Robert Bates, President and CEO of Legacy Housing Corp (LEGH), recently bought 3,000 shares. The buy increased his stake by 17 percent, and came to a total cost of $55,980.
This marks the first insider buy at the company over the past two years. Otherwise, company executives and major shareholders have been regular and steady sellers of the stock over the past year.
Overall, company insiders own 57.9 percent of the company.
Legacy Housing is up 15 percent over the past year, slightly lagging the overall stock market. The manufactured home producer has seen revenues drop 18 percent, and earnings slide 13 percent.
However, the company’s focus on manufactured and tiny homes could make it a big winner in the construction space in the years ahead.
Even with the drop in demand over the past year, shares are cheaply valued at less than 8 times earnings. Plus, Legacy has almost no debt.
Action to take: Investors may like shares at current prices or on any drop lower as a long-term buy on housing, with an eye towards increased interest in smaller homes. At present, shares do not pay a dividend.
For traders, shares have dropped in recent weeks, but have started to trend higher. The January 2024 $20 calls, last going for about $1.50, could see mid-double-digit returns.
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 of the companies mentioned in this article.