
LGI Homes (LGIH) Stock Forecast & Price Target
LGI Homes (LGIH) Analyst Ratings
Bulls say
LGI Homes Inc has demonstrated a marked improvement in its net margins, increasing sequentially from a low of 1.8% in the first quarter of fiscal year 2025 to 8.7% in the second quarter, indicating a potential stabilization of profitability. Additionally, the anticipation of reduced discounting and incentives from competitors may serve as a positive catalyst for LGI, benefiting the broader market for entry-level homebuilders. Furthermore, strong job growth and rising consumer confidence are expected to bolster demand for LGI’s homes, reinforcing the positive outlook for the company's financial performance.
Bears say
LGI Homes has experienced sequential declines in unit closings for the second and third quarters of FY25, resulting in a downward adjustment of its fourth-quarter closing estimate to 1,108 homes and a reduced monthly closing pace. Additionally, the company's third-quarter unit closings fell short of Refinitiv's expectations, with a year-over-year absorption pace that declined by 41%, indicating significant challenges in maintaining sales momentum. Furthermore, increased competition in Texas has negatively impacted the net margins of LGI's Central segment, contributing to a financial outlook that raises concerns about the company's overall profitability.
This aggregate rating is based on analysts' research of LGI Homes and is not a guaranteed prediction by Public.com or investment advice.
LGI Homes (LGIH) Analyst Forecast & Price Prediction
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