Latest news with #LGIH
Yahoo
18 hours ago
- Business
- Yahoo
LGI Homes Unveils Lake Gallagher Estates Community in Dover, FL
LGI Homes LGIH announced the opening of Lake Gallagher Estates, a new community in Dover, FL. This community features an exclusive selection of 26 spacious, upgraded homes in Hillsborough County. Every home at Lake Gallagher Estates is situated on an expansive lot, with each lot covering at least three-fourths of an acre, thereby offering abundant space for outdoor living and activities. The majority of the homesites are aligned along the private community lake. Located conveniently near FL-574, residents will benefit from easy access to numerous shopping centers, a wide range of dining options, and top-rated schools, rendering it a perfect option for families desiring both privacy and daily accessibility. Dover District Park, which is just half a mile away, offers a pleasant outdoor space for families, featuring a lake, playground, picnic spots, walking paths, and athletic facilities. All homes at Lake Gallagher Estates feature LGI Homes' CompleteHome Plus package, a meticulously curated collection of high-end finishes and upgrades. LGIH's opening of Lake Gallagher Estates community highlights its commitment to addressing housing demands in Florida. The amenities provided at this community are likely to appeal buyers and encourage them to purchase homes. This Woodlands, TX-based company is a pioneer in the homebuilding industry, engaged in the design, construction and sale of new homes across 36 markets in 21 states through an innovative and systematic approach. In the past month, shares of this Zacks Rank #4 (Sell) company have declined 18% compared to the industry's fall of 3.4%. Image Source: Zacks Investment Research A better-ranked stock from the broader real estate sector is Ferrovial SE FER. FER currently sports a Zacks Rank of #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Ferrovial's 2025 earnings per share is pegged at 99 cents, which indicates a year-over-year decrease of 35.7%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LGI Homes, Inc. (LGIH) : Free Stock Analysis Report Ferrovial SE (FER) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Insider
5 days ago
- Business
- Business Insider
LGI Homes reports 416 home closings in May 2025
LGI Homes (LGIH) announced it closed 416 homes in May 2025. As of May 31, 2025, the company had 145 active selling communities. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Globe and Mail
15-04-2025
- Business
- Globe and Mail
3 Reasons LGIH is Risky and 1 Stock to Buy Instead
LGI Homes's stock price has taken a beating over the past six months, shedding 49.3% of its value and falling to $58.07 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move. Is there a buying opportunity in LGI Homes, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Even with the cheaper entry price, we're cautious about LGI Homes. Here are three reasons why we avoid LGIH and a stock we'd rather own. Why Do We Think LGI Homes Will Underperform? Based in Texas, LGI Homes (NASDAQ:LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States. 1. Weak Backlog Growth Points to Soft Demand Investors interested in Home Builders companies should track backlog in addition to reported revenue. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into LGI Homes's future revenue streams. LGI Homes's backlog came in at $236.5 million in the latest quarter, and over the last two years, its year-on-year growth averaged 3.4%. This performance was underwhelming and suggests that increasing competition is causing challenges in winning new orders. 2. New Investments Fail to Bear Fruit as ROIC Declines ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Over the last few years, LGI Homes's ROIC has unfortunately decreased significantly. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities. 3. Short Cash Runway Exposes Shareholders to Potential Dilution As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. LGI Homes burned through $145.7 million of cash over the last year, and its $1.48 billion of debt exceeds the $53.2 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble. Unless the LGI Homes's fundamentals change quickly, it might find itself in a position where it must raise capital from investors to continue operating. Whether that would be favorable is unclear because dilution is a headwind for shareholder returns. We remain cautious of LGI Homes until it generates consistent free cash flow or any of its announced financing plans materialize on its balance sheet. Final Judgment LGI Homes doesn't pass our quality test. Following the recent decline, the stock trades at 5.6× forward price-to-earnings (or $58.07 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are more exciting stocks to buy at the moment. Let us point you toward one of our all-time favorite software stocks. Stocks We Would Buy Instead of LGI Homes Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
Yahoo
15-04-2025
- Business
- Yahoo
3 Reasons LGIH is Risky and 1 Stock to Buy Instead
LGI Homes's stock price has taken a beating over the past six months, shedding 49.3% of its value and falling to $58.07 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move. Is there a buying opportunity in LGI Homes, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Even with the cheaper entry price, we're cautious about LGI Homes. Here are three reasons why we avoid LGIH and a stock we'd rather own. Based in Texas, LGI Homes (NASDAQ:LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States. Investors interested in Home Builders companies should track backlog in addition to reported revenue. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into LGI Homes's future revenue streams. LGI Homes's backlog came in at $236.5 million in the latest quarter, and over the last two years, its year-on-year growth averaged 3.4%. This performance was underwhelming and suggests that increasing competition is causing challenges in winning new orders. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Over the last few years, LGI Homes's ROIC has unfortunately decreased significantly. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities. As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. LGI Homes burned through $145.7 million of cash over the last year, and its $1.48 billion of debt exceeds the $53.2 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble. Unless the LGI Homes's fundamentals change quickly, it might find itself in a position where it must raise capital from investors to continue operating. Whether that would be favorable is unclear because dilution is a headwind for shareholder returns. We remain cautious of LGI Homes until it generates consistent free cash flow or any of its announced financing plans materialize on its balance sheet. LGI Homes doesn't pass our quality test. Following the recent decline, the stock trades at 5.6× forward price-to-earnings (or $58.07 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are more exciting stocks to buy at the moment. Let us point you toward the most dominant software business in the world. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
01-04-2025
- Business
- Yahoo
LGI Homes (LGIH) Shares Sold off after Fed's Reversed Course
River Road Asset Management, an investment management company released its 'River Road Small Cap Value Fund' Q4 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, AMG River Road Small Cap Value Fund (Class N) returned 7.35% compared to -1.06% returns for the Russell 2000® Value Index. For the year 2024, the fund returned 14.07%, significantly outperforming Index return of 8.06%. Stocks rallied in November after a Republican victory but declined sharply following hawkish Fed comments. Shorter duration stocks, including small caps and value, lost most of their post-election gains by the end of December. Small caps lagged their large counter parts for eight consecutive years. For more information on the fund's best picks in 2024, please check its top five holdings. In its fourth quarter 2024 investor letter, River Road Small Cap Value Fund emphasized stocks such as LGI Homes, Inc. (NASDAQ:LGIH). LGI Homes, Inc. (NASDAQ:LGIH) is a US-based home builder engages in the design, construction, and sale of homes. The one-month return of LGI Homes, Inc. (NASDAQ:LGIH) was -5.49%, and its shares lost 41.92% of their value over the last 52 weeks. On March 31, 2025, LGI Homes, Inc. (NASDAQ:LGIH) stock closed at $66.47 per share with a market capitalization of $1.555 billion. River Road Small Cap Value Fund stated the following regarding LGI Homes, Inc. (NASDAQ:LGIH) in its Q4 2024 investor letter: "Another poor performer was LGI Homes, Inc. (NASDAQ:LGIH), the 15th largest homebuilder in the U.S. specializing in entry-level homes for first-time buyers. The stock rallied in Q3 on the prospect of lower mortgage rates due to several projected rate cuts by the Fed. After the U.S. presidential election, the Fed reversed course and interest rates increased, and LGIH began to lag the market. LGIH's Q3 2024 results exceeded expectations despite ongoing affordability challenges for homebuyers. Home sales revenue rose mainly due to an increase in the average sales price (ASP) to $371k, up 5.2% year-over-year. Home closings for the quarter totaled 1,757 homes, flat compared to the prior year but up 6% sequentially. LGIH reduced its expected closings for fiscal year (FY) 2024 to 6,100-6,400 homes from the initial 7,000 8,000 range, while raising gross margin expectations. Amid a U.S. housing shortage estimated at two-to-four million homes, we believe prioritizing margins over volume is the right strategy for LGIH, which has spent the last two years building its inventory of developed lots and raw land. Q3 gross margins were flat year-over-year in stark contrast to industry peers who reported gross margin declines, particularly at the entry-level segment. Active community count grew 30% year-over-year and 8% sequentially to 138, positioning the company to meet its year-end target of 150 active communities and significantly increase home closings in FY 2025. We took no action on the position." A worker hammering a nail into the frame of a single-family home under construction. LGI Homes, Inc. (NASDAQ:LGIH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held LGI Homes, Inc. (NASDAQ:LGIH) at the end of the fourth quarter compared to 22 in the third quarter. In the fourth quarter, LGI Homes, Inc. (NASDAQ:LGIH) generated $557.4 million in revenue, representing an 8.4% decrease year-over-year. While we acknowledge the potential of LGI Homes, Inc. (NASDAQ:LGIH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered LGI Homes, Inc. (NASDAQ:LGIH) in another article, where we shared the list of top small cap stocks to buy with the highest upside potential. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
