LGI Homes (NASDAQ:LGIH) Cut to “Sell” at StockNews.com

StockNews.com cut shares of LGI Homes (NASDAQ:LGIH) from a hold rating to a sell rating in a research note released on Friday.

A number of other brokerages have also recently commented on LGIH. JMP Securities reaffirmed a market outperform rating and set a $160.00 price target on shares of LGI Homes in a research report on Friday, April 5th. Wedbush reaffirmed an underperform rating and set a $74.00 price objective (down from $88.00) on shares of LGI Homes in a report on Tuesday, April 2nd. Three analysts have rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $110.50.

LGI Homes Stock Performance

NASDAQ LGIH opened at $96.73 on Friday. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.42 and a current ratio of 12.36. The company has a market capitalization of $2.28 billion, a PE ratio of 12.09 and a beta of 1.86. LGI Homes has a 52-week low of $84.15 and a 52-week high of $141.91. The company has a 50-day simple moving average of $104.84 and a 200 day simple moving average of $113.66.

LGI Homes (NASDAQ:LGIH) last issued its quarterly earnings results on Tuesday, April 30th. The financial services provider reported $0.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.02 by ($0.30). LGI Homes had a return on equity of 10.43% and a net margin of 8.37%. The company had revenue of $390.90 million for the quarter, compared to analysts’ expectations of $400.00 million. During the same quarter in the previous year, the business earned $1.14 EPS. The company’s revenue for the quarter was down 19.8% on a year-over-year basis. On average, research analysts predict that LGI Homes will post 9.25 EPS for the current year.

Insider Activity at LGI Homes

In other LGI Homes news, CEO Eric Thomas Lipar sold 10,869 shares of the company’s stock in a transaction that occurred on Monday, March 11th. The stock was sold at an average price of $111.95, for a total value of $1,216,784.55. Following the completion of the sale, the chief executive officer now owns 627,430 shares of the company’s stock, valued at $70,240,788.50. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. In related news, COO Michael Larry Snider sold 7,993 shares of LGI Homes stock in a transaction on Monday, March 11th. The shares were sold at an average price of $110.06, for a total value of $879,709.58. Following the transaction, the chief operating officer now owns 19,016 shares in the company, valued at approximately $2,092,900.96. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Eric Thomas Lipar sold 10,869 shares of the company’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $111.95, for a total transaction of $1,216,784.55. Following the sale, the chief executive officer now owns 627,430 shares of the company’s stock, valued at $70,240,788.50. The disclosure for this sale can be found here. In the last three months, insiders have sold 26,435 shares of company stock valued at $2,944,291. Corporate insiders own 12.40% of the company’s stock.

Institutional Investors Weigh In On LGI Homes

Hedge funds and other institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC bought a new position in LGI Homes during the 4th quarter worth approximately $38,000. First Horizon Advisors Inc. grew its holdings in shares of LGI Homes by 35.8% in the fourth quarter. First Horizon Advisors Inc. now owns 353 shares of the financial services provider’s stock worth $47,000 after purchasing an additional 93 shares during the last quarter. Mather Group LLC. purchased a new position in shares of LGI Homes in the first quarter worth $47,000. RiverPark Advisors LLC purchased a new position in shares of LGI Homes in the third quarter worth $49,000. Finally, BI Asset Management Fondsmaeglerselskab A S bought a new stake in LGI Homes during the 1st quarter valued at $52,000. 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.