Wedbush Issues Pessimistic Outlook for LGI Homes Earnings

LGI Homes, Inc. (NASDAQ:LGIH) – Equities research analysts at Wedbush dropped their Q1 2025 earnings per share estimates for LGI Homes in a research report issued on Tuesday, February 25th. Wedbush analyst J. Mccanless now anticipates that the financial services provider will earn $0.86 per share for the quarter, down from their prior forecast of $1.48. Wedbush currently has a “Neutral” rating and a $115.00 target price on the stock. The consensus estimate for LGI Homes’ current full-year earnings is $8.46 per share. Wedbush also issued estimates for LGI Homes’ Q2 2025 earnings at $1.74 EPS, Q3 2025 earnings at $2.42 EPS, Q4 2025 earnings at $2.92 EPS, FY2025 earnings at $7.94 EPS, Q1 2026 earnings at $0.99 EPS, Q2 2026 earnings at $1.99 EPS, Q3 2026 earnings at $2.65 EPS, Q4 2026 earnings at $3.16 EPS and FY2026 earnings at $8.79 EPS.

A number of other equities research analysts also recently issued reports on LGIH. JPMorgan Chase & Co. cut their price target on LGI Homes from $82.00 to $80.00 and set an “underweight” rating for the company in a research note on Tuesday, January 14th. JMP Securities reaffirmed a “market outperform” rating and set a $160.00 target price on shares of LGI Homes in a report on Friday, January 10th. Finally, Seaport Res Ptn upgraded shares of LGI Homes from a “strong sell” rating to a “hold” rating in a research note on Monday, January 27th. Two investment 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, the company currently has a consensus rating of “Hold” and a consensus price target of $118.33.

LGI Homes Price Performance

NASDAQ LGIH opened at $73.43 on Friday. 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 has a 1-year low of $71.70 and a 1-year high of $125.83. The stock has a market capitalization of $1.73 billion, a price-to-earnings ratio of 8.80 and a beta of 2.03. The business’s fifty day moving average price is $86.83 and its 200-day moving average price is $100.60.

LGI Homes (NASDAQ:LGIH) last issued its quarterly earnings data on Tuesday, February 25th. The financial services provider reported $2.15 earnings per share for the quarter, missing analysts’ consensus estimates of $2.31 by ($0.16). LGI Homes had a net margin of 8.75% and a return on equity of 10.32%. The company had revenue of $557.40 million for the quarter, compared to the consensus estimate of $588.56 million. During the same quarter last year, the company earned $2.19 EPS. The firm’s revenue for the quarter was down 8.4% on a year-over-year basis.

Institutional Investors Weigh In On LGI Homes

A number of institutional investors have recently bought and sold shares of LGIH. Vanguard Group Inc. grew its position in shares of 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 worth $203,377,000 after purchasing an additional 54,039 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of 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 buying an additional 6,706 shares during the last quarter. Wasatch Advisors LP raised its position in shares of 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 buying an additional 36,608 shares during the last quarter. Khrom Capital Management LLC lifted its holdings in shares of LGI Homes by 19.4% in the fourth quarter. Khrom Capital Management LLC now owns 1,095,801 shares of the financial services provider’s stock worth $97,965,000 after buying an additional 177,698 shares in the last quarter. Finally, Disciplined Growth Investors Inc. MN boosted its position in shares of 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 worth $111,350,000 after acquiring an additional 33,306 shares during the last quarter. Hedge funds and other institutional investors own 84.89% of the company’s stock.

About LGI Homes

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.