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

LGI Homes, Inc. (NASDAQ:LGIH) fell 6.7% on Friday . The stock traded as low as $34.82 and last traded at $34.5950. 256,731 shares changed hands during mid-day trading, a decline of 40% from the average session volume of 428,679 shares. The stock had previously closed at $37.06.

Analyst Upgrades and Downgrades

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

LGI Homes Trading Down 7.7%

The business’s 50 day moving average price is $50.97 and its 200-day moving average price is $49.86. The company has a market cap of $791.39 million, a price-to-earnings ratio of 10.93 and a beta of 1.88. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.76 and a current ratio of 20.98.

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

Insider Buying and Selling at LGI Homes

In other news, CFO Charles Michael Merdian sold 7,211 shares of the company’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $42.04, for a total value of $303,150.44. Following the sale, the chief financial officer directly owned 20,540 shares in the company, valued at approximately $863,501.60. This represents a 25.98% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, COO Michael Larry Snider sold 6,000 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $42.04, for a total value of $252,240.00. Following the completion of the transaction, the chief operating officer directly owned 175,556 shares of the company’s stock, valued at approximately $7,380,374.24. The trade was a 3.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 22,451 shares of company stock valued at $943,840. 12.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Wasatch Advisors LP grew its holdings in shares of LGI Homes by 3.4% in the 2nd quarter. Wasatch Advisors LP now owns 1,467,855 shares of the financial services provider’s stock worth $75,624,000 after purchasing an additional 48,795 shares during the last quarter. River Road Asset Management LLC lifted its holdings in LGI Homes by 2.0% during the 4th quarter. River Road Asset Management LLC now owns 931,391 shares of the financial services provider’s stock valued at $40,013,000 after purchasing an additional 18,682 shares during the last quarter. CDAM UK Ltd boosted its position in LGI Homes by 15.4% in the fourth quarter. CDAM UK Ltd now owns 743,153 shares of the financial services provider’s stock valued at $31,926,000 after buying an additional 99,090 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its position in LGI Homes by 6.9% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 458,601 shares of the financial services provider’s stock valued at $19,701,000 after buying an additional 29,542 shares in the last quarter. Finally, Tributary Capital Management LLC grew its stake in LGI Homes by 93.1% during the third quarter. Tributary Capital Management LLC now owns 386,072 shares of the financial services provider’s stock worth $19,964,000 after buying an additional 186,159 shares during the last quarter. 84.89% of the stock is owned by 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.