LGI Homes (NASDAQ:LGIH) Stock Price Down 6.7% – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH) was down 6.7% on Monday . The company traded as low as $56.43 and last traded at $55.99. 34,465 shares were traded during mid-day trading, a decline of 92% from the average session volume of 427,797 shares. The stock had previously closed at $60.04.

Analysts Set New Price Targets

Several research firms have recently weighed in on LGIH. JPMorgan Chase & Co. increased their price objective on LGI Homes from $38.00 to $41.00 and gave the company an “underweight” rating in a report on Thursday, April 30th. Zacks Research upgraded shares of LGI Homes from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 21st. Wall Street Zen cut shares of LGI Homes from a “hold” rating to a “sell” rating in a research note on Saturday. Finally, Weiss Ratings raised shares of LGI Homes from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $72.75.

LGI Homes Trading Down 6.0%

The company has a 50 day simple moving average of $57.34 and a 200 day simple moving average of $50.41. 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 $1.31 billion, a PE ratio of 19.81 and a beta of 1.83.

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

Hedge Funds Weigh In On LGI Homes

A number of hedge funds and other institutional investors have recently bought and sold shares of LGIH. BlackRock Inc. acquired a new position in LGI Homes in the 2nd quarter valued at $226,799,000. Deutsche Bank AG purchased a new stake in shares of LGI Homes in the second quarter valued at about $3,002,000. Perigon Wealth Management LLC purchased a new stake in shares of LGI Homes in the second quarter valued at about $256,000. OneDigital Investment Advisors LLC acquired a new position in shares of LGI Homes during the second quarter worth about $2,739,000. Finally, Global Retirement Partners LLC acquired a new position in shares of LGI Homes during the second quarter worth about $366,000. 84.89% of the stock is currently owned by hedge funds and other institutional investors.

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.