LGI Homes (NASDAQ:LGIH) Trading Down 5.5% on Disappointing Earnings

LGI Homes, Inc. (NASDAQ:LGIH) shares traded down 5.5% during mid-day trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $56.97 and last traded at $55.98. 26,661 shares traded hands during trading, a decline of 89% from the average session volume of 237,211 shares. The stock had previously closed at $59.25.

The financial services provider reported $0.17 EPS for the quarter, missing analysts’ consensus estimates of $0.75 by ($0.58). LGI Homes had a return on equity of 10.32% and a net margin of 8.75%. The company had revenue of $351.42 million during the quarter, compared to analysts’ expectations of $380.07 million. During the same period in the prior year, the company posted $0.72 earnings per share. The company’s revenue was down 10.1% on a year-over-year basis.

Wall Street Analysts Forecast Growth

LGIH has been the topic of a number of recent research reports. Seaport Res Ptn raised LGI Homes from a “strong sell” rating to a “hold” rating in a report on Monday, January 27th. JMP Securities reissued a “market outperform” rating and set a $160.00 target price on shares of LGI Homes in a research report on Friday, January 10th. JPMorgan Chase & Co. lowered their price target on shares of LGI Homes from $82.00 to $80.00 and set an “underweight” rating on the stock in a report on Tuesday, January 14th. Finally, Wedbush restated a “neutral” rating and issued a $115.00 price target (down from $125.00) on shares of LGI Homes in a report on Tuesday, January 7th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and one has given a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $118.33.

Insider Buying and Selling

In other news, COO Michael Larry Snider sold 1,105 shares of the company’s stock in a transaction on Monday, March 10th. The shares were sold at an average price of $75.94, for a total value of $83,913.70. Following the sale, the chief operating officer now directly owns 27,102 shares of the company’s stock, valued at $2,058,125.88. This represents a 3.92 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 12.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On LGI Homes

Several hedge funds have recently modified their holdings of the company. Summit Investment Advisors Inc. boosted its stake in shares of LGI Homes by 6.9% during the 4th quarter. Summit Investment Advisors Inc. now owns 2,185 shares of the financial services provider’s stock worth $195,000 after acquiring an additional 141 shares in the last quarter. Mariner LLC lifted its stake in LGI Homes by 3.2% in the 4th quarter. Mariner LLC now owns 4,581 shares of the financial services provider’s stock valued at $410,000 after buying an additional 143 shares in the last quarter. Blue Trust Inc. lifted its stake in LGI Homes by 112.9% in the 4th quarter. Blue Trust Inc. now owns 347 shares of the financial services provider’s stock valued at $31,000 after buying an additional 184 shares in the last quarter. Tower Research Capital LLC TRC lifted its stake in LGI Homes by 10.6% in the 4th quarter. Tower Research Capital LLC TRC now owns 2,210 shares of the financial services provider’s stock valued at $198,000 after buying an additional 212 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. lifted its stake in LGI Homes by 8.8% in the 1st quarter. Envestnet Portfolio Solutions Inc. now owns 3,023 shares of the financial services provider’s stock valued at $201,000 after buying an additional 245 shares in the last quarter. 84.89% of the stock is owned by hedge funds and other institutional investors.

LGI Homes Price Performance

The stock has a market capitalization of $1.31 billion, a PE ratio of 6.69 and a beta of 1.99. The stock’s 50 day moving average is $66.89 and its two-hundred day moving average is $86.78. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.54 and a current ratio of 12.72.

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.