
LGI Homes (LGIH) Stock Forecast & Price Target
LGI Homes (LGIH) Analyst Ratings
Bulls say
LGI Homes Inc has demonstrated a significant recovery in its net margins, improving from a low of 1.8% in F1Q25 to 8.7% in 2Q25, indicating a positive operational trend. The potential for further improvement is bolstered by commentary from industry competitors regarding a reduction in discounting and incentives, which could positively impact pricing power for entry-level builders like LGI. Additionally, strong job growth and consumer confidence are identified as key demand catalysts, supporting a favorable outlook for the company's future sales performance.
Bears say
LGI Homes is experiencing sequential declines in unit closings, particularly in the second and third quarters of fiscal year 2025, leading to a downward revision of its fourth-quarter closing estimate to 1,108 homes and a reduction in the monthly closing pace to 2.6 homes. Notably, the company's third-quarter unit closings fell short of the Refinitiv estimate of 1,200 homes, with an absorption pace that is 41% lower year-over-year, suggesting a significant slowdown in demand relative to the previous year. Additionally, the Central segment, which generates the majority of LGI's revenue, has reported weaker net margins due to increased competition in the Texas market, further contributing to the negative outlook on the stock.
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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