LGI Homes Inc. (NASDAQ:LGIH) has a beta of 1.59, a 12-month trailing P/E ratio of 10.30, and a growth ratio of 0.69. The stock’s Relative Strength Index (RSI) is 36.81, with weekly volatility at 4.45% and ATR at 7.71. The LGIH stock’s 52-week price range has touched low of $80.40 and a $188.00 high. Its shares traded lower over the last trading session, losing -7.37% on 06/10/21. The shares fell to a low of $152.85 before closing at $154.82. Intraday shares traded counted 0.53 million, which was -86.32% lower than its 30-day average trading volume of 284.84K. LGIH’s previous close was $167.14 while the outstanding shares total 24.95M.
Investors have identified the Residential Construction company LGI Homes Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $3.83 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
LGI Homes Inc. (LGIH) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1.76 billion total, with 192.9 million as their total liabilities.
LGIH were able to record 159.41 million as free cash flow during the 08/10/2021 quarter of the year, this saw their quarterly net cash flow reduce by 12.21 million. In cash movements, the company had a total of 160.69 million as operating cash flow.
Potential earnings growth for LGI Homes Inc. (LGIH)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/10/2021 quarter of the year, LGI Homes Inc. recorded a total of 705.95 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 35.59% coming in sequential stages and their sales for the 08/10/2021 quarter reducing by -27.12%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 516.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 189.95 million. This allows shareholders to hold on to 24.95M with the recently reported earning now reading 3.99 cents per share. This is a figure that compared to analyst’s prediction for their 08/10/2021 (3.95 cents a share).
Having a look at the company’s valuation, the company is expected to record 15.16 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LGIH sounds very interesting.
Is the stock of LGIH attractive?
In related news, Chief Marketing Officer, Eaton Rachel Lyons sold 2,622 shares of the company’s stock in a transaction that recorded on May 12. The sale was performed at an average price of 168.49, for a total value of 441,787. As the sale deal closes, the Chief Marketing Officer, Eaton Rachel Lyons now sold 378 shares of the company’s stock, valued at 65,496. Also, President and COO, Snider Michael Larry sold 3,340 shares of the company’s stock in a deal that was recorded on Mar 26. The shares were price at an average price of 150.40 per share, with a total market value of 502,330. Following this completion of acquisition, the Director, Gage Duncan S now holds 697 shares of the company’s stock, valued at 95,872. In the last 6 months, insiders have changed their ownership in shares of company stock by 3.20%.
0 out of 6 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on LGI Homes Inc.. 2 analysts has assigned a Sell rating on the LGIH stock. The 12-month mean consensus price target for the company’s shares has been set at $156.67.