Is Buying Stock Like LGI Homes Inc Good Idea After Today’s Bearish Options Activity?

 Is Buying Stock Like LGI Homes Inc Good Idea After Today's Bearish Options Activity?

In today’s session LGI Homes Inc (LGIH) recorded an unusually high (337) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious LGIH decrease. With 337 contracts traded and 14824 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: LGIH161118P00030000 closed last at: $2.25 or 21.6% up. About 187,720 shares traded hands. LGI Homes Inc (NASDAQ:LGIH) has risen 20.82% since March 29, 2016 and is uptrending. It has outperformed by 17.35% the S&P500.

Analysts await LGI Homes Inc (NASDAQ:LGIH) to report earnings on November, 2. They expect $0.84 earnings per share, up 10.53% or $0.08 from last year’s $0.76 per share. LGIH’s profit will be $17.71M for 8.84 P/E if the $0.84 EPS becomes a reality. After $0.96 actual earnings per share reported by LGI Homes Inc for the previous quarter, Wall Street now forecasts -12.50% negative EPS growth.

LGI Homes Inc (NASDAQ:LGIH) Ratings Coverage

Out of 3 analysts covering LGI Homes (NASDAQ:LGIH), 3 rate it a “Buy”, 0 “Sell”, while 0 “Hold”. This means 100% are positive. $46.0 is the highest target while $27 is the lowest. The $34.70 average target is 16.84% above today’s ($29.7) stock price. LGI Homes has been the topic of 6 analyst reports since August 6, 2015 according to StockzIntelligence Inc. The firm earned “Buy” rating on Tuesday, December 29 by Sidoti. The stock has “Hold” rating given by Zacks on Friday, August 7. As per Thursday, September 29, the company rating was initiated by Wells Fargo.

According to Zacks Investment Research, “LGI Homes, Inc. is engaged in the design and construction of entry-level homes across Texas, Arizona, Florida and Georgia. The company focuses on converting renters of apartments and single-family homes into homeowners by offering homes at affordable locations. LGI Homes, Inc. is headquartered in The Woodlands, Texas.”

Insitutional Activity: The institutional sentiment increased to 1.65 in Q2 2016. Its up 0.58, from 1.07 in 2016Q1. The ratio improved, as 10 funds sold all LGI Homes Inc shares owned while 38 reduced positions. 30 funds bought stakes while 49 increased positions. They now own 13.90 million shares or 12.99% more from 12.30 million shares in 2016Q1.
Nordea Mgmt Ab reported 21,068 shares or 0% of all its holdings. Brandywine Mgmt Lc owns 14,700 shares or 0% of their US portfolio. Sei Invs has 0.01% invested in the company for 44,839 shares. The Texas-based Bridgeway Mgmt Incorporated has invested 0.05% in LGI Homes Inc (NASDAQ:LGIH). Diam Com accumulated 0% or 1,800 shares. Springbok Capital Management Ltd Limited Liability Company holds 0.26% of its portfolio in LGI Homes Inc (NASDAQ:LGIH) for 57,663 shares. Lincoln last reported 8,000 shares in the company. American Int Gru Incorporated has 8,893 shares for 0% of their US portfolio. Shaker Invs Llc Oh accumulated 76,920 shares or 2.23% of the stock. Lord Abbett & Ltd Com, a New Jersey-based fund reported 270,072 shares. Ubs Asset Americas Incorporated has 0% invested in the company for 8,581 shares. Blackrock accumulated 7,385 shares or 0% of the stock. Icon Advisers Incorporated holds 0.02% of its portfolio in LGI Homes Inc (NASDAQ:LGIH) for 7,200 shares. Thompson Davis & Inc has invested 0.1% of its portfolio in LGI Homes Inc (NASDAQ:LGIH). Manufacturers Life The, a Ontario – Canada-based fund reported 9,907 shares.

LGI Homes, Inc. is a homebuilder. The Company is engaged in the design, construction, marketing and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, South Carolina, North Carolina, Colorado, Washington and Tennessee. The company has a market cap of $626.00 million. The Firm has five divisions: the Texas division, the Southwest division, the Southeast division, the Florida division and the Northwest division. It has a 9.87 P/E ratio. The Texas division includes homebuilding activities in Houston, Dallas/Fort Worth, San Antonio and Austin locations.

LGIH Company Profile

LGI Homes, Inc., incorporated on June 26, 2013, is a homebuilder. The Firm is engaged in the design, construction, marketing and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, South Carolina, North Carolina, Colorado, Washington and Tennessee. The Firm has five divisions: the Texas division, the Southwest division, the Southeast division, the Florida division and the Northwest division. The Texas division includes homebuilding activities in Houston, Dallas/Fort Worth, San Antonio and Austin locations. The Southwest division includes homebuilding activities in Phoenix, Tucson, Albuquerque, Denver and Colorado Springs locations. The Southeast division includes homebuilding activities in Atlanta, Charlotte and Nashville locations. The Florida division includes homebuilding activities in Tampa, Orlando, Fort Myers and Jacksonville locations. The Northwest division includes homebuilding activities in Seattle location.

More notable recent LGI Homes Inc (NASDAQ:LGIH) news were published by: Seekingalpha.com which released: “LGI Homes: Building Fast” on October 28, 2016, also Quotes.Wsj.com with their article: “News LGI Homes Inc.LGIH” published on November 02, 2013, Globenewswire.com published: “LGI Homes, Inc. Reports June 2016 Home Closings and Record Breaking Second …” on July 07, 2016. More interesting news about LGI Homes Inc (NASDAQ:LGIH) were released by: Fool.com and their article: “Why Baker Hughes, LGI Homes, and Acuity Brands Jumped Today” published on April 06, 2016 as well as Globenewswire.com‘s news article titled: “LGI Homes, Inc.’s Inaugural Service Impact Day solidifies partnerships with …” with publication date: June 03, 2016.

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