Kenneth Shipley, Executive Vice President and 10% Owner of Legacy Housing Corp (LEGH, Financial), sold 10,000 shares of the company's stock on June 26, 2023. This move is part of a larger trend of insider selling at Legacy Housing Corp, which we will explore in more detail below.
Who is Kenneth Shipley?
Kenneth Shipley is a key figure at Legacy Housing Corp, serving as the company's Executive Vice President. He is also a 10% owner of the company, demonstrating his significant investment and belief in the company's potential. Over the past year, Shipley has sold a total of 68,039 shares and has not made any purchases.
About Legacy Housing Corp
Legacy Housing Corp is a leading player in the manufactured housing sector. The company designs, manufactures, and sells homes through a range of different distribution channels. It also provides after-sale services, including insurance and financing. Legacy Housing Corp is known for its commitment to quality and affordability, making it a popular choice for many homebuyers.
Insider Sell Analysis
The insider transaction history for Legacy Housing Corp shows a clear trend of insider selling. Over the past year, there have been 58 insider sells and only 1 insider buy. This could be a signal that insiders believe the stock is currently overvalued, or it could simply reflect personal financial decisions by the insiders.
Stock Price and Valuation
On the day of Shipley's recent sell, shares of Legacy Housing Corp were trading at $22.22, giving the company a market cap of $552.212 million. The price-earnings ratio is 8.45, which is slightly higher than the industry median of 8.3 but lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Legacy Housing Corp is fairly valued. The stock's price-to-GF-Value ratio is 1, indicating that the stock is priced appropriately based on its intrinsic value.
Conclusion
While Kenneth Shipley's recent sell of 10,000 shares may raise some eyebrows, it's important to consider the broader context. The overall trend of insider selling at Legacy Housing Corp could be a signal of overvaluation, but it could also reflect personal financial decisions by the insiders. Furthermore, the company's stock appears to be fairly valued according to the GuruFocus Value. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
