Legacy Housing Corp (NASDAQ:LEGH) Chairman of the Board, Curtis Drew Hodgson, has recently sold a significant portion of his holdings in the company. On October 9, 2024, Hodgson sold 5,288 shares of Legacy Housing Corp at an average price of $26.29 per share, resulting in a total transaction value of approximately $139,021.
This sale was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to establish predetermined trading schedules to sell stocks at a time when they are not in possession of material non-public information. This can help to avoid any potential allegations of insider trading.
Following the transaction, Hodgson still holds a substantial amount of Legacy Housing Corp stock, both directly and indirectly. Directly, he owns 605,121 shares. Additionally, through various entities, he maintains indirect ownership, which includes 1,000,000 shares owned by Hodgson Ventures, 2,669,056 shares by Hodgson 2015 Grandchild's Trust, and 100,000 shares by Cusach, Inc. Hodgson, as the general partner of Hodgson Ventures and the controller of Cusach, Inc., may be deemed to beneficially own these shares.
Investors and market watchers often pay close attention to insider sales and purchases as they can provide valuable insights into a company's financial health and future prospects. However, it's important to note that there can be many reasons for an insider to sell shares, and such transactions do not always necessarily indicate a lack of confidence in the company.
Legacy Housing Corp, based in Bedford, Texas, specializes in the manufacturing of mobile homes, a sector that has seen growth due to the demand for affordable housing solutions. The company's stock performance and market activities continue to be a point of interest for investors in the housing sector.
In other recent news, Legacy Housing Corporation , a mobile homes manufacturer, has settled approximately $55 million in promissory notes. The settlement follows a series of lawsuits after a default on about $37 million of these notes. As part of the agreement, Legacy will acquire the Forest Hollow Mobile Home Community in Texas and the Cleveland Mobile Home Community in Mississippi. To refinance the remaining debt, the company will issue a new two-year promissory note valued at $48 million, backed by over 1,000 mobile homes and two mobile-home parks in Louisiana.
In other developments, Legacy Housing reported record gross margins and met revenue expectations in its first-quarter results. The company also reported earnings per share 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.
B.Riley, a financial firm, has increased its price target for Legacy Housing from $22.00 to $25.00, while maintaining a neutral rating on the stock. The firm also noted that Legacy Housing has consistently been a reliable creator of value, with a history of annual book value growth in the teens percentage range. These are some of the recent developments surrounding Legacy Housing Corporation.
InvestingPro Insights
To provide additional context to Curtis Drew Hodgson's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Legacy Housing Corp (NASDAQ:LEGH).
As of the latest data, Legacy Housing Corp has a market capitalization of $626.78 million, indicating its significant presence in the manufactured housing sector. The company's P/E ratio stands at 11.58, suggesting that the stock is trading at a relatively modest valuation compared to its earnings.
One InvestingPro Tip highlights that Legacy Housing operates with a moderate level of debt, which could be seen as a positive factor in the current economic environment where interest rates have been rising. This moderate debt level may provide the company with financial flexibility and stability.
Another relevant InvestingPro Tip notes that Legacy Housing has experienced a large price uptick over the last six months. This aligns with the timing of Hodgson's stock sale and may indicate that he is capitalizing on the recent stock price appreciation.
It's worth noting that despite the recent stock sale by the Chairman, Legacy Housing remains profitable. The company's revenue for the last twelve months as of Q2 2024 was $169.39 million, with a gross profit margin of 50.97%. This robust profitability is further supported by an InvestingPro Tip stating that analysts predict the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Legacy Housing Corp, providing a deeper understanding of the company's financial health and market position.
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