Mark Travis’s Intrepid Capital Management’s Top 5 Stock Picks

In this article, we discuss the top 5 stock picks of Mark Travis’s Intrepid Capital Management. If you want our detailed analysis of these stocks, go directly to Mark Travis’s Intrepid Capital Management’s Top 10 Stock Picks. 

5. LGI Homes, Inc. (NASDAQ:LGIH)

Intrepid Capital Management’s Stake Value: $5,099,000

Percentage of Intrepid Capital Management’s 13F Portfolio: 2.69%

Number of Hedge Fund Holders: 17

LGI Homes, Inc. (NASDAQ:LGIH), one of the top stock picks of Mark Travis’s Intrepid Capital Management, is a construction company engaged in developing housing communities in the Southwestern US region. Intrepid Capital Management owns 31,488 shares in LGI Homes, Inc. (NASDAQ:LGIH), valued over $5 million, representing 2.69% of the firm’s portfolio at the end of June this year. 

As of the second quarter of 2021, 17 hedge funds were long LGI Homes, Inc. (NASDAQ:LGIH), up from 16 in the preceding quarter. 

LGI Homes, Inc. (NASDAQ:LGIH), on November 2, reported a Q3 EPS of $4.05, beating analysts’ estimates by $0.04. Revenue for the quarter also exceeded expectations at $751.61 million by $19.62 million. 

JPMorgan analyst Michael Rehaut kept an Underweight rating on LGI Homes, Inc. (NASDAQ:LGIH) on October 14, lowering the price target from $156 to $115, maintaining a constructive stance of the homebuilding sector. 

Here is what Fiduciary Management has to say about LGI Homes, Inc. (NASDAQ:LGIH) in its Q3 2021 investor letter:

“LGI Homes engages in the design, construction, marketing, and sale of new single-family homes in the U.S. It participates in 34 markets across 18 states, with 9,339 closings per year as of 2020. It is the tenth largest residential home builder in the U.S., and focuses on building affordable, entry-level spec homes that are move-in ready. The company primarily markets its homes to renters in order to convert them into homeowners. It operates through the following segments: Central (39% of closings, 36% of revenues), Southeast (26% of closings, 24% of revenues), Florida (13% of closings, 12% of revenues), West (11% of closings, 12% of revenues), and Northwest (11% of closings, 16% of revenues). The company was founded in 2003, completed its IPO in 2013, and is headquartered in The Woodlands, Texas…” (Click here to see the full text)