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

LGI Homes (NASDAQ:LGIH) was downgraded by StockNews.com from a “hold” rating to a “sell” rating in a note issued to investors on Friday.

Other analysts also recently issued reports about the stock. JMP Securities reaffirmed a “market outperform” rating and set a $160.00 price objective on shares of LGI Homes in a report on Friday, April 5th. Wedbush reiterated an “underperform” rating and set a $74.00 target price (down from $88.00) on shares of LGI Homes in a research note on Tuesday, April 2nd. Three research analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $110.50.

LGI Homes Price Performance

NASDAQ LGIH opened at $92.29 on Friday. The company has a current ratio of 12.36, a quick ratio of 0.42 and a debt-to-equity ratio of 0.74. The company has a fifty day simple moving average of $105.17 and a 200 day simple moving average of $113.35. The company has a market cap of $2.18 billion, a P/E ratio of 11.54 and a beta of 1.86. LGI Homes has a 1 year low of $84.15 and a 1 year high of $141.91.

LGI Homes (NASDAQ:LGIH) last posted its quarterly earnings data on Tuesday, April 30th. The financial services provider reported $0.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.02 by ($0.30). The firm had revenue of $390.90 million for the quarter, compared to the consensus estimate of $400.00 million. LGI Homes had a return on equity of 10.43% and a net margin of 8.37%. LGI Homes’s quarterly revenue was down 19.8% on a year-over-year basis. During the same period in the prior year, the company posted $1.14 earnings per share. On average, sell-side analysts predict that LGI Homes will post 9.24 EPS for the current year.

Insider Activity at LGI Homes

In other news, CFO Charles Michael Merdian sold 6,361 shares of the stock in a transaction on Monday, March 11th. The shares were sold at an average price of $111.95, for a total value of $712,113.95. Following the completion of the transaction, the chief financial officer now owns 9,458 shares in the company, valued at approximately $1,058,823.10. The sale was disclosed in a filing with the SEC, which is available at this link. In other news, CFO Charles Michael Merdian sold 6,361 shares of the stock in a transaction on Monday, March 11th. The shares were sold at an average price of $111.95, for a total value of $712,113.95. Following the completion of the transaction, the chief financial officer now owns 9,458 shares in the company, valued at approximately $1,058,823.10. The sale was disclosed in a filing with the SEC, which is available at this link. Also, COO Michael Larry Snider sold 7,993 shares of the stock in a transaction on Monday, March 11th. The shares were sold at an average price of $110.06, for a total transaction of $879,709.58. Following the completion of the transaction, the chief operating officer now owns 19,016 shares of the company’s stock, valued at approximately $2,092,900.96. The disclosure for this sale can be found here. Insiders sold a total of 26,435 shares of company stock worth $2,944,291 in the last ninety days. 12.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On LGI Homes

A number of hedge funds have recently made changes to their positions in the business. GAMMA Investing LLC acquired a new stake in shares of LGI Homes during the 4th quarter worth about $38,000. First Horizon Advisors Inc. increased its position in shares of LGI Homes by 35.8% during the 4th quarter. First Horizon Advisors Inc. now owns 353 shares of the financial services provider’s stock worth $47,000 after purchasing an additional 93 shares in the last quarter. Mather Group LLC. acquired a new stake in shares of LGI Homes during the 1st quarter worth about $47,000. RiverPark Advisors LLC acquired a new stake in shares of LGI Homes during the 3rd quarter worth about $49,000. Finally, International Assets Investment Management LLC bought a new stake in LGI Homes during the 4th quarter worth about $71,000. Institutional investors and hedge funds own 84.89% of the company’s stock.

LGI Homes Company Profile

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.