LGI Homes (NASDAQ:LGIH) Shares Gap Down - Here's Why

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $104.61, but opened at $98.07. LGI Homes shares last traded at $98.09, with a volume of 49,452 shares changing hands.

Analyst Upgrades and Downgrades

Several analysts have commented on LGIH shares. JPMorgan Chase & Co. lowered their price objective on shares of LGI Homes from $95.00 to $93.00 and set an "underweight" rating on the stock in a research report on Wednesday, July 10th. Wedbush restated a "neutral" rating and set a $125.00 price target on shares of LGI Homes in a research report on Friday, October 4th. 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. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $126.00.

LGI Homes Trading Down 2.2 %

The company's 50 day simple moving average is $110.99 and its 200-day simple moving average is $102.14. The firm has a market cap of $2.41 billion, a P/E ratio of 12.04 and a beta of 1.95. The company has a quick ratio of 0.49, a current ratio of 12.63 and a debt-to-equity ratio of 0.78.

LGI Homes (NASDAQ:LGIH - Get Free Report) last posted its quarterly earnings results on Tuesday, July 30th. The financial services provider reported $2.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.24 by $0.24. LGI Homes had a net margin of 8.78% and a return on equity of 10.45%. The business had revenue of $602.50 million during the quarter, compared to analysts' expectations of $617.44 million. During the same quarter last year, the company posted $2.25 earnings per share. The business's quarterly revenue was down 6.6% on a year-over-year basis. As a group, research analysts predict that LGI Homes, Inc. will post 8.82 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Allspring Global Investments Holdings LLC acquired a new stake in LGI Homes in the third quarter valued at $43,000. First Horizon Advisors Inc. increased its stake in shares of LGI Homes by 32.5% in the second quarter. First Horizon Advisors Inc. now owns 440 shares of the financial services provider's stock worth $39,000 after buying an additional 108 shares during the last quarter. Innealta Capital LLC bought a new stake in shares of LGI Homes in the 2nd quarter valued at approximately $39,000. BI Asset Management Fondsmaeglerselskab A S acquired a new position in LGI Homes in the first quarter valued at approximately $52,000. Finally, CWM LLC lifted its position in LGI Homes by 27.5% in the 3rd quarter. CWM LLC now owns 867 shares of the financial services provider's stock valued at $103,000 after purchasing an additional 187 shares during the last quarter. Hedge funds and other institutional investors own 84.89% of the company's stock.

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.