Investing.com - Citizens reiterated a Market Outperform rating and $93.00 price target on LGI Homes stock (NASDAQ:LGIH). The stock currently trades at $59.74 with a market cap of $1.39 billion, showing strong momentum with a 39% year-to-date gain and a 38% return over the past six months, according to InvestingPro data.

The firm raised its fiscal 2026 and fiscal 2027 earnings per share estimates to $3.25 and $3.68 from $2.58 and $3.20, respectively. Revenue estimates increased to $1.9 billion and $2.1 billion from $1.7 billion and $2.0 billion for the same periods. InvestingPro analysis suggests the stock appears overvalued relative to its Fair Value, placing it among equities on the platform’s most overvalued list. For deeper insights, investors can access LGIH’s comprehensive Pro Research Report, one of 1,400+ available reports, alongside 8 additional ProTips.

Citizens raised its fiscal 2027 closing estimate to 5,700 units from 5,400 units as LGI Homes appears on track for a community count of 160 by the end of fiscal 2026 versus a prior forecast of 151. The firm lowered its fiscal 2027 selling, general and administrative expenses as a percentage of sales forecast to 14.7% from 15.1% in anticipation of higher revenue leverage.

For fiscal 2026, the majority of the earnings revisions focused on the second quarter, where the earnings per share estimate increased to $1.05 from $0.59. Citizens raised its second-quarter fiscal 2026 gross margin estimate to 19.2% from 19.0% and lowered its selling, general and administrative expenses as a percentage of sales forecast to 14.7% from 15.6%.

The firm increased its second-quarter fiscal 2026 pretax other income forecast to $10.0 million from $4.9 million as LGI Homes sold 75 rental homes in the second quarter of fiscal 2026 versus 35 rental homes in the first quarter. The third-quarter and fourth-quarter fiscal 2026 estimates for $4.9 million in pretax other income per quarter remain unchanged.

In other recent news, LGI Homes reported its first-quarter 2026 earnings, which revealed a significant earnings per share (EPS) surprise, outperforming expectations by 118.18%. The company’s EPS was $0.24, surpassing the forecast of $0.11, though revenue did not meet projections, totaling $319.74 million against an expected $336.6 million. Additionally, LGI Homes announced that it has received approval for a dual listing on the Nasdaq Texas exchange, while maintaining its primary listing on the Nasdaq Global Select Market. This development will not affect investors’ ability to trade the company’s stock. In the realm of mergers and acquisitions, Wolfe Research highlighted that consolidation is a continuing trend in the homebuilding sector, following Berkshire Hathaway’s acquisition of Taylor Morrison Home Corp. Finally, Citizens reiterated a Market Outperform rating for LGI Homes, emphasizing the company’s land-heavy strategy as a positive factor. These developments offer investors a detailed view of LGI Homes’ recent activities and market positioning.

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