Legacy Housing Corp's (NASDAQ:LEGH) Chairman of the Board, Curtis Drew Hodgson, has recently sold shares of the company's stock, according to the latest SEC filings. On September 24, 2024, Hodgson sold a total of 509 shares at a price of $27.71, amounting to over $14,104.
The transaction was executed under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell shares at a predetermined time to avoid accusations of insider trading. Following the sale, Hodgson still holds a substantial number of shares directly and indirectly through various entities.
Hodgson's direct holdings after the sale amount to 632,912 shares of Legacy Housing Corp's common stock. Additionally, he is deemed to beneficially own shares held by Hodgson Ventures, Hodgson 2015 Grandchild's Trust, and Cusach, Inc., with direct ownership of 1,000,000, 2,669,056, and 100,000 shares, respectively. These holdings reflect Hodgson's significant ongoing investment in the company's future.
Investors often monitor insider transactions as they can provide insights into the company's performance and management's confidence in the business. The sale by Legacy Housing's Chairman may attract the attention of current and potential shareholders as they evaluate their investment in the company.
Legacy Housing Corp, based in Bedford, Texas, specializes in the manufacturing of mobile homes, a sector that has seen varying demand due to economic shifts and housing market trends. The company's stock is publicly traded on the NASDAQ, giving investors the opportunity to partake in the company's financial journey.
This recent filing provides transparency into the trading activities of Legacy Housing's top executives, ensuring that shareholders are well-informed about the movements within the company's leadership.
In other recent news, Legacy Housing Corporation has settled several promissory notes initially valued at $55 million. The settlement comes after a series of lawsuits following a default on about $37 million of these notes. As part of the agreement, Legacy Housing will acquire Forest Hollow Mobile Home Community in Texas and Cleveland Mobile Home Community in Mississippi. The company will also issue a new two-year promissory note valued at $48 million, secured by over 1,000 mobile homes and two mobile home parks in Louisiana.
In other developments, Legacy Housing reported strong first-quarter results, with revenues meeting expectations and a record gross margin leading to earnings per share (EPS) of $0.60, surpassing the estimated $0.38. Despite a 20% year-over-year decline in home sections sold, the company initiated a share repurchase for the first time since 2020.
Analyst firm B.Riley has responded to these recent developments by increasing its price target for Legacy Housing from $22.00 to $25.00, while maintaining a neutral rating on the stock. The firm highlighted Legacy Housing's consistent value creation and noted that the recent share buybacks contribute to a level of confidence. B.Riley will continue monitoring Legacy Housing for sustained improvement in gross margins and consistent improvement in unit sales.
InvestingPro Insights
As Legacy Housing Corp's (NASDAQ:LEGH) Chairman of the Board, Curtis Drew Hodgson, engages in stock transactions, it's insightful to consider the financial health and market performance of the company. According to InvestingPro data, Legacy Housing Corp has a market capitalization of approximately $665.19 million, indicating a mid-sized player in the mobile homes manufacturing sector. The company's Price-to-Earnings (P/E) ratio stands at 12.25, which may suggest a reasonable valuation relative to its earnings.
The company's stock has demonstrated resilience, with a strong return over the last three months, showing a 20.49% increase, and an even more impressive six-month price total return of 38.83%. This performance is a testament to the company's market position and could reflect investor confidence in its growth prospects. Additionally, Legacy Housing operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, which is an encouraging sign of financial stability.
InvestingPro Tips highlight that analysts predict Legacy Housing will be profitable this year and it has been profitable over the last twelve months. This profitability, combined with the company's solid return on assets of 11.11%, may be attractive to investors seeking companies with a track record of financial performance.
For those interested in further analysis and data points on Legacy Housing Corp, InvestingPro offers additional tips, including insights on revenue valuation multiples and dividend policies. As of now, there are 8 more InvestingPro Tips available for LEGH, which can be found by visiting https://www.investing.com/pro/LEGH. These tips can provide investors with a more comprehensive understanding of the company's financial health and future potential.
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