Legacy Housing Chairman Sells Over $400K in Stock

Legacy Housing Corp’s Chairman of the Board, Curtis Drew Hodgson, has recently sold a portion of his stock in the company, based on a filing with the Securities and Exchange Commission (SEC). Hodgson sold 14,420 shares at an average price of $27.96 each, amounting to approximately $403,183.

This transaction took place on September 23rd and was disclosed in a filing dated September 24th. Despite this sale, Hodgson retains a significant interest in Legacy Housing Corp, holding 633,421 shares directly. In addition, he possesses indirect ownership through various entities, including Hodgson Ventures, the Hodgson 2015 Grandchild’s Trust, and Cusach, Inc., which together account for over 3.7 million shares, as clarified in the footnotes of the SEC filing.

Headquartered in Bedford, Texas, Legacy Housing Corp specializes in the manufacturing of mobile homes. The company operates under the trading symbol LEGH and is incorporated in Delaware.

The recent sale was executed as part of a pre-arranged 10b5-1 trading plan, a strategy that enables company insiders to create predetermined plans for selling their stocks while ensuring they are not acting on any material non-public information. This approach helps mitigate concerns related to insider trading.

Such SEC filings are standard practice and contribute to transparency regarding insider transactions. Investors typically pay attention to these filings to assess the actions of company executives and board members, which can indicate their views on the company’s valuation and outlook.

In related news, Legacy Housing Corp has made significant progress in its financial recovery. The company has settled around $55 million in promissory notes stemming from a series of lawsuits due to defaults by the issuers. As part of the settlement, Legacy will gain clear title and possession of two mobile home communities located in Texas and Mississippi. To refinance the remaining debt, a new two-year promissory note worth $48 million will be issued, secured by over 1,000 mobile homes and two parks in Louisiana.

Legacy Housing has also reported strong financial results. For the first quarter, the company achieved earnings per share (EPS) of $0.60, exceeding estimates of $0.38, supported by record gross margins. Although there was a decrease in the number of home sections sold compared to the previous year, the average price per section showed improvement from the previous quarter.

B.Riley, an analytic firm, has responded to these developments by raising its price target for Legacy Housing from $22.00 to $25.00 while maintaining a neutral rating. The analysis highlights Legacy’s consistent value creation, with a focus on monitoring further improvements in gross margins and unit sales.

As Legacy Housing Corp continues to navigate the market, the recent actions of company insiders like Chairman Curtis Drew Hodgson are likely to attract investor attention.

Legacy Housing Corp currently holds a market capitalization of approximately $661.32 million, with a price-to-earnings (P/E) ratio of 12.3, which is consistent with the adjusted P/E ratio for the last twelve months, recorded at 12.28. Additionally, the company’s price to book ratio is 1.43, indicating it is valued at a premium over its book value.

Despite experiencing a revenue decline of approximately 28.94% in the past twelve months, Legacy Housing has maintained a strong gross profit margin of 50.97%. This metric is crucial as it reflects the company’s ability to manage production costs and generate profits.

Investors may also be interested in LEGH’s stock performance, which has shown a considerable 6-month price total return of 39.74%, signaling robust short-term growth.

Of particular note among operational insights, analysts have pointed out that Legacy’s liquid assets surpass its short-term obligations, suggesting financial stability. Furthermore, analysts anticipate that the company will be profitable this year, providing reassurance regarding its future earning potential.

In conclusion, these insights and financial data can assist investors in making informed decisions amid recent insider trading activity and the overall financial landscape of Legacy Housing Corp.