Lgi Homes Stock Alpha and Beta Analysis
| LGIH Stock | USD 71.86 1.24 1.76% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as LGI Homes. It also helps investors analyze the systematic and unsystematic risks associated with investing in LGI Homes over a specified time horizon. Remember, high LGI Homes' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to LGI Homes' market risk premium analysis include:
Beta 1.17 | Alpha (0.42) | Risk 2.44 | Sharpe Ratio (0.22) | Expected Return (0.53) |
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
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LGI Homes Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. LGI Homes market risk premium is the additional return an investor will receive from holding LGI Homes long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in LGI Homes. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate LGI Homes' performance over market.| α | -0.42 | β | 1.17 |
LGI Homes expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of LGI Homes' Buy-and-hold return. Our buy-and-hold chart shows how LGI Homes performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.LGI Homes Market Price Analysis
Market price analysis indicators help investors to evaluate how LGI Homes stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading LGI Homes shares will generate the highest return on investment. By understating and applying LGI Homes stock market price indicators, traders can identify LGI Homes position entry and exit signals to maximize returns.
LGI Homes Return and Market Media
The median price of LGI Homes for the period between Sun, Dec 15, 2024 and Sat, Mar 15, 2025 is 86.99 with a coefficient of variation of 10.78. The daily time series for the period is distributed with a sample standard deviation of 9.38, arithmetic mean of 87.02, and mean deviation of 7.26. The Stock received a lot of media exposure during the period. Price Growth (%) |
| Timeline |
1 | Acquisition by Michael Snider of 5008 shares of LGI Homes subject to Rule 16b-3 | 12/13/2024 |
2 | LGI Homes Opens New Community in Pennsylvania | 12/16/2024 |
3 | Is LGI Homes the Top Small Cap Stock to Buy with the Highest Upside Potential | 01/13/2025 |
4 | LGI Homes Opens New Section at Homestead Estates in Elgin, Texas | 02/19/2025 |
5 | LGI Homes Q4 Earnings Taking a Look at Key Metrics Versus Estimates | 02/25/2025 |
6 | Q4 2024 LGI Homes Inc Earnings Call Transcript | 02/26/2025 |
7 | Decoding LGI Homes Inc A Strategic SWOT Insight | 02/28/2025 |
8 | Discretionary transaction by Charles Merdian of tradable shares of LGI Homes subject to Rule 16b-3 | 03/05/2025 |
9 | LGI Homes Inc Launches New Luxury Community in Rock Hill, South Carolina | 03/07/2025 |
10 | Disposition of 1105 shares by Michael Snider of LGI Homes at 75.94 subject to Rule 16b-3 | 03/10/2025 |
11 | Disposition of 3489 shares by Eric Lipar of LGI Homes at 75.94 subject to Rule 16b-3 | 03/11/2025 |
About LGI Homes Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including LGI or other stocks. Alpha measures the amount that position in LGI Homes has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2024 | 2025 (projected) | Dividend Yield | 0.0284 | 0.0468 | Price To Sales Ratio | 0.96 | 1.28 |
LGI Homes Upcoming Company Events
As portrayed in its financial statements, the presentation of LGI Homes' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, LGI Homes' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of LGI Homes' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of LGI Homes. Please utilize our Beneish M Score to check the likelihood of LGI Homes' management manipulating its earnings.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Build Portfolio with LGI Homes
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out LGI Homes Backtesting, LGI Homes Valuation, LGI Homes Correlation, LGI Homes Hype Analysis, LGI Homes Volatility, LGI Homes History and analyze LGI Homes Performance. 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
LGI Homes technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.