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Taking Gains On LGI Homes

|Includes: LGI Homes, Inc. (LGIH)

It was just over a month ago I said LGI Homes was undervalued. Record home closings in May sent the stock up about 16% this month and nearly 30% from the lows in May. I'm taking gains now given the stock is approaching my $39 target price and I don't see much upside from there. The stock is the most overbought (RSI well above 70) it's been in the past year.

LGIH Chart

LGIH data by YCharts

Additional disclosure: I sold my LGI Homes position today