LGI Homes (NASDAQ:LGIH) Shares Up 7% After Better-Than-Expected Earnings

Shares of LGI Homes, Inc. (NASDAQ:LGIH) shot up 7% during trading on Tuesday following a better than expected earnings announcement. The company traded as high as $112.39 and last traded at $110.77. 110,194 shares changed hands during mid-day trading, a decline of 48% from the average session volume of 210,321 shares. The stock had previously closed at $103.54.

The financial services provider reported $2.95 earnings per share for the quarter, topping analysts’ consensus estimates of $2.54 by $0.41. The business had revenue of $651.85 million for the quarter, compared to analysts’ expectations of $645.27 million. LGI Homes had a return on equity of 10.45% and a net margin of 8.78%. The business’s quarterly revenue was up 5.6% on a year-over-year basis. During the same period in the prior year, the firm earned $2.84 EPS.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. 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 note on Wednesday, July 10th. Wedbush reiterated a “neutral” rating and issued a $125.00 price objective on shares of LGI Homes in a research note on Wednesday. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has given a buy rating to the company. According to data from MarketBeat, LGI Homes has an average rating of “Hold” and a consensus price target of $126.00.

Institutional Trading of LGI Homes

Large investors have recently added to or reduced their stakes in the company. First Horizon Advisors Inc. grew its position in shares of LGI Homes by 32.5% during the 2nd 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 period. Innealta Capital LLC bought a new stake in shares of LGI Homes in the second quarter worth $39,000. Allspring Global Investments Holdings LLC bought a new position in shares of LGI Homes in the 3rd quarter valued at about $43,000. BI Asset Management Fondsmaeglerselskab A S acquired a new stake in shares of LGI Homes in the 1st quarter valued at approximately $52,000. Finally, KBC Group NV increased its stake in shares of LGI Homes by 29.8% during the 3rd quarter. KBC Group NV now owns 732 shares of the financial services provider’s stock worth $87,000 after purchasing an additional 168 shares during the last quarter. 84.89% of the stock is owned by institutional investors.

LGI Homes Stock Down 0.3 %

The firm has a 50 day simple moving average of $110.47 and a 200-day simple moving average of $102.57. The stock has a market cap of $2.58 billion, a P/E ratio of 13.36 and a beta of 1.97. 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 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.