Insider Activity Report: Landsea Homes (LSEA)

John Ho, CEO of Landsea Homes (LSEA), recently bought 17,241 shares. The buy increased his position by 4 percent, and came to a total cost of $199,996. He was joined by the company COO, who made a similar buy.

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  • Three company directors also bought shares around the same time, with one picking up $100,000 and two others buying under $30,000. Insiders were largely buyers in the first half of last year, but were generally sellers in the second half.

    Overall, Landsea insiders own 56.1 percent of shares.

    The real estate developer is up 102 percent over the past year. While mortgage rates have remained high, existing home sales have dropped. That’s allowed homebuilders to sell.

    That doesn’t mean these companies have fared well. Landsea saw earnings growth get cut in half over the last year.

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  • However, even with the move higher in shares, they’re still inexpensive at 12 times forward earnings. And Landsea trades at less than half its price to sales.

    Action to take: Landsea likely has more upside this year as interest rates come down. That should make it easier for the company to become profitable, which could add further fuel to shares.

    Landsea is a buy at current prices or on any pullback.

    For traders, shares are at their 52-week high and trending higher. The August $15 calls, last trading for about $0.70, could see mid-to-high double-digit returns from here.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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