Legacy Education Inc. sees $17,450 purchase by ten percent owners

Published 19/11/2024, 01:34
Legacy Education Inc. sees $17,450 purchase by ten percent owners

Robert deRose and Susan deRose, ten percent owners of Legacy Education Inc. (NASDAQ:LGCY), have reported a significant transaction involving the company's common stock. According to a recent SEC filing, the deRose Family Trust acquired 2,500 shares on November 15, 2024, at a price of $6.98 per share, totaling $17,450.

The shares were purchased directly by the Robert D. deRose & Susan deRose Family Trust, with Robert and Susan deRose acting as co-trustees. Following this transaction, the trust now holds 1,087,974 shares in Legacy Education Inc.

This acquisition reflects the continued investment interest from the deRose family, who are significant stakeholders in the educational services company.

In other recent news, Legacy Education Inc. has announced a series of significant developments. The for-profit post-secondary education company recently set the price of its initial public offering (IPO) at $4 per share, planning to offer 2.5 million shares. This move is anticipated to generate $10 million before underwriting discounts and offering expenses. Northland Securities, Inc. and Ladenburg Thalmann are leading the IPO, which includes a 30-day option for underwriters to purchase up to an additional 375,000 shares to cover over-allotments.

Additionally, Legacy Education has entered into an agreement to acquire substantially all assets of Contra Costa Medical (TASE:PMCN) Career College, a Northern California-based institution, for $8 million. This acquisition, contingent upon customary closing conditions and regulatory approvals, will add programs like surgical technology and sterile processing to Legacy Education’s portfolio, and expand its campus presence in California.

In terms of analyst coverage, Legacy Reserves, associated with Legacy Education, has been assigned an Outperform rating by Northland and a Buy rating by Ladenburg Thalmann. These ratings indicate an optimistic view on the company's future performance. These are the latest developments for the company.

InvestingPro Insights

The recent stock acquisition by the deRose Family Trust aligns with several positive indicators for Legacy Education Inc. (NASDAQ:LGCY). According to InvestingPro data, LGCY's stock has shown remarkable performance, with a 59.45% price total return over the past three months, six months, and year-to-date. This strong momentum suggests growing investor confidence in the company's prospects.

LGCY's financial health appears robust, as highlighted by two key InvestingPro Tips. The company holds more cash than debt on its balance sheet, indicating a strong liquidity position. Additionally, LGCY's cash flows can sufficiently cover interest payments, which points to solid financial management and reduced risk of financial distress.

From a valuation perspective, LGCY is trading at a low P/E ratio relative to its near-term earnings growth, with a current P/E ratio of 10.34. This suggests the stock may be undervalued compared to its growth potential, which could explain the insider buying activity.

For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for LGCY, providing a deeper understanding of the company's financial position and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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