Insiders at Legacy Education Inc. (OTC:LGCY), a provider of educational services, have recently increased their holdings in the company. Notably, Robert deRose and Susan deRose, who are both ten percent owners of the issuer, have collectively purchased 5,000 shares of common stock at a price of $5.08 per share, amounting to a total investment of $25,400.
The transaction, dated October 7, 2024, was disclosed in a regulatory filing with the Securities and Exchange Commission. According to the filing, the shares are owned by the Robert D. deRose & Susan deRose Family Trust, with Robert and Susan deRose acting as co-trustees. This purchase has raised their direct holdings to 1,082,974 shares in the company.
The deRoses' involvement with Legacy Education Inc. extends beyond this recent acquisition. They are recognized as significant shareholders due to their status as ten percent owners. The filing also notes several other holdings, including shares owned by individual retirement accounts and family trusts, which are indirectly associated with the deRoses. However, they disclaim beneficial ownership of these securities, except to the extent of their pecuniary interest.
Legacy Education Inc. has not yet commented on these transactions, and the motives behind the insiders' stock purchases are not disclosed in the filing. Such insider activity is often closely monitored by investors as it can provide insights into the company's performance and the confidence that insiders have in the future prospects of the business.
Investors and market watchers will be keeping an eye on Legacy Education's stock performance and any further insider transactions that might signal the company's trajectory in the educational services sector.
In other recent news, Legacy Education Inc. announced the pricing of its initial public offering (IPO) at $4 per share, with the intention of raising $10 million before underwriting discounts and offering expenses. The company is offering 2.5 million shares, and Northland Securities, Inc. is managing the book-running, while Ladenburg Thalmann is the lead manager. The IPO includes a 30-day option for underwriters to purchase up to an additional 375,000 shares to cover any over-allotments. These recent developments indicate that Legacy Education aims to utilize the net proceeds from the IPO to invest in its facilities, develop new programs, and for other general working capital purposes. The closing of the offering is contingent upon customary closing conditions. Please note that the IPO securities will be available only through a prospectus, which can be obtained from Northland Securities, Inc. and Ladenburg Thalmann.
InvestingPro Insights
The recent insider purchases at Legacy Education Inc. (OTC:LGCY) align with several positive indicators highlighted by InvestingPro data. The company's stock has shown strong performance, with a significant 26.12% return over the last month, quarter, and six months. This upward trend is further supported by the stock trading at 90.54% of its 52-week high, suggesting investor confidence in the company's prospects.
InvestingPro Tips reveal that LGCY is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of just 0.13. This could indicate that the stock is undervalued, potentially explaining the insiders' decision to increase their holdings. Additionally, the company's profitability over the last twelve months and its ability to cover interest payments with cash flows demonstrate financial stability.
LGCY's revenue growth is noteworthy, with a 29.74% increase over the last twelve months and a 34.1% quarterly growth. The company's EBITDA has also seen substantial growth of 68.53%, reflecting improved operational efficiency. These metrics suggest that the educational services provider is experiencing robust business expansion, which may have influenced the insiders' investment decision.
It's worth noting that InvestingPro offers 11 additional tips for LGCY, providing investors with a more comprehensive analysis of the company's financial health and market position. For those seeking deeper insights into Legacy Education's potential, exploring these additional tips on InvestingPro could be valuable.
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