LGI Homes (NASDAQ:LGIH) Reaches New 52-Week Low on Disappointing Earnings

LGI Homes, Inc. (NASDAQ:LGIH) reached a new 52-week low during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $75.91 and last traded at $75.99, with a volume of 442361 shares traded. The stock had previously closed at $77.80.

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 return on equity of 10.32% and a net margin of 8.75%. The firm had revenue of $557.40 million during the quarter, compared to analysts’ expectations of $588.56 million. During the same quarter in the previous year, the business earned $2.19 earnings per share. The company’s revenue for the quarter was down 8.4% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. JPMorgan Chase & Co. reduced their price objective on LGI Homes from $82.00 to $80.00 and set an “underweight” rating for the company in a research note on Tuesday, January 14th. JMP Securities restated a “market outperform” rating and issued a $160.00 price objective on shares of LGI Homes in a research note on Friday, January 10th. Wedbush reiterated a “neutral” rating and set a $115.00 price target (down from $125.00) on shares of LGI Homes in a research report on Tuesday, January 7th. Finally, Seaport Res Ptn upgraded LGI Homes from a “strong sell” rating to a “hold” rating in a research report on Monday, January 27th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $118.33.

Institutional Trading of LGI Homes

Institutional investors have recently bought and sold shares of the business. JPMorgan Chase & Co. grew its holdings in LGI Homes by 131.4% in the third quarter. JPMorgan Chase & Co. now owns 111,557 shares of the financial services provider’s stock valued at $13,222,000 after purchasing an additional 63,346 shares during the period. Citigroup Inc. grew its holdings in LGI Homes by 60.9% in the third quarter. Citigroup Inc. now owns 41,797 shares of the financial services provider’s stock valued at $4,954,000 after purchasing an additional 15,818 shares during the period. Wealth Enhancement Advisory Services LLC grew its holdings in LGI Homes by 5.8% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 3,232 shares of the financial services provider’s stock valued at $383,000 after purchasing an additional 176 shares during the period. Sanctuary Advisors LLC acquired a new stake in shares of LGI Homes in the third quarter worth approximately $334,000. Finally, Creative Planning acquired a new stake in shares of LGI Homes in the third quarter worth approximately $375,000. 84.89% of the stock is owned by institutional investors and hedge funds.

LGI Homes Price Performance

The company has a debt-to-equity ratio of 0.77, a current ratio of 12.72 and a quick ratio of 0.54. The stock has a 50 day moving average price of $86.83 and a 200-day moving average price of $100.60. The stock has a market capitalization of $1.73 billion, a price-to-earnings ratio of 8.83 and a beta of 2.03.

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.