LGI Homes (NASDAQ:LGIH) Trading Down 6.7% – Time to Sell?

LGI Homes, Inc. (NASDAQ:LGIH) shares were down 6.7% on Tuesday . The stock traded as low as $37.00 and last traded at $36.2440. Approximately 56,202 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 464,035 shares. The stock had previously closed at $38.85.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on LGIH shares. Citigroup reaffirmed an “outperform” rating on shares of LGI Homes in a research report on Wednesday, January 7th. Citizens Jmp increased their price target on LGI Homes from $85.00 to $95.00 and gave the company a “market outperform” rating in a report on Wednesday, January 7th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of LGI Homes in a report on Monday, December 29th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $74.63.

LGI Homes Trading Down 5.1%

The stock has a market capitalization of $853.03 million, a price-to-earnings ratio of 11.76 and a beta of 1.86. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.76 and a current ratio of 20.98. The firm has a fifty day moving average of $47.71 and a 200-day moving average of $47.94.

LGI Homes (NASDAQ:LGIH) last announced its quarterly earnings results on Tuesday, February 17th. The financial services provider reported $0.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.01. LGI Homes had a return on equity of 4.08% and a net margin of 4.25%.The firm had revenue of $473.97 million during the quarter, compared to the consensus estimate of $479.60 million. During the same period in the prior year, the firm earned $2.15 EPS. The firm’s quarterly revenue was down 15.0% compared to the same quarter last year. As a group, equities analysts predict that LGI Homes, Inc. will post 8.46 earnings per share for the current fiscal year.

Insider Activity

In other news, COO Michael Larry Snider sold 6,000 shares of the firm’s stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $42.04, for a total transaction of $252,240.00. Following the completion of the sale, the chief operating officer directly owned 175,556 shares in the company, valued at $7,380,374.24. This trade represents a 3.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Charles Michael Merdian sold 7,211 shares of the firm’s stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $42.04, for a total value of $303,150.44. Following the sale, the chief financial officer owned 20,540 shares of the company’s stock, valued at $863,501.60. This represents a 25.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 22,451 shares of company stock worth $943,840 over the last ninety days. Corporate insiders own 12.60% of the company’s stock.

Institutional Trading of LGI Homes

Several large investors have recently modified their holdings of the business. Rockefeller Capital Management L.P. grew its stake in shares of LGI Homes by 1,759.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 874 shares of the financial services provider’s stock valued at $38,000 after acquiring an additional 827 shares in the last quarter. River Road Asset Management LLC grew its stake in shares of LGI Homes by 2.0% during the fourth quarter. River Road Asset Management LLC now owns 931,391 shares of the financial services provider’s stock valued at $40,013,000 after acquiring an additional 18,682 shares in the last quarter. Virtu Financial LLC lifted its position in shares of LGI Homes by 18.8% during the fourth quarter. Virtu Financial LLC now owns 7,889 shares of the financial services provider’s stock worth $339,000 after purchasing an additional 1,246 shares during the last quarter. Invesco Ltd. lifted its position in shares of LGI Homes by 49.6% during the fourth quarter. Invesco Ltd. now owns 123,081 shares of the financial services provider’s stock worth $5,288,000 after purchasing an additional 40,832 shares during the last quarter. Finally, VARCOV Co. bought a new position in shares of LGI Homes during the fourth quarter worth about $282,000. 84.89% of the stock is currently owned by institutional investors and hedge funds.

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.