Curtis Drew Hodgson, the Chairman of the Board at Legacy Housing Corp (NASDAQ:LEGH), recently sold 1,300 shares of the company's common stock. The shares were sold at an average price of $27.02 each, totaling approximately $35,126. Following this transaction, Hodgson directly owns 577,341 shares. Additionally, he holds indirect ownership of shares through various entities, including Hodgson Ventures, which owns 1,000,000 shares, the Hodgson 2015 Grandchild's Trust with 2,669,056 shares, and Cusach, Inc. holding 100,000 shares. These transactions were conducted under a pre-established 10b5-1 plan.
In other recent news, Legacy Housing Corporation has made significant strides in its financial recovery process. The company recently settled several promissory notes originally valued at approximately $55 million. This settlement follows a series of lawsuits initiated by the company after a default on about $37 million of these notes. As part of the agreement, Legacy will receive clear title and possession of two mobile home communities in Texas and Mississippi, and will issue a new two-year promissory note valued at $48 million to refinance the remaining debt.
These recent developments also include record gross margins and an updated price target from B.Riley. The firm has adjusted its price target for Legacy Housing from $22.00 to $25.00, maintaining a neutral rating on the stock. This came after Legacy Housing's first-quarter results, where the company reported revenues that met expectations and a record gross margin leading to earnings per share (EPS) of $0.60, surpassing the estimated $0.38.
Analysts at B.Riley have noted that the company has consistently been a reliable creator of value, with a history of strong annual book value growth. They will be closely monitoring Legacy Housing for sustained improvement in gross margins, consistent improvement in unit sales, and realization of potential value from the company's various development properties.
InvestingPro Insights
While Curtis Drew Hodgson's recent sale of Legacy Housing Corp (NASDAQ:LEGH) shares might raise eyebrows, it's crucial to consider the broader financial picture of the company. According to InvestingPro data, LEGH's market capitalization stands at $613.02 million, with a P/E ratio of 11.3, suggesting the stock may be reasonably valued compared to its earnings.
An InvestingPro Tip indicates that LEGH operates with a moderate level of debt, which could be seen as a positive factor for long-term stability. This is particularly relevant in the context of the housing market, where financial flexibility can be crucial for navigating market fluctuations.
Another InvestingPro Tip reveals that LEGH has experienced a large price uptick over the last six months, with data showing a 26.33% price total return over that period. This aligns with the broader market trend and may explain the timing of Hodgson's stock sale.
It's worth noting that while the company has seen recent success, InvestingPro Tips also highlight that two analysts have revised their earnings downwards for the upcoming period. This could signal potential challenges ahead, making it essential for investors to monitor the company's performance closely.
For a more comprehensive analysis, InvestingPro offers 7 additional tips for LEGH, providing investors with a deeper understanding of the company's financial health and market position.
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