 84.89% of the stock is currently owned by hedge funds and other institutional investors.

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.