Is it Still Safe to Acquire LGI Homes (LGIH) Shares?

Carillon Tower Advisers, an investment management firm, published its “Carillon Scout Small Cap Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. During the quarter, the management team added one new holding and eliminated two positions from the Fund portfolio. With very little cash, the portfolio remains fully invested. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Carillon Scout Small Cap Fund mentioned LGI Homes, Inc. (NASDAQ:LGIH) and explained its insights for the company. Founded in 2003, LGI Homes, Inc. (NASDAQ:LGIH) is a Texas-based construction company with a $2.3 billion market capitalization. LGI Homes, Inc. (NASDAQ:LGIH) delivered a -35.14% return since the beginning of the year, while its 12-month returns are down by -39.43%. The stock closed at $100.19 per share on July 05, 2022.

Here is what Carillon Scout Small Cap Fund has to say about LGI Homes, Inc. (NASDAQ:LGIH) in its Q1 2022 investor letter:

“LGI Homes (NASDAQ:LGIH) builds homes in 18 states with a focus on the entry-level homebuyer. The company focuses on renters and has move-in ready inventory. The stock has benefited over the past year as the pandemic, low interest rates, and limited supply have driven demand for standalone housing. During the quarter management lowered guidance for future closings and gross margin, leading the stock to struggle.”

goodluz/Shutterstock.com

Our calculations show that LGI Homes, Inc. (NASDAQ:LGIH) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. LGI Homes, Inc. (NASDAQ:LGIH) was in 22 hedge fund portfolios at the end of the first quarter of 2022, compared to 21 funds in the previous quarter. LGI Homes, Inc. (NASDAQ:LGIH) delivered a -1.80% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on LGI Homes, Inc. (NASDAQ:LGIH) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.