Legacy Housing (NASDAQ:LEGH) Shares Gap Up - Here's Why

Key Points

• Legacy Housing shares surged at the open, rising from a prior close of $29.36 to $32.51 before trading at $32.0650.
• Analyst sentiment remains mixed: Weiss Ratings upgraded the stock to “buy” and Wall Street Zen to “strong-buy,” while Zacks Research downgraded it to “hold.” The consensus rating is “Hold,” with a $21.00 price target.
• The company exceeded quarterly expectations, reporting $0.99 in EPS versus a $0.72 estimate and revenue of $66.35 million versus $64.08 million expected; institutional investors own 89.35% of the stock.

Legacy Housing Corporation (NASDAQ:LEGH - Get Free Report) shares gapped up prior to trading on Tuesday. The stock had previously closed at $29.36, but opened at $32.51. Legacy Housing shares last traded at $32.0650, with a volume of 8,806 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Weiss Ratings raised Legacy Housing from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, October 21st. Wall Street Zen upgraded Legacy Housing from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. Finally, Zacks Research downgraded shares of Legacy Housing from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $21.00.

Legacy Housing Trading Down 1.8%

The company has a market cap of $751.33 million, a P/E ratio of 14.58 and a beta of 0.75. The company's 50-day moving average price is $28.25 and its two-hundred day moving average price is $24.50.

Legacy Housing (NASDAQ:LEGH - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.99 EPS for the quarter, topping the consensus estimate of $0.72 by $0.27. The business had revenue of $66.35 million for the quarter, compared to analysts' expectations of $64.08 million. Legacy Housing had a net margin of 28.56% and a return on equity of 9.53%. As a group, analysts anticipate that Legacy Housing Corporation will post 2.32 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Dimensional Fund Advisors LP lifted its stake in Legacy Housing by 7.0% during the first quarter. Dimensional Fund Advisors LP now owns 955,771 shares of the company's stock valued at $19,526,000 after purchasing an additional 62,224 shares during the last quarter. BlackRock Inc. bought a new stake in Legacy Housing during the second quarter worth approximately $16,714,000. Philadelphia Financial Management of San Francisco LLC acquired a new position in Legacy Housing in the second quarter worth approximately $11,937,745. Punch & Associates Investment Management Inc. acquired a new position in Legacy Housing in the second quarter worth approximately $11,235,000. Finally, Bard Associates Inc. acquired a new position in Legacy Housing in the second quarter worth approximately $4,720,000. Institutional investors own 89.35% of the company's stock.

About Legacy Housing

Legacy Housing Corporation is a manufacturer and seller of manufactured homes. The company produces homes in a range of sizes and floor plans, including single-section and multi-section models designed for residential use. Its products are marketed under the Legacy Housing brand and are intended to provide an alternative to traditionally built housing.

The company sells manufactured homes through a combination of retail locations, independent dealers and wholesale channels. Legacy Housing also provides financing options to qualified homebuyers and dealers, supporting the purchase of its homes.

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