LGI Homes (NASDAQ:LGIH) Reaches New 52-Week Low on Disappointing Earnings

Shares of LGI Homes, Inc. (NASDAQ:LGIH) hit a new 52-week low during trading on Tuesday following a dissappointing earnings announcement. The company traded as low as $75.91 and last traded at $75.99, with a volume of 442361 shares. The stock had previously closed at $77.80.

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 analysts’ expectations of $588.56 million. LGI Homes had a return on equity of 10.32% and a net margin of 8.75%. The firm’s revenue was down 8.4% on a year-over-year basis. During the same period last year, the company earned $2.19 earnings per share.

Analyst Upgrades and Downgrades

LGIH has been the topic of several recent research reports. Seaport Res Ptn upgraded LGI Homes from a “strong sell” rating to a “hold” rating in a report on Monday, January 27th. Wedbush reaffirmed a “neutral” rating and issued a $115.00 price objective (down previously from $125.00) on shares of LGI Homes in a research report on Tuesday, January 7th. JMP Securities reissued a “market outperform” rating and set a $160.00 price target on shares of LGI Homes in a research report on Friday, January 10th. Finally, JPMorgan Chase & Co. dropped their price target 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. Two 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. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $118.33.

Institutional Investors Weigh In On LGI Homes

A number of institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in LGI Homes by 2.4% during the fourth quarter. Vanguard Group Inc. now owns 2,274,907 shares of the financial services provider’s stock valued at $203,377,000 after purchasing an additional 54,039 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in LGI Homes by 0.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,504,384 shares of the financial services provider’s stock valued at $134,491,000 after purchasing an additional 6,706 shares in the last quarter. Wasatch Advisors LP boosted its position in LGI Homes by 2.7% during the fourth quarter. Wasatch Advisors LP now owns 1,395,710 shares of the financial services provider’s stock valued at $124,776,000 after purchasing an additional 36,608 shares in the last quarter. Khrom Capital Management LLC boosted its position in LGI Homes by 19.4% during the fourth quarter. Khrom Capital Management LLC now owns 1,095,801 shares of the financial services provider’s stock valued at $97,965,000 after purchasing an additional 177,698 shares in the last quarter. Finally, Disciplined Growth Investors Inc. MN boosted its position in LGI Homes by 3.7% during the third quarter. Disciplined Growth Investors Inc. MN now owns 939,504 shares of the financial services provider’s stock valued at $111,350,000 after purchasing an additional 33,306 shares in the last quarter. Institutional investors own 84.89% of the company’s stock.

LGI Homes Stock Performance

The business has a 50-day moving average of $86.83 and a two-hundred day moving average of $100.60. The company has a market cap of $1.73 billion, a P/E ratio of 8.83 and a beta of 2.03. 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 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.