Insider Trading Report: Landsea Homes Corp (LSEA)

John Ho, CEO at Landsea Homes Corp (LSEA), recently picked up 30,769 shares. The buy increased his holdings by nearly 7 percent, and came to a total purchase price of just over $274,000.

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  • The buy comes following a number of director buys over the past several days. And company insiders have been further bullish on the stock going back into the last year. There have been no insider sales over the past three years.

    Insiders at the company own 77 percent of shares.

    Shares of the homebuilder have slid about 9 percent over the past year, even as revenue has risen by 40 percent and earnings have soared by 260 percent. Thanks to the strong earnings, shares trade at just 5 times forward earnings.

    Action to take: Markets are pricing in rising interest rates, but homebuilders should still fare well thanks to the imbalance between supply and demand for housing right now.

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  • Investors may like shares for appreciation over the coming months as fears over rising interest rates fade, although the stock doesn’t yet pay a dividend.

    Plus, given the company’s small size and focus on fast-growing West Coast markets, the company could be an attractive buyout candidate at the right price.

    Traders will have to look elsewhere in the homebuilder space for an opportunity, as options don’t currently trade on the company.


    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.

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