LGI Homes, Inc. (LGIH)

LGI Homes' stock price experienced a significant decline of 36.03% from January 10, 2025, to January 9, 2026. JPMorgan downgraded LGIH to Underweight and lowered its price target to $47 from $52 in early July 2025. A Citizens JMP analyst lowered the price target to $75 from $140 following a Q2 earnings miss. LGI Homes reported missing Q3 2025 forecasts with an EPS of $0.85 and revenue down 39.2% year-over-year. The company introduced new financing options and promotional mortgage rates to attract entry-level buyers. Management noted improved sales trends from the latter half of June 2025, continuing into July, August, and September. In November 2025, LGI Homes closed 398 homes, and in December 2025, home closings increased to 569 homes. Citizens analysts raised the firm's price target on LGI Homes to $95 from $85 in late August 2025 and again in early January 2026. Negative results from competitor Lennar in December 2025 caused LGIH stock to drop. The company is scheduled to release its Q4 and full-year 2025 financial results on February 17, 2026.

LGI Homes experiences demand seasonality, with historical data suggesting a "Buy Date of April 2 and a Sell Date of August 1" for its stock. There is a seasonally driven decline in absorption rates from the second to the third quarter. LGI Homes has implemented strategies such as offering promotional mortgage rates and discounts on older inventory to stimulate demand.

LGI Homes, Inc. is a homebuilder and land developer in the United States, operating in the Consumer Discretionary sector, specifically in the Residential Construction and Homebuilding industry. The company offers entry-level homes and active adult offerings under the "LGI Homes" brand, luxury homes under the "Terrata Homes" brand, and engages in a wholesale business segment. LGI Homes also has joint ventures providing mortgage and insurance services through LGI Mortgage Solutions and LGI Insurance Solutions.

LGI Homes operates in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, Pennsylvania, Maryland, and Utah. The company's homebuilding operations are organized into seven operating segments: West, Northwest, Central, Midwest, Florida, Southeast, and Mid-Atlantic, which are aggregated into five reportable segments.

LGI Homes is recognized as a prominent homebuilder, known for its streamlined home buying process and customer service. The company's brand reputation is built on making homeownership attainable for first-time homebuyers. However, there have been concerns regarding aggressive marketing tactics and challenges due to a strategic misalignment between its affordability-driven tactics and rising mortgage rates.

Institutional ownership of LGI Homes, Inc. is at 90.44%, with major holders including BlackRock, Inc., Vanguard Group Inc, and Dimensional Fund Advisors Lp. Individual insider ownership stands at 3.84%, with key shareholders being Thomas E. Lipar and Eric Thomas Lipar.