Lgi Homes Stock Buy Hold or Sell Recommendation
| LGIH Stock | USD 71.86 1.24 1.76% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding LGI Homes is 'Cautious Hold'. The recommendation algorithm takes into account all of LGI Homes' available fundamental, technical, and predictive indicators you will find on this site.
Check out LGI Homes Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in LGI Stock please use our How to Invest in LGI Homes guide. In addition, we conduct extensive research on individual companies such as LGI and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards LGI Homes. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
LGI |
Execute LGI Homes Buy or Sell Advice
The LGI recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on LGI Homes. Macroaxis does not own or have any residual interests in LGI Homes or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute LGI Homes' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
LGI Homes Trading Alerts and Improvement Suggestions
| LGI Homes generated a negative expected return over the last 90 days | |
| LGI Homes currently holds about 41.97 M in cash with (143.74 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.8. | |
| LGI Homes has a poor financial position based on the latest SEC disclosures | |
| Over 87.0% of the company shares are owned by institutional investors | |
| Latest headline from MacroaxisInsider: Disposition of 3489 shares by Eric Lipar of LGI Homes at 75.94 subject to Rule 16b-3 |
LGI Homes Returns Distribution Density
The distribution of LGI Homes' historical returns is an attempt to chart the uncertainty of LGI Homes' future price movements. The chart of the probability distribution of LGI Homes daily returns describes the distribution of returns around its average expected value. We use LGI Homes price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of LGI Homes returns is essential to provide solid investment advice for LGI Homes.
| Mean Return | -0.55 | Value At Risk | -4.15 | Potential Upside | 3.84 | Standard Deviation | 2.45 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of LGI Homes historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
LGI Stock Institutional Investors
| Shares | Charles Schwab Investment Management Inc | 2024-12-31 | 376.8 K | Fmr Inc | 2024-12-31 | 305.7 K | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 281.1 K | Anomaly Capital Management, Lp | 2024-12-31 | 272.6 K | Goldman Sachs Group Inc | 2024-12-31 | 237.6 K | Northern Trust Corp | 2024-12-31 | 219.5 K | Gilder Gagnon Howe & Co Llc | 2024-12-31 | 215.4 K | Tributary Capital Management, Llc | 2024-12-31 | 187.5 K | Bank Of New York Mellon Corp | 2024-12-31 | 153.1 K | Blackrock Inc | 2024-12-31 | 3.5 M | Vanguard Group Inc | 2024-12-31 | 2.3 M |
LGI Homes Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (70.2M) | (463.6M) | (823.9M) | (255.5M) | (365.9M) | (384.2M) | |
| Change In Cash | (2.4M) | 14.6M | (18.5M) | 17.0M | 4.2M | 2.7M | |
| Free Cash Flow | 199.5M | 20.0M | (371.6M) | (58.4M) | (145.7M) | (138.4M) | |
| Depreciation | 710K | 1.2M | 1.6M | 2.4M | 3.1M | 3.3M | |
| Other Non Cash Items | (4K) | 13.3M | (10.2M) | 357K | (12.9M) | (12.3M) | |
| Capital Expenditures | 2.7M | 1.7M | 1.2M | 1.4M | 2.0M | 1.2M | |
| Net Income | 323.9M | 429.6M | 326.6M | 199.2M | 196.1M | 166.2M | |
| End Period Cash Flow | 35.9M | 50.5M | 32.0M | 49.0M | 53.2M | 43.8M | |
| Investments | (3.0M) | (1.7M) | (4.8M) | (11.5M) | 15.6M | 16.4M | |
| Change Receivables | (13.6M) | (59.5M) | 58.0M | 32.8M | 37.7M | 39.6M | |
| Net Borrowings | 32.6M | (155.1M) | 249.9M | 306.7M | 352.7M | 370.3M | |
| Change To Netincome | 5.9M | 11.1M | 27.6M | (975K) | (1.1M) | (1.1M) |
LGI Homes Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to LGI Homes or Household Durables sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that LGI Homes' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a LGI stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.43 | |
β | Beta against Dow Jones | 1.19 | |
σ | Overall volatility | 2.42 | |
Ir | Information ratio | -0.18 |
LGI Homes Volatility Alert
LGI Homes exhibits very low volatility with skewness of 0.34 and kurtosis of -0.52. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure LGI Homes' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact LGI Homes' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.LGI Homes Fundamentals Vs Peers
Comparing LGI Homes' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze LGI Homes' direct or indirect competition across all of the common fundamentals between LGI Homes and the related equities. This way, we can detect undervalued stocks with similar characteristics as LGI Homes or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of LGI Homes' fundamental indicators could also be used in its relative valuation, which is a method of valuing LGI Homes by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare LGI Homes to competition |
| Fundamentals | LGI Homes | Peer Average |
| Return On Equity | 0.1 | -0.31 |
| Return On Asset | 0.0377 | -0.14 |
| Profit Margin | 0.09 % | (1.27) % |
| Operating Margin | 0.08 % | (5.51) % |
| Current Valuation | 3.15 B | 16.62 B |
| Shares Outstanding | 23.4 M | 571.82 M |
| Shares Owned By Insiders | 12.49 % | 10.09 % |
| Shares Owned By Institutions | 86.81 % | 39.21 % |
| Number Of Shares Shorted | 2.23 M | 4.71 M |
| Price To Earning | 6.30 X | 28.72 X |
| Price To Book | 0.83 X | 9.51 X |
| Price To Sales | 0.76 X | 11.42 X |
| Revenue | 2.2 B | 9.43 B |
| Gross Profit | 537.32 M | 27.38 B |
| EBITDA | 212.15 M | 3.9 B |
| Net Income | 196.07 M | 570.98 M |
| Cash And Equivalents | 41.97 M | 2.7 B |
| Cash Per Share | 1.80 X | 5.01 X |
| Total Debt | 1.48 B | 5.32 B |
| Debt To Equity | 0.77 % | 48.70 % |
| Current Ratio | 28.83 X | 2.16 X |
| Book Value Per Share | 87.07 X | 1.93 K |
| Cash Flow From Operations | (143.74 M) | 971.22 M |
| Short Ratio | 9.84 X | 4.00 X |
| Earnings Per Share | 8.30 X | 3.12 X |
| Price To Earnings To Growth | 0.69 X | 4.89 X |
| Target Price | 106.67 | |
| Number Of Employees | 1.17 K | 18.84 K |
| Beta | 2.14 | -0.15 |
| Market Capitalization | 1.68 B | 19.03 B |
| Total Asset | 3.76 B | 29.47 B |
| Retained Earnings | 2.09 B | 9.33 B |
| Working Capital | 3.33 B | 1.48 B |
Note: Disposition of 3489 shares by Eric Lipar of LGI Homes at 75.94 subject to Rule 16b-3 [view details]
LGI Homes Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as LGI . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About LGI Homes Buy or Sell Advice
When is the right time to buy or sell LGI Homes? Buying financial instruments such as LGI Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out LGI Homes Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in LGI Stock please use our How to Invest in LGI Homes guide.You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LGI Homes. If investors know LGI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LGI Homes listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.02) | Earnings Share 8.3 | Revenue Per Share | Quarterly Revenue Growth (0.08) | Return On Assets |
The market value of LGI Homes is measured differently than its book value, which is the value of LGI that is recorded on the company's balance sheet. Investors also form their own opinion of LGI Homes' value that differs from its market value or its book value, called intrinsic value, which is LGI Homes' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LGI Homes' market value can be influenced by many factors that don't directly affect LGI Homes' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LGI Homes' value and its price as these two are different measures arrived at by different means. Investors typically determine if LGI Homes is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LGI Homes' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.