LGI Homes (NASDAQ:LGIH) Reaches New 1-Year Low - What's Next?

Shares of LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) hit a new 52-week low during trading on Thursday . The company traded as low as $61.00 and last traded at $61.12, with a volume of 301073 shares traded. The stock had previously closed at $67.22.

Wall Street Analysts Forecast Growth

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

LGI Homes Trading Down 9.3 %

The company's 50-day moving average is $75.17 and its 200-day moving average is $92.68. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.54 and a current ratio of 12.72. The firm has a market cap of $1.33 billion, a price-to-earnings ratio of 6.80 and a beta of 1.99.

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

Insider Activity

In other news, COO Michael Larry Snider sold 1,105 shares of the firm's stock in a transaction dated Monday, March 10th. The shares were sold at an average price of $75.94, for a total value of $83,913.70. Following the transaction, the chief operating officer now owns 27,102 shares of the company's stock, valued at approximately $2,058,125.88. This trade represents a 3.92 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 12.30% of the company's stock.

Hedge Funds Weigh In On LGI Homes

Several large investors have recently bought and sold shares of the business. Blue Trust Inc. boosted its stake in LGI Homes by 112.9% during the 4th quarter. Blue Trust Inc. now owns 347 shares of the financial services provider's stock worth $31,000 after acquiring an additional 184 shares during the last quarter. Sterling Capital Management LLC raised its stake in shares of LGI Homes by 801.5% during the 4th quarter. Sterling Capital Management LLC now owns 613 shares of the financial services provider's stock worth $55,000 after purchasing an additional 545 shares in the last quarter. KBC Group NV lifted its stake in LGI Homes by 51.6% in 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 during the last quarter. Summit Investment Advisors Inc. grew its holdings in 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 purchasing an additional 141 shares during the period. Finally, Tower Research Capital LLC TRC boosted its stake in shares of LGI Homes by 10.6% during the 4th quarter. Tower Research Capital LLC TRC now owns 2,210 shares of the financial services provider's stock worth $198,000 after acquiring an additional 212 shares during the period. 84.89% of the stock is currently owned by institutional investors and hedge funds.

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.