LGI Homes (NASDAQ:LGIH) Shares Gap Down – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH) gapped down prior to trading on Tuesday . The stock had previously closed at $104.61, but opened at $98.07. LGI Homes shares last traded at $98.09, with a volume of 49,452 shares trading hands.

Analysts Set New Price Targets

LGIH has been the subject of a number of recent research reports. Wedbush reaffirmed a “neutral” rating and set a $125.00 price target on shares of LGI Homes in a research note on Friday, October 4th. JPMorgan Chase & Co. cut their price objective on shares of LGI Homes from $95.00 to $93.00 and set an “underweight” rating on the stock in a research report on Wednesday, July 10th. Two analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the stock. According to MarketBeat, LGI Homes currently has an average rating of “Hold” and an average target price of $126.00.

LGI Homes Price Performance

The company’s 50-day simple moving average is $110.99 and its 200 day simple moving average is $102.14. The company has a quick ratio of 0.49, a current ratio of 12.63 and a debt-to-equity ratio of 0.78. The stock has a market capitalization of $2.39 billion, a price-to-earnings ratio of 12.04 and a beta of 1.95.

LGI Homes (NASDAQ:LGIH) last issued its quarterly earnings data on Tuesday, July 30th. The financial services provider reported $2.48 EPS for the quarter, beating analysts’ consensus estimates of $2.24 by $0.24. The business had revenue of $602.50 million for the quarter, compared to analyst estimates of $617.44 million. LGI Homes had a return on equity of 10.45% and a net margin of 8.78%. The firm’s revenue for the quarter was down 6.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.25 EPS. Equities research analysts forecast that LGI Homes, Inc. will post 8.82 EPS for the current year.

Hedge Funds Weigh In On LGI Homes

Institutional investors have recently modified their holdings of the company. Louisiana State Employees Retirement System grew its stake in LGI Homes by 1.0% in the 2nd quarter. Louisiana State Employees Retirement System now owns 10,300 shares of the financial services provider’s stock valued at $922,000 after buying an additional 100 shares during the last quarter. First Horizon Advisors Inc. increased its stake in shares of LGI Homes by 32.5% in the second quarter. First Horizon Advisors Inc. now owns 440 shares of the financial services provider’s stock worth $39,000 after purchasing an additional 108 shares during the period. Arizona State Retirement System increased its stake in shares of LGI Homes by 1.9% in the second quarter. Arizona State Retirement System now owns 5,940 shares of the financial services provider’s stock worth $532,000 after purchasing an additional 112 shares during the period. Sei Investments Co. lifted its position in shares of LGI Homes by 3.3% during the 1st quarter. Sei Investments Co. now owns 3,970 shares of the financial services provider’s stock worth $462,000 after purchasing an additional 126 shares during the last quarter. Finally, Inspire Investing LLC boosted its stake in LGI Homes by 5.5% during the 1st quarter. Inspire Investing LLC now owns 3,037 shares of the financial services provider’s stock valued at $353,000 after purchasing an additional 159 shares during the period. Institutional investors 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.