LGI Homes (NASDAQ:LGIH) Shares Down 7.9% – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH) shares dropped 7.9% on Tuesday . The stock traded as low as $55.80 and last traded at $56.0110. Approximately 200,895 shares changed hands during mid-day trading, a decline of 48% from the average daily volume of 386,737 shares. The stock had previously closed at $60.83.

Key LGI Homes News

Here are the key news stories impacting LGI Homes this week:

• Positive Sentiment: Q4 EPS slightly beat consensus ($0.97 vs. $0.96), showing profitability roughly in line with expectations and helping limit downside from the print. MarketBeat Q4 Earnings
• Positive Sentiment: Management debuted the Terrata build in California, which analysts say could expand LGIH’s addressable market and alter its investment narrative if the product scales profitably. This expansion is viewed as a potential long‑term growth catalyst. Yahoo – California Terrata
• Neutral Sentiment: Company issued formal 2026 guidance: 4,600–5,400 closings and a policy of stable pricing. Guidance provides visibility but is conservative relative to past volumes. Seeking Alpha – 2026 Guidance
• Neutral Sentiment: Full Q4 call transcript and press release are available for detail on backlog, cancellations and margin commentary — useful for investors who want management color on how incentives, incentives absorption and regional trends are tracking. Seeking Alpha – Q4 Transcript
• Negative Sentiment: Revenue missed estimates ($473.97M vs. $479.6M consensus) and was down ~15% year‑over‑year, signaling weaker demand and pressuring topline growth. Yahoo – Revenue Miss
• Negative Sentiment: Management emphasized affordability pressures and indicated stable pricing (i.e., limited scope for price increases), which plus lower closings guidance could compress revenue and earnings growth near term. GlobeNewswire – Q4 Results & Guidance
• Neutral Sentiment: Reported short‑interest data appear anomalous (showing 0 shares); no clear signal from shorts to explain the move. MarketBeat – Stock Page

Wall Street Analyst Weigh In

A number of research firms recently weighed in on LGIH. Citigroup reiterated an “outperform” rating on shares of LGI Homes in a research note on Wednesday, January 7th. Citizens Jmp lifted their price target on LGI Homes from $85.00 to $95.00 and gave the company a “market outperform” rating in a research report on Wednesday, January 7th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of LGI Homes in a report on Monday, December 29th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $74.63.

LGI Homes Price Performance

The company has a debt-to-equity ratio of 0.84, a current ratio of 18.02 and a quick ratio of 0.58. The firm has a market capitalization of $1.34 billion, a PE ratio of 12.84 and a beta of 1.89. The business’s 50 day moving average is $50.23 and its two-hundred day moving average is $52.30.

LGI Homes (NASDAQ:LGIH) last posted its quarterly earnings data on Tuesday, February 17th. The financial services provider reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.01. LGI Homes had a net margin of 5.93% and a return on equity of 5.50%. The firm had revenue of $473.97 million for the quarter, compared to analysts’ expectations of $479.60 million. During the same quarter last year, the company posted $2.15 EPS. The business’s quarterly revenue was down 15.0% on a year-over-year basis. As a group, research analysts anticipate that LGI Homes, Inc. will post 8.46 EPS for the current year.

Hedge Funds Weigh In On LGI Homes

Large investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd grew its position in LGI Homes by 75.5% during the third quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider’s stock valued at $28,000 after acquiring an additional 237 shares during the last quarter. Versant Capital Management Inc raised its position in LGI Homes by 35.1% in the 3rd quarter. Versant Capital Management Inc now owns 947 shares of the financial services provider’s stock worth $49,000 after purchasing an additional 246 shares during the period. PNC Financial Services Group Inc. lifted its stake in LGI Homes by 4.8% in the second quarter. PNC Financial Services Group Inc. now owns 5,976 shares of the financial services provider’s stock worth $308,000 after purchasing an additional 275 shares during the last quarter. Illinois Municipal Retirement Fund boosted its position in LGI Homes by 2.6% during the third quarter. Illinois Municipal Retirement Fund now owns 10,970 shares of the financial services provider’s stock valued at $567,000 after buying an additional 275 shares during the period. Finally, Russell Investments Group Ltd. grew its stake in shares of LGI Homes by 106.6% during the second quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider’s stock valued at $30,000 after buying an additional 305 shares during the last quarter. 84.89% of the stock is owned by hedge funds and other institutional investors.

About LGI Homes

LGI Homes, Inc (NASDAQ: LGIH) is a residential homebuilder primarily focused on serving first-time and first-time move-up homebuyers in the United States. The company specializes in the acquisition, development and sale of affordable single-family homes and townhomes. LGI Homes operates through an integrated model that encompasses land sourcing, lot development, home construction, and post-closing customer support including warranty services.

In addition to its core homebuilding activities, LGI Homes offers ancillary services to streamline the homebuying process for its customers.