LGI Homes (NASDAQ:LGIH) Stock Crosses Below 200-Day Moving Average – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH)’s stock price passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $52.56 and traded as low as $42.38. LGI Homes shares last traded at $43.19, with a volume of 295,360 shares traded.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on LGIH shares. Capital One Financial set a $60.00 price objective on LGI Homes in a research note on Thursday, October 9th. Wedbush reaffirmed a “neutral” rating and set a $95.00 price target on shares of LGI Homes in a research note on Monday, October 6th. Weiss Ratings reiterated a “sell (d)” rating on shares of LGI Homes in a research report on Monday. Finally, JPMorgan Chase & Co. upped their target price on shares of LGI Homes from $47.00 to $48.50 and gave the company an “underweight” rating in a research report on Tuesday, October 14th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $72.13.

LGI Homes Price Performance

The firm has a market cap of $996.83 million, a P/E ratio of 9.53 and a beta of 1.85. The company has a debt-to-equity ratio of 0.84, a current ratio of 18.02 and a quick ratio of 0.58. The stock’s 50-day simple moving average is $46.96 and its two-hundred day simple moving average is $52.56.

LGI Homes (NASDAQ:LGIH) last released its earnings results on Tuesday, November 4th. The financial services provider reported $0.85 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.94 by ($0.09). The firm had revenue of $396.63 million during the quarter, compared to the consensus estimate of $421.66 million. LGI Homes had a return on equity of 5.50% and a net margin of 5.93%. Equities research analysts forecast that LGI Homes, Inc. will post 8.46 earnings per share for the current fiscal year.

Institutional Trading of LGI Homes

A number of large investors have recently made changes to their positions in the stock. Voss Capital LP grew its holdings in shares of LGI Homes by 33.3% in the third quarter. Voss Capital LP now owns 300,000 shares of the financial services provider’s stock worth $15,513,000 after purchasing an additional 75,000 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its stake in LGI Homes by 75.5% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider’s stock worth $28,000 after acquiring an additional 237 shares in the last quarter. Caxton Associates LLP grew its stake in LGI Homes by 2.2% in the 3rd quarter. Caxton Associates LLP now owns 34,290 shares of the financial services provider’s stock worth $1,773,000 after acquiring an additional 749 shares in the last quarter. Voloridge Investment Management LLC increased its position in shares of LGI Homes by 118.5% during the third quarter. Voloridge Investment Management LLC now owns 155,012 shares of the financial services provider’s stock worth $8,016,000 after acquiring an additional 84,079 shares during the period. Finally, Sherbrooke Park Advisers LLC bought a new stake in shares of LGI Homes during the third quarter valued at approximately $317,000. 84.89% of the stock is owned by hedge funds and other institutional investors.

About LGI Homes

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.