LGI Homes (NASDAQ:LGIH) Announces Earnings Results, Beats Expectations By $0.18 EPS

LGI Homes (NASDAQ:LGIH) released its earnings results on Tuesday. The financial services provider reported $1.16 earnings per share for the quarter, topping the consensus estimate of $0.98 by $0.18, Zacks reports. LGI Homes had a net margin of 4.22% and a return on equity of 3.80%. The company had revenue of $516.05 million for the quarter, compared to the consensus estimate of $489.23 million. During the same quarter in the previous year, the firm earned $1.36 EPS. LGI Homes’s revenue was up 6.7% compared to the same quarter last year.

LGI Homes Stock Performance

Shares of LGIH stock traded up $3.93 during trading hours on Tuesday, hitting $60.03. The company’s stock had a trading volume of 175,720 shares, compared to its average volume of 427,412. The stock has a market cap of $1.39 billion, a PE ratio of 19.67 and a beta of 1.83. LGI Homes has a 12-month low of $33.55 and a 12-month high of $69.50. The company has a 50 day moving average of $56.36 and a 200 day moving average of $50.22. The company has a current ratio of 18.56, a quick ratio of 0.70 and a debt-to-equity ratio of 0.81.

Institutional Investors Weigh In On LGI Homes

Several hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd grew its holdings 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 worth $28,000 after acquiring an additional 237 shares during the period. Los Angeles Capital Management LLC acquired a new position in LGI Homes in the fourth quarter valued at approximately $29,000. Russell Investments Group Ltd. boosted its position in LGI Homes by 106.6% in the 2nd quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider’s stock worth $30,000 after purchasing an additional 305 shares in the last quarter. Kemnay Advisory Services Inc. purchased a new stake in LGI Homes in the 4th quarter worth approximately $32,000. Finally, Northwestern Mutual Wealth Management Co. grew its stake in shares of LGI Homes by 7,240.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,101 shares of the financial services provider’s stock worth $47,000 after purchasing an additional 1,086 shares during the period. 84.89% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms have issued reports on LGIH. Zacks Research raised shares of LGI Homes from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Wall Street Zen raised LGI Homes from a “sell” rating to a “hold” rating in a research report on Saturday, June 6th. JPMorgan Chase & Co. raised their target price on LGI Homes from $38.00 to $41.00 and gave the stock an “underweight” rating in a research note on Thursday, April 30th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of LGI Homes in a research report on Friday, May 22nd. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, LGI Homes has an average rating of “Hold” and an average target price of $72.75.

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.