LGI Homes (NASDAQ:LGIH) Stock Crosses Below Two Hundred Day Moving Average – Time to Sell?

LGI Homes, Inc. (NASDAQ:LGIH) passed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $50.30 and traded as low as $40.65. LGI Homes shares last traded at $40.93, with a volume of 523,499 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on LGIH shares. Citizens Jmp raised their price objective on LGI Homes from $85.00 to $95.00 and gave the stock a “market outperform” rating in a research note on Wednesday, January 7th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of LGI Homes in a report on Monday, December 29th. Finally, Citigroup reiterated an “outperform” rating on shares of LGI Homes in a research report on Wednesday, January 7th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $74.63.

LGI Homes Stock Down 1.9%

The firm has a market cap of $946.71 million, a PE ratio of 13.08 and a beta of 1.88. The company has a debt-to-equity ratio of 0.79, a current ratio of 20.98 and a quick ratio of 0.76. The business has a fifty day moving average price of $51.65 and a two-hundred day moving average price of $50.30.

LGI Homes (NASDAQ:LGIH) last announced its quarterly earnings data on Tuesday, February 17th. The financial services provider reported $0.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.01. The firm had revenue of $473.97 million during the quarter, compared to the consensus estimate of $479.60 million. LGI Homes had a return on equity of 4.08% and a net margin of 4.25%.The business’s revenue for the quarter was down 15.0% on a year-over-year basis. During the same period in the prior year, the business earned $2.15 EPS. On average, analysts anticipate that LGI Homes, Inc. will post 8.46 EPS for the current fiscal year.

Insider Activity

In other news, General Counsel Scott James Garber sold 1,353 shares of the business’s stock in a transaction on Monday, March 9th. The shares were sold at an average price of $42.04, for a total transaction of $56,880.12. Following the transaction, the general counsel directly owned 21,716 shares in the company, valued at $912,940.64. The trade was a 5.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Charles Michael Merdian sold 7,211 shares of the company’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $42.04, for a total transaction of $303,150.44. Following the completion of the transaction, the chief financial officer directly owned 20,540 shares in the company, valued at $863,501.60. This trade represents a 25.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 22,451 shares of company stock worth $943,840 in the last ninety days. Corporate insiders own 12.30% of the company’s stock.

Institutional Investors Weigh In On LGI Homes

Institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd lifted its position in shares of LGI Homes by 75.5% in the third quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider’s stock worth $28,000 after buying an additional 237 shares during the last quarter. Versant Capital Management Inc lifted its holdings in LGI Homes by 35.1% in the 3rd quarter. Versant Capital Management Inc now owns 947 shares of the financial services provider’s stock worth $49,000 after purchasing an additional 246 shares during the last quarter. PNC Financial Services Group Inc. boosted its position in LGI Homes by 4.8% during the second quarter. PNC Financial Services Group Inc. now owns 5,976 shares of the financial services provider’s stock worth $308,000 after purchasing an additional 275 shares during the period. Illinois Municipal Retirement Fund boosted its position in LGI Homes by 2.6% during the third quarter. Illinois Municipal Retirement Fund now owns 10,970 shares of the financial services provider’s stock worth $567,000 after purchasing an additional 275 shares during the period. Finally, Russell Investments Group Ltd. grew its holdings in LGI Homes by 106.6% during the second quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider’s stock valued at $30,000 after purchasing an additional 305 shares during the last quarter. 84.89% of the stock is currently owned by institutional investors and hedge funds.

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.