Curtis Drew Hodgson, Chairman of the Board at Legacy Housing Corp (NASDAQ:LEGH), recently sold a substantial number of shares in the company. Over the course of three days, Hodgson sold a total of 16,919 shares, with the transactions occurring on November 11, 12, and 13. The shares were sold at prices ranging from $27.31 to $27.52, generating total proceeds of approximately $465,474.
Following these transactions, Hodgson retains direct ownership of 525,822 shares. Additionally, he holds indirect ownership through various entities, including Hodgson Ventures, Hodgson 2015 Grandchild's Trust, and Cusach, Inc., amounting to over 3.6 million shares.
The sales were executed as part of a pre-arranged 10b5-1 trading plan, which allows insiders to set up a schedule for selling stocks to avoid any potential conflicts of interest.
InvestingPro Insights
While Curtis Drew Hodgson's recent sale of Legacy Housing Corp (NASDAQ:LEGH) shares has caught attention, it's crucial to consider the broader financial picture of the company. According to InvestingPro data, Legacy Housing Corp has a market capitalization of $649.38 million and operates with a P/E ratio of 11.79, suggesting a relatively modest valuation compared to some industry peers.
InvestingPro Tips highlight that Legacy Housing Corp operates with a moderate level of debt and maintains liquid assets that exceed short-term obligations. These factors indicate a solid financial foundation, which may provide some context to Hodgson's decision to sell shares as part of a pre-arranged plan rather than due to immediate financial concerns.
However, it's worth noting that revenue growth has been negative, with a -28.94% decline in the last twelve months as of Q2 2024. Despite this, the company remains profitable, with a gross profit margin of 50.97% and an operating income margin of 36.32% over the same period.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 5 more tips available for Legacy Housing Corp. These tips could provide valuable context to the insider selling activity and the company's overall financial health.
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