In recent transactions involving Legacy Education Inc. (NASDAQ:LGCY), Robert DeRose, a ten percent owner of the company, has acquired 1,000 shares of common stock. The shares were purchased at a price of $6.83 each, totaling $6,830. This acquisition increases DeRose's direct and indirect holdings in the company, which include shares owned through various trusts and IRAs.
According to the filing, the shares are held in different accounts, including the Robert D. deRose & Susan deRose Family Trust and the Robert deRose IRA. These transactions reflect the ongoing investment interests of the DeRose family in Legacy Education, a company focused on educational services.
In other recent news, Legacy Education Inc. has made significant strides in its growth trajectory. The company recently announced its intention to acquire Contra Costa Medical (TASE:PMCN) Career College, a Northern California-based institution with over 500 students and 14 allied health programs. The $8 million deal, which is contingent upon customary closing conditions and regulatory approvals, will add programs like surgical technology and sterile processing to Legacy Education’s portfolio and expand its campus presence in California.
Legacy Education also announced the pricing of its initial public offering (IPO) at $4 per share, intending to offer 2.5 million shares. The move is projected to raise $10 million before underwriting discounts and offering expenses. Northland Securities, Inc. and Ladenburg Thalmann are leading the IPO, which includes a 30-day option for underwriters to purchase up to an additional 375,000 shares to cover over-allotments.
Analysts from Northland and Ladenburg Thalmann have shown optimism for Legacy Education's future, with Northland initiating coverage with an Outperform rating and Ladenburg Thalmann assigning a new Buy rating. These ratings coincide with Legacy Education's strategic expansion in the education sector, particularly in healthcare. The company's recent developments, including the planned acquisition of an additional college, are expected to further increase its student body and diversify its educational offerings.
InvestingPro Insights
Robert DeRose's recent acquisition of Legacy Education Inc. (NASDAQ:LGCY) shares aligns with several positive indicators highlighted by InvestingPro data. The company's stock has shown remarkable performance, with a 97.26% price total return over the past year and is currently trading near its 52-week high, at 99.12% of that peak. This strong momentum is further supported by significant returns over shorter time frames, including a 21.63% increase in just the past week.
InvestingPro Tips suggest that LGCY is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.16. This could indicate that the stock is potentially undervalued, which may have influenced DeRose's decision to increase his stake. Additionally, the company's financial health appears solid, with InvestingPro data showing that LGCY holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations.
The company's growth trajectory is also noteworthy, with revenue growth of 32.36% in the last twelve months and a robust EBITDA growth of 75.7% over the same period. These figures suggest that Legacy Education is experiencing significant business expansion, which could be attractive to investors like DeRose.
For readers interested in a more comprehensive analysis, InvestingPro offers 14 additional tips for LGCY, providing a deeper understanding of the company's financial position and market performance.
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