LGIH Shares Plunge 11.19% Amid Expansion

LGI Homes (LGIH) shares fell 1.67% today, marking the fourth consecutive day of decline, with a total drop of 11.19% over the past four days. The share price hit its lowest level since April 2020, with an intraday decline of 3.41%.

The strategy of buying LGIH shares after they reached a recent low and holding for one week resulted in poor performance over the past five years. The strategy yielded a return of -4.10%, significantly underperforming the benchmark return of 50.02%. The excess return was -54.12%, and the CAGR was -1.75%. The strategy had a maximum drawdown of -53.09% and a Sharpe ratio of -0.04, indicating high risk and negative returns.

LGI Homes Inc. recently announced its expansion into the Triad region of North Carolina, adding five new communities to its portfolio. This strategic move highlights the company's commitment to growth and its efforts to meet the increasing demand for housing in the region. The expansion is expected to enhance LGI Homes' market presence and drive potential sales growth, which could positively influence its stock performance.