Legacy Housing Corp (NASDAQ:LEGH) has reported recent stock transactions by Chairman of the Board Curtis Drew Hodgson, according to the latest SEC filings. Hodgson, who is also a significant shareholder, sold a total of 19,345 shares of the company's common stock in two separate transactions.
On September 3, Hodgson sold 2,045 shares at a price of $26.68 per share. A few days later, on September 9, he sold an additional 17,300 shares at a lower price of $25.65 per share. The total value of the shares sold amounted to approximately $498,305, with a price range between $25.65 and $26.68 for the shares disposed of.
Following these transactions, Hodgson still maintains a substantial stake in the company. Direct holdings after the sales are reported at 665,141 shares. Additionally, Hodgson has indirect ownership through various entities. Hodgson Ventures, a Texas limited partnership, holds 1,000,000 shares, while Hodgson 2015 Grandchild's Trust possesses 2,669,056 shares. Another 100,000 shares are owned by Cusach, Inc., over which Hodgson also has control.
The shares were sold pursuant to a previously established 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
Legacy Housing Corp, headquartered in Bedford, Texas, specializes in the manufacturing of mobile homes. These stock transactions come as part of the regular financial activities of corporate executives and are publicly disclosed as per SEC regulations.
In other recent news, Legacy Housing Corporation has made significant strides in its financial recovery process. The firm has successfully settled a series of promissory notes, originally valued at approximately $55 million, following a default by the makers. The settlement agreement, which includes clear title and possession of two mobile home communities, will see Legacy issue a new promissory note valued at $48 million, secured by over 1,000 mobile homes.
Legacy's decision not to set a loan loss provision indicates confidence in the value of the collateral securing the new note. This development is part of the company's ongoing efforts to streamline its financial recovery process.
Furthermore, Legacy Housing Corporation has been in the spotlight following record gross margins and an updated price target from B.Riley. The firm has raised its price target for Legacy Housing to $25.00, maintaining a neutral rating. This change follows the company's first-quarter results, which saw revenues meeting expectations and a record gross margin leading to earnings per share (EPS) of $0.60, surpassing the estimated $0.38.
B.Riley analysts have noted Legacy Housing's consistent value creation and are monitoring the company for sustained improvement in gross margins and unit sales. These are the recent developments in the company's operations.
InvestingPro Insights
As Legacy Housing Corp (NASDAQ:LEGH) navigates the market, recent data from InvestingPro shows a mixed financial landscape. The company's market capitalization stands at $649.73 million, reflecting its current valuation in the market. With a Price-to-Earnings (P/E) ratio of 12.01, Legacy Housing Corp appears to be trading at a level that suggests investors are expecting some growth or stability in earnings. However, the company's revenue has seen a decline, with a -28.94% change over the last twelve months as of Q2 2024, indicating potential challenges in the company's sales performance.
Despite the recent insider stock transactions by Chairman Curtis Drew Hodgson, InvestingPro Tips indicate that Legacy Housing Corp is projected to be profitable this year, with analysts predicting positive earnings. This aligns with the company's history of profitability over the last twelve months. In terms of financial health, the company operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, suggesting a stable financial footing for the near future. It is also worth noting that Legacy Housing Corp does not pay a dividend, which could be a factor for income-focused investors to consider.
For those interested in a deeper analysis, InvestingPro provides additional insights with 5 more InvestingPro Tips available for LEGH, which can be found at https://www.investing.com/pro/LEGH. These tips could offer further guidance on the company's stock performance and financial health, aiding investors in making more informed decisions.
InvestingPro's fair value estimate for LEGH stands at $24.19, contrasting with an analyst target of $31. This discrepancy may provide an interesting point of discussion for investors considering the stock's potential and current price movements. With the next earnings date scheduled for November 6, 2024, stakeholders will be watching closely to see how the company's financials align with market expectations and performance metrics.
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