Truist, Other Investors Increase Multi-Million Dollar Stakes in Legacy Housing Corporation (LEGH), Corp Update by CEO Duncan Bates, with Added Facts, Analysis
MarketBeat says: “Legacy Housing currently has a “Moderate Buy” rating among analysts…” But in making that statement, the stock market information source apparently downplayed what might have been their headline. Namely, Truist Financial Corp increased its already multimillion dollar stake in the firm. So too did Redmond Asset Management LLC, as the information that follows from MarketBeat on 9.26.2022 will reflect among other details. Further into this report from another media source is an insight on the Vanguard stake in Legacy. Note that this will be part one of a planned multipart series of reports on Legacy Housing and the insights from MarketBeat will be followed by additional information with more MHProNews analysis and commentary.
Note that MarketBeat’s ‘about us’ page says: “I, Matthew Paulson, founded MarketBeat in 2011 with the mission of creating high-quality stock research tools and making them available to investors at all levels.” Further into their ‘about us’ page they stated: “More than ten million people visit MarketBeat.com each month and nearly three million investors subscribe to MarketBeat’s daily email newsletter. MarketBeat’s platform has received numerous awards from organizations including the American Association of Individual Investors (AAII), Entrepreneur Magazine, Financial Times, Inc., and Prairie Business.”
With that preface in mind, here is the MarketBeat Report on Legacy Housing Corp (LEGH). In this and the next third-party information the highlighting is added by MHProNews, but the text is as provided by the named/linked source.
Legacy Housing (NASDAQ:LEGH) Price Target Increased to $36.00 by Analysts at Lake Street Capital
Legacy Housing (NASDAQ:LEGH…) had its price objective increased by research analysts at Lake Street Capital from $34.00 to $36.00 in a report released on Monday, The Fly reports. Lake Street Capital’s target price points to a potential upside of 109.67% from the stock’s previous close.
Several other equities research analysts have also recently weighed in on LEGH. TheStreet upgraded Legacy Housing from a “c+” rating to a “b” rating in a report on Wednesday, August 31st. B. Riley increased their price objective on Legacy Housing from $18.00 to $19.00 and gave the stock a “neutral” rating in a report on Wednesday, September 14th. Finally, EF Hutton Acquisition Corp I assumed coverage on Legacy Housing in a report on Monday, August 8th. They issued a “buy” rating and a $25.00 price objective for the company.
Legacy Housing Stock Performance
NASDAQ LEGH opened at $17.17 on Monday. Legacy Housing has a fifty-two week low of $11.96 and a fifty-two week high of $28.84. The company has a current ratio of 2.38, a quick ratio of 1.34 and a debt-to-equity ratio of 0.02. The stock has a 50 day simple moving average of $16.35 and a two-hundred day simple moving average of $17.12.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently made changes to their positions in the company. Redmond Asset Management LLC lifted its stake in shares of Legacy Housing by 0.9% in the 1st quarter. Redmond Asset Management LLC now owns 99,552 shares of the company’s stock valued at $2,136,000 after purchasing an additional 853 shares during the period. BNP Paribas Arbitrage SA increased its position in Legacy Housing by 102.5% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 2,703 shares of the company’s stock valued at $35,000 after buying an additional 1,368 shares in the last quarter. Dorsey Wright & Associates bought a new position in Legacy Housing during the 1st quarter valued at approximately $41,000. Lazard Asset Management LLC increased its position in Legacy Housing by 64.3% during the 2nd quarter. Lazard Asset Management LLC now owns 6,205 shares of the company’s stock valued at $80,000 after buying an additional 2,428 shares in the last quarter. Finally, Truist Financial Corp increased its position in Legacy Housing by 1.8% during the 2nd quarter. Truist Financial Corp now owns 211,927 shares of the company’s stock valued at $2,765,000 after buying an additional 3,802 shares in the last quarter. Hedge funds and other institutional investors own 21.34% of the company’s stock.
About Legacy Housing
Legacy Housing Corporation builds, sells, and finances manufactured homes and tiny houses primarily in the southern United States. The company manufactures and provides for the transport of mobile homes; and offers wholesale financing to dealers and mobile home parks, as well as a range of homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms. … ##
From Legacy Housing is this press release date 9.23.2022 is the following corporate-provided information.
Legacy Housing Corporation Reports Second Quarter 2022 Financial Results and Regains Compliance with SEC Filings
September 23, 2022
BEDFORD, Texas, Sept. 23, 2022 (GLOBE NEWSWIRE) — Legacy Housing Corporation (the “Company” or “Legacy”, NASDAQ: LEGH) today announced its financial results for the Second quarter ended June 30, 2022.
Financial Highlights
Comparison of Six Months ended June 30, 2022 and 2021
Revenue was $124.1 million, an increase of 40.2% from 2021 1H revenue of $88.5 million.
Income before tax was $40.7 million, an increase of 45.2% from 2021 1H income before tax of $28.1 million.
Net income was $33.4 million, an increase of 42.8% from 2021 1H net income of $23.3 million.
Fully diluted earnings per share was $1.35, an increase of 40.1% from 2021 1H earnings per share of $0.96.
Duncan Bates, President and Chief Executive Officer, stated: “Our team has been running hard all summer to publish Legacy’s delayed SEC filings and regain NASDAQ compliance. Ron Arrington has done a nice job leading the accounting department and working with our new auditors. Legacy plans to file its Third quarter results on-time and will resume quarterly earnings calls with investors beginning next quarter. With this hurdle behind us, I look forward to working with Curt and Kenny to execute Legacy’s growth plan and create value for our shareholders.”
This shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Company’s securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Legacy Housing Corporation
Legacy builds, sells and finances manufactured homes and “tiny houses” that are distributed through a network of independent retailers and company-owned stores. The Company also sells directly to manufactured housing communities. Legacy is the sixth largest producer of manufactured homes in the United States as ranked by number of homes manufactured based on the information available from the Manufactured Housing Institute. With current operations focused primarily in the southern United States, we offer our customers an array of quality homes ranging in size from approximately 390 to 2,667 square feet consisting of 1 to 5 bedrooms, with 1 to 3 1/2 bathrooms. Our homes range in price, at retail, from approximately $22,000 to $140,000.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance. Legacy undertakes no obligation to update any such forward-looking statements after the date hereof, except as required by law. Investors should not place any reliance on any such forward-looking statements. … ##
Additional Information with More MHProNews Analysis and Commentary in Brief
From the Legacy Housing’s website investor page is the following, with the highlighted portion in yellow added by MHProNews, as in the above.
Corporate Profile
Legacy Housing Corporation is the fourth largest producer of manufactured homes in the United States and a recognized leader and innovator in the manufactured housing industry. With current operations focused on the southwest and southeast of the United States, Legacy offers an array of products that help make quality housing affordable again.”
So, it seems that Legacy has provided conflicting information to potential investors on their ranking among manufactured housing producers – are they #4 or #6? – an item that ought to be easily remedied.
LinkedIn profiles are normally generated by the person described in the profile. That said, here is the profile of Duncan Bates as of 9.28.2022.
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Legacy has navigated its share of controversies, as MHProNews has uniquely reported. See the linked report below for an example.
But Legacy, per senior executives at competing companies is indeed respected by its rivals, as their corporate profile suggested: “a recognized leader and innovator in the manufactured housing industry.”
Legacy’s longtime partners, Curtis Drew “Curt” Hodgson and Kenneth E. “Kenny” Shipley have arguably navigated more challenging hurdles than the pandemic when they managed to not only survive the ‘assault’ by the Berkshire Hathaway owned Clayton Homes “moat.” They have perhaps tongue in cheek turned that moat phrase of Buffett’s on its head in MHVille by claiming their own “moat.”
That said, Legacy leaders periodically make fascinating and insightful statements about the often-sobering realities of MHVille. The pull quotes that follow are examples.
MHProNews plans a follow up that may include some insights into this aspect of Legacy Housing’s plans going forward. Note that Hodgson’s Legacy Housing was an MHI member at the time this comment was made, and per MHI’s member directly, still is.
As Yahoo reported on 8.26.2022 citing Simply Wall St, “Legacy Housing is not owned by hedge funds. From our data, we infer that the largest shareholder is Kenneth Shipley (who also holds the title of Top Key Executive) with 38% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we’re glad to see a company insider play the role of a key stakeholder. Curtis Hodgson is the second largest shareholder owning 23% of common stock, and The Vanguard Group, Inc. holds about 2.0% of the company stock.”
So, while numbers of publicly traded manufactured home industry firms have a modest level of “insider” ownership, Legacy reportedly has a substantial alignment between Shipley, Hodgson and their various investors.
To get a better sense of the value of Legacy vs. other publicly traded firms, or to learn more about the industry or LEGH, see the linked reports.
Depending on the source considered, analysts estimate that Legacy is worth from $8 to $18 more per share than it is currently priced at. As a disclosure, MHProNews holds no stake nor takes a position on any publicly traded MHVille firm.
Notice: as a reminder, MHProNews is expected to be in the storm path of Hurricane Ian. So, this article was scheduled for posting in advance in anticipation of possible power and/or internet service outages in our area.
Trade media can and should be a ‘cheer leader’ when it is appropriate to do so. But authentic trade media also holds the powers that be to account. Who says? The American Press Institute.
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Our son has grown quite a bit since this 12.2019 photo. All on Capitol Hill were welcoming and interested in our manufactured housing industry related concerns. But Congressman Al Green’s office was tremendous in their hospitality. Our son’s hand is on a package that included the Constitution of the United States, bottled water, and other goodies.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
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