LGI Homes (NASDAQ:LGIH) Trading Down 5.8% – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH)’s stock price fell 5.8% during trading on Thursday . The company traded as low as $49.18 and last traded at $49.1850. 60,721 shares were traded during trading, a decline of 85% from the average daily volume of 406,988 shares. The stock had previously closed at $52.20.

Analyst Ratings Changes

A number of research firms recently commented on LGIH. Wall Street Zen raised LGI Homes from a “sell” rating to a “hold” rating in a report on Sunday, August 16th. Weiss Ratings raised shares of LGI Homes from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, September 4th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, LGI Homes has a consensus rating of “Hold” and a consensus target price of $72.75.

LGI Homes Stock Down 5.8%

The business has a 50-day moving average price of $57.89 and a 200 day moving average price of $50.63. The company has a current ratio of 17.74, a quick ratio of 0.61 and a debt-to-equity ratio of 0.74. The stock has a market capitalization of $1.14 billion, a P/E ratio of 17.25 and a beta of 1.84.

LGI Homes (NASDAQ:LGIH) last released its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.98 by $0.18. LGI Homes had a net margin of 3.88% and a return on equity of 3.55%. The company had revenue of $516.05 million for the quarter, compared to the consensus estimate of $489.23 million. During the same quarter in the prior year, the firm earned $1.36 earnings per share. LGI Homes’s revenue was up 6.7% on a year-over-year basis.

Hedge Funds Weigh In On LGI Homes

Several large investors have recently modified their holdings of LGIH. Atlas FRM LLC purchased a new position in LGI Homes during the 2nd quarter worth $61,578,560. OneDigital Investment Advisors LLC acquired a new stake in LGI Homes in the 2nd quarter worth approximately $2,739,000. Royce & Associates LP grew its position in LGI Homes by 53.2% during the 4th quarter. Royce & Associates LP now owns 87,729 shares of the financial services provider’s stock worth $3,769,000 after purchasing an additional 30,461 shares during the last quarter. Wasatch Advisors LP grew its position in LGI Homes by 16.1% during the 2nd quarter. Wasatch Advisors LP now owns 213,471 shares of the financial services provider’s stock worth $13,594,000 after purchasing an additional 29,679 shares during the last quarter. Finally, Quantbot Technologies LP acquired a new position in LGI Homes during the 2nd quarter valued at approximately $1,973,000. 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.