On September 12, 2023, Curtis Hodgson, Chairman of the Board at Legacy Housing Corp (LEGH, Financial), sold 17,400 shares of the company. This move comes amidst a year where the insider has sold a total of 651,218 shares and purchased none.
Curtis Hodgson is a co-founder of Legacy Housing Corp and has served as its Chairman since its inception. With over 35 years of experience in the manufactured housing industry, Hodgson has played a pivotal role in the company's growth and success.
Legacy Housing Corp is a leading player in the manufactured housing sector. The company designs, manufactures, and retails an array of high-quality, customizable homes to a diverse customer base across the United States. With a focus on affordability and quality, Legacy Housing Corp has established a strong market presence.
The insider's recent sell-off raises questions about the company's current valuation and future prospects. The stock was trading at $20.68 per share on the day of the insider's recent sell, giving the company a market cap of $524.907 million.
The company's price-earnings ratio stands at 8.15, which is lower than the industry median of 8.72 and also lower than the company’s historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its own historical standards.
However, the company's price-to-GF-Value ratio of 0.97 indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
The insider transaction history for Legacy Housing Corp shows a trend of more sells than buys over the past year. There have been 88 insider sells and only 1 insider buy during this period. This could be a signal that insiders believe the stock is currently overvalued, prompting them to sell their shares.
In conclusion, the recent sell-off by the insider, Curtis Hodgson, coupled with the company's current valuation metrics, suggests that the stock is fairly valued at its current price. However, the trend of insider selling could be a cause for concern for potential investors. As always, investors are advised to conduct their own thorough research before making any investment decisions.
