Legacy Housing Corp chairman sells over $370k in stock By Investing.com

Curtis Drew Hodgson, Chairman of the Board and a significant shareholder of Legacy Housing Corp (NASDAQ:), has sold a portion of his holdings in the company. According to the latest SEC filings, Hodgson offloaded 13,387 shares at an average price of $27.73, totaling approximately $371,221. The transaction took place on August 26, 2024, and was reported in a Form 4 document filed with the SEC.

Legacy Housing Corp, known for manufacturing mobile homes, has been a notable player in the housing sector. Its shares are traded under the ticker LEGH on the NASDAQ exchange. The recent sale by Hodgson represents a fraction of his overall holdings in the company. Following the transaction, he still directly owns 684,486 shares. Additionally, indirect holdings through entities like Hodgson Ventures, Hodgson 2015 Grandchild’s Trust, and Cusach, Inc. amount to a significant number of shares, indicating that Hodgson maintains a substantial interest in Legacy Housing Corp.

The shares were sold pursuant to a prearranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid any potential accusations of trading on nonpublic information. This plan was established on March 29, 2023, well in advance of the actual transaction date.

Investors often monitor insider transactions as they can provide insights into how the company’s top executives view the stock’s value and future prospects. However, it is also common for executives to sell shares for personal financial planning purposes, unrelated to their outlook on the company’s performance.

Legacy Housing Corp and its shareholders will continue to observe the actions of their executives, with Curtis Drew Hodgson’s recent transaction being just one of many factors that can influence the company’s stock performance.

In other recent news, Legacy Housing Corporation has settled approximately $55 million in promissory notes, following a default on about $37 million of these notes. The settlement grants the company clear title and possession of two mobile home communities in Texas and Mississippi, along with all related intangible assets. To refinance the remaining debt, Legacy will issue a new two-year promissory note valued at $48 million, secured by over 1,000 mobile homes and two mobile-home parks in Louisiana.

Furthermore, Legacy Housing’s recent earnings report showed record gross margins and 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 has increased its price target for Legacy Housing from $22.00 to $25.00, maintaining a neutral rating on the stock.

Recent developments also include Legacy Housing initiating a share repurchase for the first time since 2020. Analysts at B.Riley have noted the company’s consistent value creation, with a history of annual book value growth in the teens percentage range. They will continue to monitor Legacy Housing for sustained improvement in gross margins and unit sales, and potential value realization from the company’s various development properties.

InvestingPro Insights

Legacy Housing Corp (NASDAQ:LEGH) has been navigating a challenging financial landscape, as reflected in the latest metrics from InvestingPro. The company’s market capitalization stands at $650.21 million, with a Price to Earnings (P/E) ratio of 11.97, which is relatively low compared to industry averages, suggesting that the stock may be undervalued. Despite a decline in revenue growth over the last twelve months, ending Q2 2024, by -28.94%, Legacy Housing has managed to maintain a strong gross profit margin of 50.97%, indicating effective cost management.

Investors looking at the company’s financial health will find reassurance in two key InvestingPro Tips: Legacy Housing’s liquid assets exceed its short-term obligations, and the company operates with a moderate level of debt. These factors suggest a stable financial position that could weather potential market fluctuations. In addition, analysts predict that Legacy Housing will be profitable this year, which is a positive signal for potential investors.

For those interested in the insider’s perspective, it’s notable that Chairman Curtis Drew Hodgson still retains a significant number of shares, even after the recent sale. This aligns with the InvestingPro Tip highlighting that Hodgson maintains a substantial interest in the company. Moreover, Legacy Housing does not pay a dividend, which could indicate that it is reinvesting earnings back into the company to fuel growth.

For further insights and additional tips on Legacy Housing Corp that could inform investment decisions, investors can visit https://www.investing.com/pro/LEGH, where 5 more InvestingPro Tips are available. These tips provide a deeper dive into the company’s financials and future outlook, offering valuable guidance in a volatile market.

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