LGI Homes (NASDAQ:LGIH) Shares Gap Up – Here’s Why

LGI Homes, Inc. (NASDAQ:LGIH) shares gapped up before the market opened on Friday . The stock had previously closed at $65.02, but opened at $67.66. LGI Homes shares last traded at $65.84, with a volume of 62,559 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on LGIH. JMP Securities reduced their price objective on LGI Homes from $140.00 to $75.00 and set a “market outperform” rating for the company in a research report on Thursday, August 7th. Citigroup reaffirmed an “outperform” rating on shares of LGI Homes in a research report on Thursday, August 7th. JPMorgan Chase & Co. reduced their price target on LGI Homes from $52.00 to $47.00 and set an “underweight” rating for the company in a research report on Wednesday, July 9th. Finally, Wedbush reaffirmed a “neutral” rating and issued a $93.00 price target on shares of LGI Homes in a research report on Monday, July 7th. One research analyst has rated the stock with a sell rating, two have given a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $71.67.

LGI Homes Stock Up 0.8%

The business has a 50-day simple moving average of $54.41 and a two-hundred day simple moving average of $61.84. The company has a market cap of $1.51 billion, a price-to-earnings ratio of 9.88 and a beta of 1.69. The company has a quick ratio of 0.64, a current ratio of 18.18 and a debt-to-equity ratio of 0.85.

LGI Homes (NASDAQ:LGIH) last announced its quarterly earnings results on Tuesday, August 5th. The financial services provider reported $1.36 earnings per share for the quarter, topping analysts’ consensus estimates of $1.21 by $0.15. LGI Homes had a return on equity of 8.00% and a net margin of 7.63%. The company had revenue of $483.49 million during the quarter, compared to analysts’ expectations of $546.96 million. During the same quarter in the previous year, the firm earned $2.48 earnings per share. The business’s quarterly revenue was down 19.8% compared to the same quarter last year. As a group, equities analysts forecast that LGI Homes, Inc. will post 8.46 earnings per share for the current fiscal year.

Hedge Funds Weigh In On LGI Homes

Several large investors have recently made changes to their positions in LGIH. LPL Financial LLC lifted its position in shares of LGI Homes by 5.0% during the 4th quarter. LPL Financial LLC now owns 11,399 shares of the financial services provider’s stock worth $1,019,000 after purchasing an additional 546 shares during the last quarter. Wells Fargo & Company MN lifted its position in shares of LGI Homes by 7.7% during the 4th quarter. Wells Fargo & Company MN now owns 28,320 shares of the financial services provider’s stock worth $2,532,000 after purchasing an additional 2,013 shares during the last quarter. Invesco Ltd. lifted its position in shares of LGI Homes by 30.2% during the 4th quarter. Invesco Ltd. now owns 65,168 shares of the financial services provider’s stock worth $5,826,000 after purchasing an additional 15,098 shares during the last quarter. Raymond James Financial Inc. acquired a new position in shares of LGI Homes during the 4th quarter worth about $15,507,000. Finally, Sterling Capital Management LLC lifted its position 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 during the last quarter. Institutional investors and hedge funds own 84.89% of the company’s stock.

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.