Wedbush Issues Negative Forecast for LGI Homes Earnings

LGI Homes, Inc. (NASDAQ:LGIH - Free Report) - Stock analysts at Wedbush cut their Q1 2025 earnings estimates for LGI Homes in a research note issued to investors on Tuesday, February 25th. Wedbush analyst J. Mccanless now anticipates that the financial services provider will post earnings of $0.86 per share for the quarter, down from their prior estimate of $1.48. Wedbush has a "Neutral" rating and a $115.00 price target on the stock. The consensus estimate for LGI Homes' current full-year earnings is $8.46 per share. Wedbush also issued estimates for LGI Homes' Q2 2025 earnings at $1.74 EPS, Q3 2025 earnings at $2.42 EPS, Q4 2025 earnings at $2.92 EPS, FY2025 earnings at $7.94 EPS, Q1 2026 earnings at $0.99 EPS, Q2 2026 earnings at $1.99 EPS, Q3 2026 earnings at $2.65 EPS, Q4 2026 earnings at $3.16 EPS and FY2026 earnings at $8.79 EPS.

LGI Homes (NASDAQ:LGIH - Get Free Report) last released its quarterly earnings results on Tuesday, February 25th. The financial services provider reported $2.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.31 by ($0.16). The firm 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%. The company's quarterly revenue was down 8.4% compared to the same quarter last year. During the same period last year, the firm earned $2.19 EPS.

LGIH has been the subject of a number of other reports. JMP Securities reissued a "market outperform" rating and issued a $160.00 price target on shares of LGI Homes in a report on Friday, January 10th. JPMorgan Chase & Co. decreased their price target on shares of LGI Homes from $82.00 to $80.00 and set an "underweight" rating on the stock in a research note on Tuesday, January 14th. Finally, Seaport Res Ptn upgraded shares of 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 given a hold rating and one has given a buy rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $118.33.

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LGI Homes Price Performance

Shares of LGIH stock traded up $0.75 during trading hours on Friday, hitting $71.08. The company's stock had a trading volume of 297,899 shares, compared to its average volume of 228,602. 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 business has a fifty day moving average of $86.08 and a 200-day moving average of $100.18. LGI Homes has a twelve month low of $68.66 and a twelve month high of $125.83. The stock has a market cap of $1.66 billion, a price-to-earnings ratio of 8.52 and a beta of 2.03.

Hedge Funds Weigh In On LGI Homes

A number of hedge funds have recently made changes to their positions in the stock. Summit Investment Advisors Inc. raised its holdings in LGI Homes by 6.9% in the fourth quarter. Summit Investment Advisors Inc. now owns 2,185 shares of the financial services provider's stock valued at $195,000 after buying an additional 141 shares during the period. Mariner LLC raised its position in LGI Homes by 3.2% in the fourth quarter. Mariner LLC now owns 4,581 shares of the financial services provider's stock valued at $410,000 after purchasing an additional 143 shares during the period. KBC Group NV lifted its stake in shares of LGI Homes by 29.8% during the third quarter. KBC Group NV now owns 732 shares of the financial services provider's stock worth $87,000 after purchasing an additional 168 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its position in shares of 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 worth $383,000 after buying an additional 176 shares during the period. Finally, US Bancorp DE grew its stake in shares of LGI Homes by 6.7% in the third quarter. US Bancorp DE now owns 2,857 shares of the financial services provider's stock valued at $339,000 after buying an additional 179 shares in the last quarter. Institutional investors and hedge funds 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.