LGI Homes (NASDAQ:LGIH) Downgraded by StockNews.com

StockNews.com downgraded shares of LGI Homes (NASDAQ:LGIH) from a hold rating to a sell rating in a research note issued to investors on Wednesday.

Several other brokerages have also recently commented on LGIH. Wedbush reiterated an underperform rating and issued a $74.00 target price (down from $88.00) on shares of LGI Homes in a report on Tuesday, April 2nd. JMP Securities reissued a market outperform rating and issued a $160.00 price target on shares of LGI Homes in a research note on Friday, April 5th. Three 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 stock. According to MarketBeat, the stock currently has an average rating of Hold and an average target price of $110.50.

LGI Homes Stock Performance

Shares of LGIH stock opened at $93.38 on Wednesday. The business’s 50 day simple moving average is $110.44 and its 200 day simple moving average is $113.48. LGI Homes has a one year low of $84.15 and a one year high of $141.91. The stock has a market capitalization of $2.20 billion, a PE ratio of 11.09 and a beta of 1.83. The company has a debt-to-equity ratio of 0.67, a current ratio of 10.66 and a quick ratio of 0.42.

LGI Homes (NASDAQ:LGIH) last announced its earnings results on Tuesday, February 20th. The financial services provider reported $2.19 EPS for the quarter, missing the consensus estimate of $2.54 by ($0.35). LGI Homes had a net margin of 8.45% and a return on equity of 11.28%. The company had revenue of $608.41 million during the quarter, compared to the consensus estimate of $663.95 million. During the same quarter in the previous year, the company earned $1.45 earnings per share. The business’s revenue was up 24.6% on a year-over-year basis. As a group, research analysts forecast that LGI Homes will post 9.24 earnings per share for the current year.

Insider Buying and Selling at LGI Homes

In other LGI Homes news, CFO Charles Michael Merdian sold 6,361 shares of the business’s stock in a transaction that occurred on Monday, March 11th. The stock was sold at an average price of $111.95, for a total value of $712,113.95. Following the transaction, the chief financial officer now directly owns 9,458 shares of the company’s stock, valued at $1,058,823.10. The sale was disclosed in a legal filing with the SEC, which is available through this link. In other news, CFO Charles Michael Merdian sold 6,361 shares of the company’s stock in a transaction that occurred on Monday, March 11th. The stock was sold at an average price of $111.95, for a total transaction of $712,113.95. Following the transaction, the chief financial officer now directly owns 9,458 shares of the company’s stock, valued at $1,058,823.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Eric Thomas Lipar sold 10,869 shares of the company’s stock in a transaction that occurred on Monday, March 11th. The stock was sold at an average price of $111.95, for a total value of $1,216,784.55. Following the transaction, the chief executive officer now directly owns 627,430 shares in the company, valued at $70,240,788.50. The disclosure for this sale can be found here. Over the last three months, insiders have sold 26,435 shares of company stock valued at $2,944,291. 12.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On LGI Homes

Institutional investors have recently modified their holdings of the company. Dark Forest Capital Management LP acquired a new position in shares of LGI Homes during the first quarter worth approximately $27,000. GAMMA Investing LLC bought a new stake in LGI Homes during the fourth quarter worth $38,000. First Horizon Advisors Inc. grew its holdings in LGI Homes by 35.8% during the fourth quarter. First Horizon Advisors Inc. now owns 353 shares of the financial services provider’s stock worth $47,000 after buying an additional 93 shares in the last quarter. Mather Group LLC. bought a new stake in LGI Homes during the first quarter worth $47,000. Finally, Financial Management Professionals Inc. bought a new stake in LGI Homes during the third quarter worth $42,000. 84.89% of the stock is owned by institutional investors and hedge funds.

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.