Legacy Stock Story

LEGH
 Stock
  

USD 17.04  0.34  1.96%   

Legacy Housing Working Capital is most likely to decrease significantly in the upcoming years. The last year's value of Working Capital was reported at 16.7 Million. The current Asset Turnover is estimated to increase to 0.54, while Average Assets are projected to decrease to roughly 338 M. The primary intention for this outlook is to break down Legacy potential for July. We are going to examine if Legacy Housing is reasonably priced going into July.
Published over a month ago
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Is Legacy Housing (NASDAQ:LEGH) outlook positive for July 2022?

The company secures a Beta (Market Risk) of 1.2705, which conveys a somewhat significant risk relative to the market. Let's try to break down what Legacy's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Legacy Housing will likely underperform. Even though it is essential to pay attention to Legacy Housing Corp price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Legacy Housing exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Legacy Housing Corp has an expected return of -0.74%. Please be advised to verify Legacy Housing Corp information ratio, value at risk, kurtosis, as well as the relationship between the sortino ratio and semi variance to decide if Legacy Housing Corp performance from the past will be repeated at some point in the near future.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Legacy Housing Corp. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Legacy Housing

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Legacy Housing's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Legacy Housing in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Legacy Housing. Your research has to be compared to or analyzed against Legacy Housing's peers to derive any actionable benefits. When done correctly, Legacy Housing's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Legacy Housing Corp.

How important is Legacy Housing's Liquidity

Legacy Housing financial leverage refers to using borrowed capital as a funding source to finance Legacy Housing Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Legacy Housing financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Legacy Housing's total debt and its cash.

How does Legacy utilize its cash?

To perform a cash flow analysis of Legacy Housing, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Legacy Housing is receiving and how much cash it distributes out in a given period. The Legacy Housing cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Legacy Housing Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 60.3 Million

Legacy Housing exotic insider transaction detected

Legal trades by Legacy Housing insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Legacy insider trading alert for general transaction of common stock par value $0.001 per share by Lane Joseph Phillip, the corporate stakeholder, on 22nd of July 2022. This event was filed by Legacy Housing Corp with SEC on 2022-07-22. Initial filing of beneficial ownership - SEC Form 3 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Legacy Housing Investor Appetite?

Legacy Housing Corp exhibits very low volatility with skewness of -0.21 and kurtosis of -0.5. However, we advise investors to further study Legacy Housing Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Legacy Housing's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Legacy Housing's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Legacy Housing Implied Volatility

Legacy Housing's implied volatility exposes the market's sentiment of Legacy Housing Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Legacy Housing's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Legacy Housing stock will not fluctuate a lot when Legacy Housing's options are near their expiration.

Returns Breakdown

0.11
Return on Assets
0.14
Return on Equity
0.17
Return Capital
Return on Assets0.11
Return on Equity0.14
Return Capital0.17
Return on Sales0.29

Legacy Housing has 95 percent odds to go over $14.3 this year

Current market risk adjusted performance indicator falls down to -0.55. Possible price rise? Legacy Housing Corp exhibits very low volatility with skewness of -0.21 and kurtosis of -0.5. However, we advise investors to further study Legacy Housing Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Legacy Housing's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Legacy Housing's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Legacy Housing Implied Volatility

Legacy Housing's implied volatility exposes the market's sentiment of Legacy Housing Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Legacy Housing's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Legacy Housing stock will not fluctuate a lot when Legacy Housing's options are near their expiration.

Our Final Takeaway

While other companies in the residential construction industry are either recovering or due for a correction, Legacy Housing may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 13th of June 2022, we believe Legacy Housing is currently undervalued. It responds to the market and projects very low probability of distress in the next two years. Our latest 90 days Buy-Hold-Sell recommendation on the company is Cautious Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Legacy Housing Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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