Why Shares Of LGI Homes Surged

Shares of LGI Homes Inc (NASDAQ: LGIH) surged higher by nearly 9 percent at $23.60 Friday morning after the company reported a business update.

LGI Homes saw an all-time record for closings during a single month in December with 433 homes closed. The company also noted a record-setting quarterly closings of 946 homes during the fourth quarter of 2015.

LGI Homes also added that it finished 2015 with 3,404 homes closed, also marking a new record as it surpassed its prior record of 2,356 home closings in 2014.

At the end of 2015, LGI Homes had 52 active selling communities.

"We are extremely pleased with our record breaking year and proud to deliver such strong results," said Eric Lipar, LGI Homes chairman and CEO. "We continue to see robust demand for homeownership in our markets and uphold a positive outlook for 2016. Assuming that general economic conditions, including interest rates, and mortgage availability in 2016 are similar to those in 2015, we believe we will close more than 4,000 homes during 2016."