LGI Homes, Inc. (NASDAQ:LGIH) Receives Consensus Rating of “Reduce” from Brokerages

LGI Homes, Inc. (NASDAQ:LGIH) has received a consensus recommendation of “Reduce” from the five analysts that are currently covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and one has assigned a buy rating to the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $110.50.

A number of analysts recently weighed in on LGIH shares. JMP Securities reaffirmed a “market outperform” rating and set a $160.00 target price on shares of LGI Homes in a report on Friday, April 5th. StockNews.com lowered shares of LGI Homes from a “hold” rating to a “sell” rating in a report on Wednesday, April 17th. Finally, Wedbush reaffirmed an “underperform” rating and set a $74.00 target price (down previously from $88.00) on shares of LGI Homes in a report on Tuesday, April 2nd.

LGI Homes Stock Performance

NASDAQ LGIH opened at $96.18 on Friday. The company’s 50 day moving average is $109.74 and its 200-day moving average is $113.70. LGI Homes has a 12-month low of $84.15 and a 12-month high of $141.91. The company has a quick ratio of 0.42, a current ratio of 10.66 and a debt-to-equity ratio of 0.67. The firm has a market cap of $2.27 billion, a P/E ratio of 11.42 and a beta of 1.83.

LGI Homes (NASDAQ:LGIH) last posted its quarterly earnings results on Tuesday, February 20th. The financial services provider reported $2.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.54 by ($0.35). LGI Homes had a net margin of 8.45% and a return on equity of 11.28%. The business had revenue of $608.41 million during the quarter, compared to the consensus estimate of $663.95 million. During the same period last year, the firm earned $1.45 EPS. The business’s revenue for the quarter was up 24.6% on a year-over-year basis. Sell-side analysts predict that LGI Homes will post 9.24 earnings per share for the current year.

Insider Transactions at LGI Homes

In other news, CFO Charles Michael Merdian sold 6,361 shares of the stock in a transaction on Monday, March 11th. The shares were sold at an average price of $111.95, for a total value of $712,113.95. Following the transaction, the chief financial officer now owns 9,458 shares of the company’s stock, valued at approximately $1,058,823.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other news, General Counsel Scott James Garber sold 1,212 shares of the company’s stock in a transaction on Monday, March 11th. The shares were sold at an average price of $111.95, for a total value of $135,683.40. Following the completion of the sale, the general counsel now owns 13,824 shares of the company’s stock, valued at approximately $1,547,596.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Charles Michael Merdian sold 6,361 shares of the company’s stock in a transaction on Monday, March 11th. The shares were sold at an average price of $111.95, for a total transaction of $712,113.95. Following the completion of the sale, the chief financial officer now directly owns 9,458 shares of the company’s stock, valued at approximately $1,058,823.10. The disclosure for this sale can be found here. Insiders have sold 26,435 shares of company stock valued at $2,944,291 in the last quarter. Insiders own 12.20% of the company’s stock.

Institutional Investors Weigh In On LGI Homes

A number of institutional investors have recently made changes to their positions in LGIH. Financial Management Professionals Inc. purchased a new stake in LGI Homes during the 3rd quarter valued at $42,000. SG Americas Securities LLC purchased a new stake in LGI Homes during the 3rd quarter valued at $946,000. 1900 Wealth Management LLC purchased a new stake in LGI Homes during the 3rd quarter valued at $389,000. BTC Capital Management Inc. boosted its position in LGI Homes by 22.3% during the 3rd quarter. BTC Capital Management Inc. now owns 2,626 shares of the financial services provider’s stock valued at $261,000 after buying an additional 479 shares during the period. Finally, Trellus Management Company LLC purchased a new stake in LGI Homes during the 3rd quarter valued at $249,000. 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.