LGIH stock touches 52-week low at $83.75 amid market shifts

Published 08/01/2025, 15:40
LGIH stock touches 52-week low at $83.75 amid market shifts

In a challenging market environment, LGIH ( LGI Homes (NASDAQ:LGIH), Inc.) stock has reached a 52-week low, dipping to $83.75. With a market capitalization of $1.98 billion and a beta of 2.02 indicating higher volatility than the broader market, InvestingPro analysis suggests the stock is currently trading in oversold territory. The home construction company's shares have been under pressure, reflecting a broader industry trend as the housing market adjusts to changing economic conditions. Over the past year, LGI Homes has seen a significant decrease in its stock value, with a 1-year total return of -33.77%. Trading at a P/E ratio of 10.13, the stock's valuation metrics and comprehensive analysis are available through InvestingPro's detailed research reports, which cover over 1,400 US stocks. This downturn mirrors investor concerns over rising interest rates and a potential cooling of the housing market, which have weighed heavily on homebuilders across the board. Despite the current lows, market watchers are closely monitoring the company's performance for signs of a rebound as it navigates through these headwinds.

In other recent news, LGI Homes, Inc. has announced a $400 million offering of unsecured senior notes due in 2032, targeted at qualified institutional buyers and certain non-U.S. persons. The proceeds from this private offering are expected to repay part of the outstanding borrowings under the company's existing revolving credit facility. In terms of recent financial performance, LGI Homes reported a 5.6% year-over-year increase in revenue, reaching $652 million in the third quarter of 2024. The company delivered 1,757 homes and saw a slight improvement in adjusted gross margin to 27.2%. Despite a reported cancellation rate of 26.2%, LGI Homes anticipates closing between 6,100 and 6,400 homes in 2024, with an average selling price projected to be between $360,000 and $370,000. The company has also raised its gross margin guidance by 50 basis points. Looking ahead, a growth of 10% to 20% in community count is expected in 2025. These are among the recent developments for the company.

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