Legacy Housing Corporation (NASDAQ:LEGH) has reached a new 52-week high, with its shares trading at $27.19. This milestone reflects the company's consistent growth and strong performance in the market. Over the past year, Legacy Housing Corporation has seen a significant increase in its stock value, with a 1-year change of 15.68%. This upward trend underscores the company's robust financial health and its ability to deliver value to its shareholders. The new 52-week high serves as an affirmation of the company's solid market position and its potential for future growth.
In other recent news, Legacy Housing Corp. has been the subject of significant financial analysis following its first-quarter results for 2024. The company reported revenues in line with expectations and a record gross margin, resulting in earnings per share (EPS) of $0.60, surpassing the estimated $0.38. Despite a 20% year-over-year decline in the number of home sections sold, the average price per section fell by only 11% to $47,800, marking a significant recovery from the previous quarter.
Legacy Housing's management has focused on increasing the company's book value, which has grown by 13% compared to the previous year. In response to these developments, B.Riley has revised its estimates upward and raised the price target for Legacy Housing's stock from $22.00 to $25.00, while maintaining a Neutral rating.
Moreover, Legacy Housing initiated a share repurchase for the first time since 2020. B.Riley notes that Legacy Housing has consistently been a reliable creator of value, with a history of annual book value growth in the teens percentage range. The firm indicates that a more positive stance on Legacy Housing might be taken if there is evidence of sustained improvement in gross margins, consistent improvement in unit sales, and realization of potential value from the company's various development properties.
InvestingPro Insights
Legacy Housing Corporation (LEGH) has not only hit a new 52-week high but is also displaying strong financial metrics and market sentiment according to InvestingPro data. With a market capitalization of $660.19 million and a price-to-earnings (P/E) ratio that stands at a reasonable 12.34, the company shows a balance of value and profitability. The P/E ratio has remained stable, as indicated by the slight increase to 12.42 over the last twelve months as of Q1 2024.
In addition to these financials, InvestingPro Tips indicate that analysts are optimistic about LEGH's performance, having revised their earnings upwards for the upcoming period. This could suggest potential for continued growth in the company's stock value. Moreover, the company is trading near its 52-week high and has had strong returns over the last month with a 17.0% increase, and an impressive 33.22% over the last three months.
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