LGI Homes (NASDAQ:LGIH) Hits New 1-Year Low – Should You Sell?

Shares of LGI Homes, Inc. (NASDAQ:LGIH) hit a new 52-week low during trading on Thursday . The stock traded as low as $68.45 and last traded at $68.77, with a volume of 67467 shares trading hands. The stock had previously closed at $69.75.

Analysts Set New Price Targets

A number of analysts have recently weighed in on LGIH shares. JPMorgan Chase & Co. reduced their price objective on shares of LGI Homes from $82.00 to $80.00 and set an “underweight” rating for the company in a research note on Tuesday, January 14th. Seaport Res Ptn upgraded shares of LGI Homes from a “strong sell” rating to a “hold” rating in a report on Monday, January 27th. Wedbush reaffirmed a “neutral” rating and issued a $115.00 price target (down from $125.00) on shares of LGI Homes in a research report on Tuesday, January 7th. Finally, JMP Securities reissued a “market outperform” rating and set a $160.00 price objective on shares of LGI Homes in a research report on Friday, January 10th. Two investment 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.com, LGI Homes has an average rating of “Hold” and a consensus price target of $118.33.

LGI Homes Stock Down 0.8 %

The firm’s 50-day simple moving average is $80.89 and its 200-day simple moving average is $96.17. The company has a market capitalization of $1.62 billion, a price-to-earnings ratio of 8.28 and a beta of 2.13. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.54 and a current ratio of 12.72.

LGI Homes (NASDAQ:LGIH) last issued its quarterly earnings results on Tuesday, February 25th. The financial services provider reported $2.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.31 by ($0.16). LGI Homes had a net margin of 8.75% and a return on equity of 10.32%. The firm had revenue of $557.40 million for the quarter, compared to the consensus estimate of $588.56 million. During the same quarter in the prior year, the firm earned $2.19 earnings per share. The company’s revenue was down 8.4% on a year-over-year basis. Sell-side analysts forecast that LGI Homes, Inc. will post 8.46 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Michael Larry Snider sold 1,105 shares of the firm’s stock in a transaction dated Monday, March 10th. The shares were sold at an average price of $75.94, for a total transaction of $83,913.70. Following the completion of the transaction, the chief operating officer now directly owns 27,102 shares of the company’s stock, valued at approximately $2,058,125.88. This trade 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. Corporate insiders own 12.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its holdings in shares of LGI Homes by 2.4% in the 4th quarter. Vanguard Group Inc. now owns 2,274,907 shares of the financial services provider’s stock worth $203,377,000 after buying an additional 54,039 shares in the last quarter. Dimensional Fund Advisors LP grew its position in LGI Homes by 0.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,504,384 shares of the financial services provider’s stock valued at $134,491,000 after acquiring an additional 6,706 shares during the period. Wasatch Advisors LP lifted its holdings in shares of LGI Homes by 2.7% during the fourth quarter. Wasatch Advisors LP now owns 1,395,710 shares of the financial services provider’s stock valued at $124,776,000 after acquiring an additional 36,608 shares during the period. Khrom Capital Management LLC boosted its stake in shares of LGI Homes by 19.4% in the 4th quarter. Khrom Capital Management LLC now owns 1,095,801 shares of the financial services provider’s stock valued at $97,965,000 after purchasing an additional 177,698 shares in the last quarter. Finally, Disciplined Growth Investors Inc. MN raised its position in LGI Homes by 3.7% in the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 939,504 shares of the financial services provider’s stock valued at $111,350,000 after purchasing an additional 33,306 shares during the last quarter. Institutional investors and hedge funds own 84.89% of the company’s stock.

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.