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

LGI Homes, Inc. (NASDAQ:LGIH) shares hit a new 52-week low on Thursday . The company 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.

Wall Street Analysts Forecast Growth

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

LGI Homes Trading Down 9.0 %

The firm has a 50 day simple moving average of $78.30 and a 200 day simple moving average of $94.77. The company has a current ratio of 12.72, a quick ratio of 0.54 and a debt-to-equity ratio of 0.77. The firm has a market capitalization of $1.43 billion, a PE ratio of 7.34 and a beta of 2.13.

LGI Homes (NASDAQ:LGIH) last released its quarterly earnings data on Tuesday, February 25th. The financial services provider reported $2.15 EPS for the quarter, missing the consensus estimate of $2.31 by ($0.16). The business 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%. LGI Homes’s quarterly revenue was down 8.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.19 earnings per share. Equities analysts expect that LGI Homes, Inc. will post 8.46 earnings per share for the current fiscal year.

Insider Buying and Selling at LGI Homes

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its position in shares of LGI Homes by 2.4% during the 4th quarter. Vanguard Group Inc. now owns 2,274,907 shares of the financial services provider’s stock valued at $203,377,000 after purchasing an additional 54,039 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of LGI Homes by 0.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,504,384 shares of the financial services provider’s stock worth $134,491,000 after acquiring an additional 6,706 shares during the last quarter. Wasatch Advisors LP grew its position in shares of LGI Homes by 2.7% during the 4th quarter. Wasatch Advisors LP now owns 1,395,710 shares of the financial services provider’s stock valued at $124,776,000 after acquiring an additional 36,608 shares during the period. Khrom Capital Management LLC increased its stake in shares of LGI Homes by 19.4% in the 4th quarter. Khrom Capital Management LLC now owns 1,095,801 shares of the financial services provider’s stock worth $97,965,000 after purchasing an additional 177,698 shares in the last quarter. Finally, Disciplined Growth Investors Inc. MN raised its holdings in LGI Homes by 3.7% in the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 939,504 shares of the financial services provider’s stock worth $111,350,000 after purchasing an additional 33,306 shares during the period. 84.89% of the stock is owned by hedge funds and other institutional investors.

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.