Legacy Housing Corporation (NASDAQ:LEGH) stock soared to a 52-week high, reaching $28.6, as the company continues to capitalize on the robust demand in the affordable housing sector. This milestone reflects a significant uptrend in the company's market performance, with a commendable 1-year change of 20.97%. Investors have shown increased confidence in Legacy Housing's business model and growth strategy, which has been reflected in the stock's strong rally over the past year. The company's focus on manufacturing and providing quality, cost-effective homes has resonated well with the market, propelling the stock to new heights.
In other recent news, Legacy Housing Corporation has been in the spotlight due to an array of financial developments. The company reported first-quarter results that met revenue expectations and achieved a record gross margin, leading to earnings per share (EPS) of $0.60, surpassing the estimated $0.38. Despite a 20% decline in the number of home sections sold year-over-year, the average price per section fell by just 11% to $47,800, marking a significant recovery from the previous quarter.
Legacy Housing's management has been focusing on increasing the company's book value, which has grown by 13% compared to the previous year. In response to these developments, B.Riley revised its estimates upward and raised the price target for Legacy Housing's stock from $22.00 to $25.00, maintaining a neutral rating.
Despite a decrease in product sales and net income for the first quarter, Legacy Housing saw an increase in interest income from its loan portfolios and a rise in book value per share. The company also initiated a share repurchase for the first time since 2020. These recent developments are being closely monitored as indicators of Legacy Housing's ongoing performance and potential for growth.
InvestingPro Insights
As Legacy Housing Corporation (LEGH) reaches new market milestones, real-time data from InvestingPro offers a comprehensive look at the company's financial health and stock performance. LEGH's market capitalization stands at a solid $686.94 million, with a Price/Earnings (P/E) ratio of 13.01, indicating a potentially attractive valuation in the affordable housing sector. The company's Price/Book ratio is 1.54 as of the last twelve months leading into Q1 2024, suggesting that the stock might be reasonably priced relative to its book value.
InvestingPro Tips highlight that analysts have recently revised their earnings expectations upwards for the upcoming period, signaling confidence in LEGH's future performance. Additionally, with a strong return over the last month of 23.15% and over the last three months of 38.68%, the stock's momentum is evident. These figures underscore the company's robust performance in the market, aligning with the investor optimism mentioned in the article. For those interested in deeper analysis, there are 10 additional InvestingPro Tips available, offering more insights into LEGH's market prospects.
The company's operational strength is also notable, with a Gross Profit Margin of 49.2% and an Operating Income Margin of 35.08%, illustrating its efficiency and profitability in the affordable housing space. While the Revenue Growth has seen a decline of 28.17% over the last twelve months, LEGH's solid profit margins and positive returns may continue to attract investor interest. For a more detailed financial analysis and additional expert tips, investors can refer to Legacy Housing Corporation on InvestingPro.
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