LGI Homes (NASDAQ:LGIH) Reaches New 12-Month Low – Time to Sell?

LGI Homes, Inc. (NASDAQ:LGIH)’s share price reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $61.00 and last traded at $61.12, with a volume of 301073 shares. The stock had previously closed at $67.22.

Analyst Ratings Changes

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

LGI Homes Stock Down 9.0 %

The company has a quick ratio of 0.54, a current ratio of 12.72 and a debt-to-equity ratio of 0.77. The stock has a market capitalization of $1.43 billion, a P/E ratio of 7.34 and a beta of 2.13. The company has a fifty day moving average price of $78.30 and a 200-day moving average price of $94.77.

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

Insider Buying and Selling at LGI Homes

In other LGI Homes news, COO Michael Larry Snider sold 1,105 shares of the company’s stock in a transaction that occurred on Monday, March 10th. The stock was sold at an average price of $75.94, for a total transaction of $83,913.70. Following the sale, the chief operating officer now directly owns 27,102 shares in the company, valued at $2,058,125.88. This represents a 3.92 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. 12.30% of the stock is owned by company insiders.

Institutional Trading of LGI Homes

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Zurcher Kantonalbank Zurich Cantonalbank increased its position in LGI Homes by 44.2% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,676 shares of the financial services provider’s stock valued at $554,000 after acquiring an additional 1,434 shares during the last quarter. Paloma Partners Management Co purchased a new stake in LGI Homes in the 3rd quarter worth about $238,000. Holocene Advisors LP lifted its stake in LGI Homes by 386.2% in the third quarter. Holocene Advisors LP now owns 130,968 shares of the financial services provider’s stock worth $15,522,000 after purchasing an additional 104,030 shares during the last quarter. HighTower Advisors LLC purchased a new position in shares of LGI Homes during the third quarter valued at approximately $229,000. Finally, Hotchkis & Wiley Capital Management LLC purchased a new position in shares of LGI Homes during the third quarter valued at approximately $6,859,000. Hedge funds and other institutional investors own 84.89% of the company’s stock.

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.