LGI Homes (NASDAQ:LGIH) Shares Down 7.9% – Here’s What Happened

LGI Homes, Inc. (NASDAQ:LGIH) dropped 7.9% on Tuesday . The company traded as low as $55.80 and last traded at $56.0110. Approximately 200,895 shares changed hands during mid-day trading, a decline of 48% from the average daily volume of 386,737 shares. The stock had previously closed at $60.83.

LGI Homes News Summary

Here are the key news stories impacting LGI Homes this week:

• Positive Sentiment: Q4 EPS slightly beat consensus ($0.97 vs. $0.96), showing profitability roughly in line with expectations and helping limit downside from the print. MarketBeat Q4 Earnings
• Positive Sentiment: Management debuted the Terrata build in California, which analysts say could expand LGIH’s addressable market and alter its investment narrative if the product scales profitably. This expansion is viewed as a potential long‑term growth catalyst. Yahoo – California Terrata
• Neutral Sentiment: Company issued formal 2026 guidance: 4,600–5,400 closings and a policy of stable pricing. Guidance provides visibility but is conservative relative to past volumes. Seeking Alpha – 2026 Guidance
• Neutral Sentiment: Full Q4 call transcript and press release are available for detail on backlog, cancellations and margin commentary — useful for investors who want management color on how incentives, incentives absorption and regional trends are tracking. Seeking Alpha – Q4 Transcript
• Negative Sentiment: Revenue missed estimates ($473.97M vs. $479.6M consensus) and was down ~15% year‑over‑year, signaling weaker demand and pressuring topline growth. Yahoo – Revenue Miss
• Negative Sentiment: Management emphasized affordability pressures and indicated stable pricing (i.e., limited scope for price increases), which plus lower closings guidance could compress revenue and earnings growth near term. GlobeNewswire – Q4 Results & Guidance
• Neutral Sentiment: Reported short‑interest data appear anomalous (showing 0 shares); no clear signal from shorts to explain the move. MarketBeat – Stock Page

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the company. Citizens Jmp increased their price objective on LGI Homes from $85.00 to $95.00 and gave the company a “market outperform” rating in a research note on Wednesday, January 7th. Weiss Ratings reiterated a “sell (d)” rating on shares of LGI Homes in a report on Monday, December 29th. Finally, Citigroup reissued an “outperform” rating on shares of LGI Homes in a report on Wednesday, January 7th. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $74.63.

LGI Homes Price Performance

The company has a debt-to-equity ratio of 0.84, a current ratio of 18.02 and a quick ratio of 0.58. The business has a 50 day moving average of $50.23 and a 200 day moving average of $52.30. The company has a market cap of $1.34 billion, a PE ratio of 12.84 and a beta of 1.89.

LGI Homes (NASDAQ:LGIH) last posted its earnings results on Tuesday, February 17th. The financial services provider reported $0.97 EPS for the quarter, topping the consensus estimate of $0.96 by $0.01. LGI Homes had a net margin of 5.93% and a return on equity of 5.50%. The firm had revenue of $473.97 million during the quarter, compared to analysts’ expectations of $479.60 million. During the same period last year, the company posted $2.15 EPS. The company’s quarterly revenue was down 15.0% compared to the same quarter last year. As a group, research analysts predict that LGI Homes, Inc. will post 8.46 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd grew its stake in LGI Homes by 75.5% in the third 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 during the period. Los Angeles Capital Management LLC bought a new position in shares of LGI Homes in the 4th quarter worth about $29,000. Russell Investments Group Ltd. boosted its stake in LGI Homes by 106.6% during the second quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider’s stock worth $30,000 after acquiring an additional 305 shares in the last quarter. Kemnay Advisory Services Inc. purchased a new stake in LGI Homes in the fourth quarter worth about $32,000. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in LGI Homes by 7,240.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,101 shares of the financial services provider’s stock worth $47,000 after purchasing an additional 1,086 shares during the period. Hedge funds and other institutional investors 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.