It has been reported that multiple insider activity took place at LGI Homes, Inc. (LGIH). President and COO Snider Michael Larry sold 19,678 shares for $160,093 in transaction occurred on 2019/04/18. After making this transaction, President and COO owns a direct stake of 4 shares, worth $11,376,209, as per the last closing price. On 2019/04/17 Snider Michael Larry, President and COO at LGIH, dumped 13,170 shares at an average price of $68.11 per share. The selling total is valued at $12,774,527.
President and COO, Snider Michael Larry had divested 100 shares for $192,941 through a trade on 2019/04/12. Following this activity, the insider holds 5 shares worth $13,710,387 as of recent close.
Fidelity Small Cap Discovery Fund revealed as top hedge fund owner in LGI Homes, Inc. (LGIH) with a stake of over 1.2M LGIH shares as of January 30, with a market value of approx. $71.16M as of today. The second largest holder, iShares Core S&P Smallcap ETF, with 1.1M shares which equates to $66.16M worth of the stock. At third is Fidelity Series Small Cap Discovery Fund, which stood pat with 750000 shares, a 2.71% position in LGI Homes, Inc., worth $44.48M. The insider holding in stood at 5.2% while institutions hold 96.6%.
LGI Homes, Inc. (NASDAQ:LGIH) rose 0.44% in recent trade and currently has a stock-market value of $1.64B. The shares finished at $71.06, after trading as low as $69.6801 earlier in the session. It hit an intraday high Wednesday at $71.315. Trading activity significantly weakened as the volume at ready counter decreased to 193,081 shares versus 286,425 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 326,015 shares. The stock is now 91.23% above against its bear-market low of $37.16 on October 23, 2018. It has retreated -2.58% since it’s 52-week high of $72.89 reached in May. Now the market price is up 14.93% on the year and up 57.14% YTD.
LGIH stock’s 50 day simple moving average (SMA 50) price is $64.47 and its 200-day simple moving average (SMA 200) price is $53.61. The company’s stock currently has a total float of 18.78M shares. Its weekly volatility is hovering around 3.78% and felt 3.71% volatility in price over a month. On the upside, the share price will test short term resistance at around $71.69. On a downside, the stock is likely to find some support, which begins at $70.06. The failure to get near-term support could push it to $69.05.
It had seen a positive analyst call from Wells Fargo, which upgraded the stock from Market Perform to Outperform on January 07. Analysts at JP Morgan, shed their negative views on September 21 by lifting it fromNeutral to Overweight. Brokerage firm Wedbush, looks cautious as they stick to prior recommendation of Neutral, in a call on July 06. However, they did change the target price from $73 to $65. Wedbush analysts came out with bearish views on April 10 when the call was made. They think the stock is now Neutral compared to to their prior call for Outperform.
When looking at valuations, LGI Homes, Inc. (LGIH) has a cheap P/E of 12.22x as compared to industry average of 12.34x. Moreover, it trades for 8.96 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.39x price/book and 1.08x price/sales. Compared to others, LGI Homes, Inc. is in a different league with regards to profitability, having net margins of 9.7%. To put some perspective around this, the industry’s average net margin is 6.67%. LGIH’s ROE is 23.3%, which is also considerably better than the industry’s ROE of 15.57%.
Shares of LGIH have dropped -0.2% since the company’s most recent earnings report. Over the past 12 fiscal quarters, LGI Homes, Inc. (NASDAQ:LGIH) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 2 quarters (16%), whereas at 0 occasion EPS met analyst expectations. Revenue for the recent quarter stood at $287.59 million, up 3% on last year and below the $288.07 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $424.8 million to $507 million, which should be compared with $480.83 million generated last year. EPS is seen in a range of $1.46 to $1.76, against the $1.96 reported a year ago.
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