For those still invested in LGIH, the March closings have been released but seem to have been forgotten amidst the recent market volatility.
http://investor.lgihomes.com/news-releases/news-release-deta…
THE WOODLANDS, Texas, April 04, 2018 (GLOBE NEWSWIRE) – LGI Homes, Inc. (Nasdaq:LGIH) today announced 599 homes closed in March 2018, up from 365 home closings in March 2017, representing year-over-year growth of 64.1%. The Company ended the first quarter of 2018 with 1,244 home closings, a 63.5% increase over 761 home closings during the first quarter of 2017.
As of the end of March 2018, the Company had 79 active selling communities.
The current guidance is closing 6000 - 7000 homes for 2018. To meet that range, a bit of simple math tells me they need to close an average of 529 - 640 homes per month to meet their full year guidance. This seems a reasonable target with room bad events in the future.
I find it very interesting to note that this is a good number for monthly closings in a month where the stock market in general has been panicking about economic and world events.
My current feel on this stock, for those wondering, is that LGIH is likely to remain a reasonably good investment this year. The only challenge is I am comparing it to some incredible companies which place “reasonably good” surprisingly low on my personal ranking scale for the near-term outlook of my investments.
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I’ve just sold 50% today. I think they’ve had easier compares so far but they get much harder later in the year.
Yes there is massive under construction but interest rates are going up and there will be an economic slowdown at some point.
I’m closing out half and will probably close out the other half in the next few months.
A
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I think they’ve had easier compares so far but they get much harder later in the year.
I agree, Ant, that is the way I’ve been thinking on this one since the end of last year, that Jan-Mar of this year will still look like great growth because of the poor year ago sales.
I sold about 1/3 the first time the stock ran up to $70, then today sold about 1/2 of what I have left. My remaining 1/3 was purchased in May, July, and Aug of last year so I don’t think I want to wait till then to sell. Unfortunately, in taxable acct so was hoping to wait till long term gains kicked in, but I’m afraid that as their growth rate slows considerably with the harder compares, that the PE will contract, so I’m probably going to get rid of the remaining shares sooner rather than later.
https://www.investors.com/stock-lists/sector-leaders/top-sto…
LGI Homes (LGIH) broke out into a buy zone Thursday morning after the IBD 50 stock reported booming growth.
Late Wednesday the homebuilder announced the closing of 599 homes in March, up 64.1% vs. 365 closings a year earlier. This has brought its year to date home closings to 1,244, up 63.5%.
Shares in LGI Homes rose 3.6% to 73.97 in heavy volume on the stock market today, moving above a 72.10 cup-with-handle buy point. Texas-based LGI Homes, which leads the Building-Residential/Commercial group, spiked 8.6% on Wednesday as housing giant Lennar (LEN) released impressive quarterly earnings Wednesday.
This after a big upward surprise from Lennar that helped LGIH go up 8% or so yesterday. But… the market sucks right now.
“Yesterday’s (Lennar) conference call reaffirmed our view that demand, especially at entry-level price points, is improving across the country,” Wedbush Securities analyst Jay McCanless said in a note Thursday.
That’s good news for LGI and industry giant D.R. Horton (DHI), which are both focused on entry-level homes.
Checklist…Rating
Composite Rating 97 Pass
EPS Rating… 99 Pass
RS Rating …96 Pass
Group RS Rating C+ Neutral
SMR Rating …A Pass
Acc/Dis Rating… B Pass
Pretty decent. Let’s see what the stock does tomorrow, Trump is talking more tariffs and futures are off, so you might get a dip to buy it below pre-earnings announcement levels.
P.