LGI Homes (NASDAQ:LGIH) Stock Falls 4.2% – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH)’s share price dropped 4.2% on Wednesday. The company traded as low as $41.70 and last traded at $42.1090. 61,843 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 398,565 shares. The stock had previously closed at $43.94.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Citigroup reiterated a “market outperform” rating on shares of LGI Homes in a report on Tuesday, October 6th. Weiss Ratings cut LGI Homes from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, September 21st. Finally, Wall Street Zen upgraded LGI Homes from a “sell” rating to a “hold” rating in a research report on Sunday, August 16th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, LGI Homes currently has a consensus rating of “Hold” and a consensus price target of $68.00.

LGI Homes Price Performance

The firm has a market cap of $956.86 million, a PE ratio of 13.48 and a beta of 1.88. The stock’s fifty day moving average price is $46.52 and its 200-day moving average price is $49.95. The company has a debt-to-equity ratio of 0.71, a current ratio of 15.63 and a quick ratio of 0.57.

LGI Homes (NASDAQ:LGIH) last issued its earnings results on Tuesday, November 3rd. The financial services provider reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $0.72 by $0.33. The business had revenue of $444.46 million during the quarter, compared to analysts’ expectations of $438.21 million. LGI Homes had a net margin of 4.05% and a return on equity of 3.75%. The company’s quarterly revenue was up 12.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.85 earnings per share.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Legal & General Group Plc acquired a new position in LGI Homes during the second quarter worth $3,085,000. Bank of America Corp DE acquired a new stake in shares of LGI Homes in the 2nd quarter worth $5,048,000. Quantbot Technologies LP acquired a new stake in shares of LGI Homes in the 2nd quarter worth $1,973,000. OneDigital Investment Advisors LLC purchased a new position in shares of LGI Homes during the 2nd quarter worth $2,739,000. Finally, Atlas FRM LLC purchased a new position in shares of LGI Homes during the 2nd quarter worth $61,578,560. 84.89% of the stock is owned by hedge funds and other institutional investors.

LGI Homes Company Profile

LGI Homes, Inc. is a residential homebuilder headquartered in The Woodlands, Texas. Founded in 2003, the company develops and sells newly built homes, including single-family houses and townhomes, in planned communities. Its homes are marketed to a range of buyers, including first-time buyers and households seeking larger homes. The company operates under the LGI Homes and Terrata Homes brands, offering homes across markets in multiple U.S. states. Its communities feature a variety of home designs and locations, with offerings that vary by market.