LGI Homes (NASDAQ:LGIH) Trading Up 2.5% - Should You Buy?

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) shares rose 2.5% during mid-day trading on Friday . The stock traded as high as $60.58 and last traded at $62.72. Approximately 14,849 shares traded hands during mid-day trading, a decline of 94% from the average daily volume of 229,256 shares. The stock had previously closed at $61.18.

Analyst Upgrades and Downgrades

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

LGI Homes Stock Up 6.5 %

The company has a market cap of $1.41 billion, a P/E ratio of 7.24 and a beta of 1.99. The stock has a 50-day moving average of $75.17 and a 200 day moving average of $92.68. The company has a debt-to-equity ratio of 0.77, a current ratio of 12.72 and a quick ratio of 0.54.

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

Insider Activity at LGI Homes

In other LGI Homes news, COO Michael Larry Snider sold 1,105 shares of the business's stock in a transaction dated Monday, March 10th. The stock was sold at an average price of $75.94, for a total transaction of $83,913.70. Following the completion of the transaction, the chief operating officer now owns 27,102 shares of the company's stock, valued at approximately $2,058,125.88. The trade was a 3.92 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 12.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On LGI Homes

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Blue Trust Inc. boosted its position in LGI Homes by 112.9% in the fourth quarter. Blue Trust Inc. now owns 347 shares of the financial services provider's stock valued at $31,000 after buying an additional 184 shares in the last quarter. Sterling Capital Management LLC lifted its stake in shares of LGI Homes by 801.5% in the 4th quarter. Sterling Capital Management LLC now owns 613 shares of the financial services provider's stock valued at $55,000 after acquiring an additional 545 shares during the last quarter. KBC Group NV lifted its stake in shares of LGI Homes by 51.6% in the 4th 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. NBC Securities Inc. boosted its holdings in shares of LGI Homes by 111,600.0% during the 1st quarter. NBC Securities Inc. now owns 2,234 shares of the financial services provider's stock valued at $148,000 after acquiring an additional 2,232 shares in the last quarter. Finally, Summit Investment Advisors Inc. grew its position in LGI Homes by 6.9% during the 4th 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. 84.89% of the stock is owned by institutional investors.

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.