Stock in Focus: Legacy Housing Corporation (NASDAQ: LEGH)

Loretta Morfin

I am Loretta Morfin and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets.

I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

Address: 3966 Euclid Avenue, San Luis Obispo, CA 93401, USA
Phone: (+1) 805-361-3810
Email: lorettamorfin@importtourism.com
Loretta Morfin

BEDFORD, Texas, June 26, 2019 – Shares of Legacy Housing Corporation (NASDAQ: LEGH) declined -2.61% to $12.31. The stock grabbed the investor’s attention and traded 23.100K shares as compared to its average daily volume of 80.93K shares. The stock’s institutional ownership stands at 15.90%.

Legacy Housing Corp. (LEGH) recently reported net income of $7.20M in its first quarter.

Financial Highlights:

  • Net revenue for the first quarter of 2019 was $38.00M, contrast to $42.70M in the first quarter of 2018, a decrease of $4.70M or 11%.  The first quarter of 2018 included home sales of about $8.90M as a subcontractor operating under a contract with FEMA.  Excluding the FEMA home sales in 2018, there was a net increase in organic net revenue from the first quarter of 2018 to 2019 of $4.20M, or a 12.4% improvement.
  • Our interest income in the first quarter of 2019 was $5.50M, a 25% increase from the $4.40M recorded in the first quarter of 2018.
  • Our consumer loan portfolio outstanding principal balance increased by $1.70M net in the first quarter of 2019 to $98.90M, inclusive of the allowance for loan loss and other discounts. Our manufactured home park loan portfolio outstanding principal balance increased by $4.60M to a total of $62.50M, an 8% increase from the end of 2018.
  • The income tax expense for the first quarter of 2019 was $2.00M, contrast to about $4.00M in the same period of 2018. This decrease in tax expense was mainly attributable to the one-time recognition of deferred taxes of $2.10M in the first quarter of 2018 related to the partnership conversion to a corporation.
  • Net income was $7.20M in the first quarter of 2019, contrast to $5.40M for the comparable period in 2018, which equates to a 33% increase in net income.

LEGH has a market value of $313.41M while its EPS was booked as $0.92 in the last 12 months. The stock has 25.46M shares outstanding. In the profitability analysis, the company has gross profit margin of 35.40%. Analyst recommendation for this stock stands at 2.00.

Loretta Morfin

Loretta Morfin

I am Loretta Morfin and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking. Address: 3966 Euclid Avenue, San Luis Obispo, CA 93401, USA Phone: (+1) 805-361-3810 Email: lorettamorfin@importtourism.com