Stock Traders Purchase High Volume of Put Options on LGI Homes (LGIH)

LGI Homes Inc (NASDAQ:LGIH) saw unusually large options trading on Monday. Stock investors purchased 1,033 put options on the stock. This is an increase of approximately 1,224% compared to the typical daily volume of 78 put options.

In related news, CFO Charles Michael Merdian sold 12,000 shares of the firm’s stock in a transaction dated Friday, March 15th. The stock was sold at an average price of $57.20, for a total transaction of $686,400.00. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Eric Thomas Lipar sold 40,478 shares of the firm’s stock in a transaction dated Monday, March 18th. The stock was sold at an average price of $56.76, for a total value of $2,297,531.28. Following the transaction, the chief executive officer now directly owns 591,685 shares in the company, valued at approximately $33,584,040.60. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 133,611 shares of company stock worth $7,928,312. Corporate insiders own 13.40% of the company’s stock.

Several institutional investors have recently modified their holdings of the stock. BlackRock Inc. raised its position in shares of LGI Homes by 2.2% during the 1st quarter. BlackRock Inc. now owns 2,890,502 shares of the financial services provider’s stock worth $174,122,000 after purchasing an additional 61,099 shares during the last quarter. FMR LLC grew its stake in LGI Homes by 40.3% in the 4th quarter. FMR LLC now owns 2,371,309 shares of the financial services provider’s stock worth $107,231,000 after acquiring an additional 681,165 shares during the period. Epoch Investment Partners Inc. grew its stake in LGI Homes by 12.6% in the 4th quarter. Epoch Investment Partners Inc. now owns 1,664,836 shares of the financial services provider’s stock worth $75,283,000 after acquiring an additional 186,150 shares during the period. Frontier Capital Management Co. LLC grew its stake in LGI Homes by 14.6% in the 4th quarter. Frontier Capital Management Co. LLC now owns 1,425,195 shares of the financial services provider’s stock worth $64,447,000 after acquiring an additional 181,951 shares during the period. Finally, Altshuler Shaham Ltd grew its stake in LGI Homes by 1.2% in the 1st quarter. Altshuler Shaham Ltd now owns 865,499 shares of the financial services provider’s stock worth $52,137,000 after acquiring an additional 10,032 shares during the period. Hedge funds and other institutional investors own 94.44% of the company’s stock.

Shares of LGIH stock traded up $0.40 during midday trading on Thursday, reaching $68.56. 153,437 shares of the company traded hands, compared to its average volume of 315,892. LGI Homes has a 1-year low of $37.16 and a 1-year high of $72.89. The company has a current ratio of 16.86, a quick ratio of 1.35 and a debt-to-equity ratio of 1.00. The company has a market cap of $1.60 billion, a price-to-earnings ratio of 10.80, a PEG ratio of 0.95 and a beta of 0.61.

LGI Homes (NASDAQ:LGIH) last issued its quarterly earnings data on Tuesday, May 7th. The financial services provider reported $0.73 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.86 by ($0.13). LGI Homes had a return on equity of 23.28% and a net margin of 9.67%. The company had revenue of $287.60 million for the quarter, compared to analyst estimates of $288.06 million. During the same quarter in the prior year, the firm earned $1.10 earnings per share. The company’s revenue for the quarter was up 3.1% on a year-over-year basis. Sell-side analysts forecast that LGI Homes will post 6.71 earnings per share for the current fiscal year.

A number of brokerages recently commented on LGIH. ValuEngine upgraded shares of LGI Homes from a “sell” rating to a “hold” rating in a research report on Wednesday, March 27th. Zacks Investment Research downgraded shares of LGI Homes from a “buy” rating to a “hold” rating in a research report on Tuesday, May 7th. Wells Fargo & Co raised their price objective on shares of LGI Homes from $58.00 to $66.00 and gave the company an “outperform” rating in a research report on Wednesday, February 27th. JMP Securities raised their price objective on shares of LGI Homes from $65.00 to $68.00 and gave the company a “market outperform” rating in a research report on Wednesday, February 27th. Finally, BidaskClub upgraded shares of LGI Homes from a “buy” rating to a “strong-buy” rating in a research report on Tuesday, April 9th. Three investment analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company. LGI Homes has a consensus rating of “Buy” and a consensus target price of $69.90.

WARNING: “Stock Traders Purchase High Volume of Put Options on LGI Homes (LGIH)” was posted by Rockland Register and is the property of of Rockland Register. If you are viewing this article on another site, it was illegally copied and reposted in violation of US & international trademark & copyright laws. The correct version of this article can be read at https://rocklandregister.com/2019/05/30/lgi-homes-sees-unusually-large-options-volume-lgih.html.

LGI Homes Company Profile

LGI Homes, Inc engages in the design, construction, and sale of new homes in Texas, Arizona, Florida, Georgia, New Mexico, North Carolina, South Carolina, Colorado, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, and Nevada. It offers entry-level homes, such as detached homes and townhomes, and move-up homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name.

See Also: What is a Real Estate Investment Trust (REIT)?

Receive News & Ratings for LGI Homes Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LGI Homes and related companies with MarketBeat.com's FREE daily email newsletter.