Landsea Holdings Corp, a significant shareholder in Landsea Homes Corp (NASDAQ:LSEA), has sold a substantial portion of its stake in the company. The transactions, which took place on December 9 and 10, involved the sale of 2,521,740 shares and 378,260 shares respectively, at a price of $10.25 per share. The total value of these sales amounted to $29.7 million. The sale comes as the stock has experienced an 8% decline over the past week, with the company currently valued at approximately $376 million. According to InvestingPro analysis, the stock appears to be fairly valued at current levels.
Following these transactions, Landsea Holdings now holds 6,135,151 shares of Landsea Homes. The sales were part of a secondary offering managed by B. Riley Securities, Inc., with Ever Fast Holdings Limited also participating as a selling stockholder. While this sale represents significant insider movement, InvestingPro data reveals that management has been actively buying back shares, and the company maintains strong liquidity with current assets exceeding short-term obligations. Subscribers to InvestingPro can access 8 additional key insights about LSEA's financial health and market position through the comprehensive Pro Research Report.
In other recent news, Landsea Homes Corporation announced a public offering of over 5 million shares at $10.25 per share, aiming to raise approximately $62.4 million. The company itself is not selling any shares in this transaction. Furthermore, Landsea Homes has settled previous service-related claims with Landsea Holdings Corporation with a payment of approximately $4.3 million, resolving outstanding financial matters.
On the earnings front, the homebuilder reported a 29% year-over-year increase in its third quarter net income, reaching $11.1 million. Earnings per share rose by 36% to $0.30, and home sales revenue saw a 26% boost, reaching $325.6 million, credited to a 40% increase in deliveries, totaling 629 homes.
Looking ahead, Landsea Homes projects full-year deliveries to be between 2,890 and 3,000 units, with average sales prices estimated between $520,000 and $535,000. The company aims to reduce its debt-to-capital ratio to the mid-40% range by the end of Q1 2025. These recent developments suggest a positive outlook for the company's future performance.
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