Legacy Education Inc. (NASDAQ:LGCY) recently reported insider activity involving a significant purchase of its common stock. Robert deRose, in his capacity as a co-trustee of the Robert D. deRose & Susan deRose Family Trust, acquired 2,500 shares of Legacy Education's common stock on October 23, 2024, at a price of $5.40 per share. This transaction totals approximately $13,500.
Following this acquisition, the trust now holds a total of 1,085,474 shares. The shares are owned directly by the trust and indirectly by Robert and Susan deRose as co-trustees. The deRose family, as ten percent owners, have a notable stake in Legacy Education, reflecting their continued confidence in the company's prospects.
In other recent news, Legacy Reserves has been assigned an Outperform rating by Northland, indicating positive expectations for the company's growth. This comes as Legacy Reserves continues to expand, with recent plans to acquire an additional college, anticipated to increase its student body by approximately 500. This acquisition is expected to be finalized by the end of 2024, expanding Legacy's educational offerings and market reach.
Simultaneously, Legacy Reserves received a new Buy rating from Ladenburg Thalmann, setting a price target of $8.20 for the company's shares. This development underscores Legacy's strategic acquisitions and diversification of its educational offerings.
In related developments, Legacy Education Inc. announced the pricing of its initial public offering (IPO) at $4 per share, with an aim to raise $10 million before underwriting discounts and offering expenses. The IPO includes a 30-day option for underwriters, led by Northland Securities and Ladenburg Thalmann, to purchase up to an additional 375,000 shares to cover over-allotments.
The company intends to use the net proceeds from the IPO to invest in its facilities, develop new programs, and for other general working capital purposes. These are the latest developments in the recent news for Legacy Reserves and Legacy Education Inc.
InvestingPro Insights
The recent insider purchase by Robert deRose aligns with several positive indicators for Legacy Education Inc. (NASDAQ:LGCY). According to InvestingPro data, LGCY's revenue growth has been impressive, with a 29.74% increase over the last twelve months and a 34.1% quarterly growth. This robust top-line expansion suggests that the company's educational services are gaining traction in the market.
InvestingPro Tips highlight that LGCY is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of just 0.14. This could indicate that the stock is undervalued compared to its growth prospects, potentially explaining the insider's decision to increase their stake.
Moreover, the company's financial health appears solid. An InvestingPro Tip notes that LGCY holds more cash than debt on its balance sheet, while another confirms that its liquid assets exceed short-term obligations. These factors contribute to financial stability and may provide the company with flexibility for future growth initiatives.
Despite a recent 15.55% drop in stock price over the past week, LGCY has shown strong returns over longer periods, with a 25.62% gain over the last month, three months, and six months. This performance, coupled with the insider purchase, may signal confidence in the company's long-term trajectory.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for LGCY, providing a deeper understanding of the company's financial position and market performance.
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