LGI Homes (NASDAQ:LGIH) Sets New 52-Week Low - Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s share price reached a new 52-week low on Thursday . The company 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.

Wall Street Analyst Weigh In

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

LGI Homes Stock Performance

The company has a current ratio of 12.72, a quick ratio of 0.54 and a debt-to-equity ratio of 0.77. The firm has a market capitalization of $1.56 billion, a PE ratio of 7.97 and a beta of 2.13. The stock's 50 day moving average price is $79.87 and its two-hundred day moving average price is $95.59.

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LGI Homes (NASDAQ:LGIH - Get Free Report) last posted its quarterly earnings data on Tuesday, February 25th. The financial services provider reported $2.15 EPS for the quarter, missing analysts' consensus estimates of $2.31 by ($0.16). LGI Homes had a net margin of 8.75% and a return on equity of 10.32%. The company had revenue of $557.40 million for the quarter, compared to analyst estimates of $588.56 million. During the same period in the previous year, the business earned $2.19 EPS. The firm's revenue was down 8.4% on a year-over-year basis. On average, equities analysts expect that LGI Homes, Inc. will post 8.46 earnings per share for the current year.

Insider Transactions at LGI Homes

In related news, COO Michael Larry Snider sold 1,105 shares of the business's stock in a transaction that occurred on Monday, March 10th. The shares were sold at an average price of $75.94, for a total value of $83,913.70. Following the completion of the sale, the chief operating officer now directly owns 27,102 shares in the company, valued at approximately $2,058,125.88. The trade was a 3.92 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 12.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Blue Trust Inc. increased its holdings in LGI Homes by 112.9% in the 4th quarter. Blue Trust Inc. now owns 347 shares of the financial services provider's stock valued at $31,000 after purchasing an additional 184 shares in the last quarter. Sterling Capital Management LLC lifted its holdings in LGI Homes by 801.5% in the 4th quarter. Sterling Capital Management LLC now owns 613 shares of the financial services provider's stock worth $55,000 after buying an additional 545 shares in the last quarter. KBC Group NV grew its stake in shares of LGI Homes by 51.6% during the fourth quarter. KBC Group NV now owns 1,110 shares of the financial services provider's stock valued at $99,000 after acquiring an additional 378 shares in the last quarter. Summit Investment Advisors Inc. increased its position in shares of LGI Homes by 6.9% during the fourth quarter. Summit Investment Advisors Inc. now owns 2,185 shares of the financial services provider's stock worth $195,000 after acquiring an additional 141 shares during the last quarter. Finally, Tower Research Capital LLC TRC boosted its holdings in LGI Homes by 10.6% in the fourth quarter. Tower Research Capital LLC TRC now owns 2,210 shares of the financial services provider's stock valued at $198,000 after purchasing an additional 212 shares during the last quarter. Institutional investors and hedge funds own 84.89% of the company's stock.

LGI Homes Company Profile

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.