Curtis Drew Hodgson, Chairman of the Board at Legacy Housing Corp (NASDAQ:LEGH), has sold 6,000 shares of the company's common stock. The shares were sold at an average price of $25.60 each, resulting in a total transaction value of $153,600. Following this sale, Hodgson directly owns 508,522 shares. Additionally, he holds indirect ownership stakes through entities such as Hodgson Ventures, Hodgson 2015 Grandchild's Trust, and Cusach, Inc., with respective holdings of 1,000,000, 2,669,056, and 100,000 shares. The sale was conducted under a prearranged trading plan dated May 15, 2024.
In other recent news, Legacy Housing Corporation (NASDAQ:LEGH) announced mixed results for Q3 2024, with a decrease in product sales of $6.8 million (18.3%) but an increase in interest income from consumer loans by $1.5 million (17.3%). The company's net income also decreased by 1.8% to $15.8 million, and earnings per share fell by $0.01 (1.5%). Despite these results, Legacy Housing remains optimistic about future sales and production improvements, with a significant backlog of orders extending into Q1 2025 and plans to increase production rates in Q4 2024.
Legacy Housing also reported the sale of excess land for $2.7 million and the ongoing development of 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.
In other board developments, Legacy Housing appointed Skyler M. Howton, a seasoned Dallas-based attorney, as a new independent director. Ms. Howton will serve on the Compensation Committee, the Nominations and Corporate Governance Committee, and the Audit Committee. The board has determined that Ms. Howton meets the independence criteria set by the SEC and NASDAQ.
InvestingPro Insights
While Curtis Drew Hodgson's recent sale of Legacy Housing Corp (NASDAQ:LEGH) shares might raise eyebrows, a closer look at the company's financials through InvestingPro data provides additional context. Despite the sale, Legacy Housing maintains a solid financial position with a market capitalization of $616.76 million and a price-to-earnings ratio of 11.49, suggesting the stock may still be reasonably valued.
InvestingPro Tips highlight that Legacy Housing operates with a moderate level of debt and has liquid assets exceeding short-term obligations, indicating financial stability. This could explain why Hodgson retains a significant ownership stake despite the recent sale.
However, investors should note that analysts anticipate a sales decline in the current year, with revenue growth already showing a 29.12% decrease over the last twelve months. This aligns with another InvestingPro Tip revealing that four analysts have revised their earnings downwards for the upcoming period.
For those seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for Legacy Housing, providing a deeper understanding of the company's prospects and potential risks.
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