Curtis Drew Hodgson, Chairman of the Board at Legacy Housing Corp (NASDAQ:LEGH), recently sold 17,300 shares of the company's common stock. The shares were sold at an average price of $26.53 each, totaling approximately $458,969. Following this transaction, Hodgson holds 491,222 shares directly. Additionally, he maintains indirect ownership 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. with 100,000 shares. The sale was conducted under a 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell stocks.
In other recent news, Legacy Housing Corporation (NASDAQ:LEGH) announced a series of noteworthy developments. The corporation appointed Skyler M. Howton, a seasoned Dallas-based attorney, as a new independent director to its Board following the resignation of Francisco J. Coll. Ms. Howton will serve on several committees and brings a wealth of legal expertise, particularly in litigation management and product liability claims.
In terms of financial performance, Legacy Housing reported mixed results for Q3 2024. The company experienced a decrease in product sales by $6.8 million (18.3%) but saw an increase in interest income from consumer loans by $1.5 million (17.3%). Net income also decreased by 1.8% to $15.8 million, and earnings per share fell by $0.01 (1.5%).
Despite these figures, the corporation remains optimistic about future sales and production improvements. A significant backlog of orders is extending into Q1 2025, and there are plans to increase production rates in Q4 2024. Legacy Housing also sold excess land for $2.7 million and is in the process of developing 1,100 pads near Austin. As part of its strategic plans, the company is opening new dealerships and focusing on adding independent dealers in strategic locations.
InvestingPro Insights
To provide additional context to Curtis Drew Hodgson's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Legacy Housing Corp (NASDAQ:LEGH).
As of the latest data, Legacy Housing Corp has a market capitalization of $645.99 million and a P/E ratio of 11.95, suggesting a relatively modest valuation compared to some industry peers. The company's revenue for the last twelve months stands at $163.72 million, although it's worth noting that there has been a revenue decline of 29.12% over this period.
Despite the revenue contraction, Legacy Housing Corp maintains a strong gross profit margin of 50.17% and an impressive operating income margin of 35.32%. These figures indicate that the company has been able to maintain profitability even in the face of declining sales.
InvestingPro Tips highlight that Legacy Housing Corp operates with a moderate level of debt and that its liquid assets exceed short-term obligations. These factors contribute to the company's financial stability, which may be reassuring to investors in light of the insider sale.
Another InvestingPro Tip points out that analysts anticipate a sales decline in the current year, which aligns with the recent revenue trends. However, it's also noted that analysts predict the company will remain profitable this year, suggesting confidence in Legacy Housing Corp's ability to manage costs effectively.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into Legacy Housing Corp's financial health and future prospects.
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