Executive Vice President Kenneth Shipley Sells 17,400 Shares of Legacy Housing Corp (LEGH)
On July 25, 2023, Kenneth Shipley, Executive Vice President of Legacy Housing Corp (NASDAQ:LEGH), sold 17,400 shares of the company. This move is part of a series of insider transactions that have been taking place over the past year.
Kenneth Shipley is a key figure at Legacy Housing Corp, serving as the Executive Vice President. His role involves overseeing the strategic direction of the company and ensuring its growth and profitability. His recent sale of shares is noteworthy and warrants a closer look.
Legacy Housing Corp is a leading player in the manufactured housing sector. The company designs, manufactures, and retails manufactured homes that cater to a wide range of customers, from entry-level buyers to retirees. Legacy Housing Corp's business model is built on providing affordable, high-quality homes, which has helped it carve a niche in the market.
Over the past year, Kenneth Shipley has sold a total of 105,439 shares and has not made any purchases. This trend is mirrored in the overall insider transaction history of Legacy Housing Corp, which shows 1 insider buy and 70 insider sells over the same period.
The relationship between insider transactions and stock price is often seen as a key indicator of a company's health. In the case of Legacy Housing Corp, the stock was trading at $23.5 per share on the day of Kenneth Shipley's recent sale, giving the company a market cap of $583.906 million.
The price-earnings ratio of Legacy Housing Corp stands at 8.77, which is lower than the industry median of 8.88 and also lower than the company's historical median price-earnings ratio. This suggests that the stock is currently undervalued.
The GuruFocus Value of Legacy Housing Corp is $22.49, resulting in a price-to-GF-Value ratio of 1.04. This indicates that the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the companys past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent sale of shares by Kenneth Shipley, coupled with the overall insider transaction trend at Legacy Housing Corp, provides valuable insights for investors. While the stock appears to be fairly valued at present, it is crucial to keep an eye on future insider transactions and other key indicators to gauge the company's health and potential for growth.
This article first appeared on GuruFocus.
