Legacy Education Inc. (OTCMKTS:LGCY) insiders have recently increased their holdings in the company, with purchases totaling over $112,000. The transactions, which occurred between September 26 and September 30, 2024, involved the acquisition of company shares at prices ranging from $4.08 to $4.80.
The largest purchase was made on September 26, where 20,000 shares were bought at a price of $4.15 per share. This was followed by a purchase of 5,000 shares on the same day at $4.08 per share. Additional transactions on September 27 and September 30 saw 1,000 shares bought at $4.38 and $4.80 per share, respectively.
These shares were acquired by entities associated with Robert D. deRose and Susan deRose, who are both reported as ten percent owners of Legacy Education Inc. The Robert D. deRose & Susan deRose Family Trust, dated November 18, 1986, made significant purchases, owning shares both directly and indirectly through the trust with Robert and Susan deRose as co-trustees.
Footnotes in the report indicate that while Robert deRose and Susan deRose have indirect ownership through trusts, they disclaim beneficial ownership in certain securities except to the extent of any pecuniary interest therein. This includes shares owned by the Susan deRose – IRA BDA and the Robert deRose IRA.
These insider transactions may be of interest to investors as they represent a substantial investment by insiders in the company’s stock. The accumulation of shares by insiders is often looked at as a sign of confidence in the company’s future prospects.
Legacy Education Inc. specializes in providing educational services and has been incorporated in Nevada. The recent insider buying activity provides a noteworthy development for current and potential investors monitoring the company’s stock performance and insider confidence.
In other recent news, Legacy Education Inc. has set the pricing for its initial public offering (IPO) at $4 per share. The company intends to offer 2.5 million shares, targeting to raise $10 million before deductions related to underwriting and offering expenses. This development includes a 30-day option for underwriters to acquire an additional 375,000 shares to cover any over-allotments, with Northland Securities, Inc. serving as the sole book-running manager and Ladenburg Thalmann as the lead manager.
The funds raised from the IPO are planned to be used for investment in facilities, development of new programs, and for other general working capital purposes. The offering’s closing is contingent upon customary closing conditions and is scheduled for later this year. The IPO securities will be available only through a prospectus, with copies obtainable from Northland Securities, Inc. and Ladenburg Thalmann once available.
These recent developments come with forward-looking statements regarding the company’s plans and prospects. These include the anticipated trading commencement and closing dates and the expected use of proceeds. Nonetheless, these statements are subject to market conditions and other factors that could impact the completion of the IPO.
InvestingPro Insights
The recent insider buying activity at Legacy Education Inc. (OTCMKTS:LGCY) appears to have coincided with a period of strong stock performance. According to InvestingPro data, LGCY has seen impressive returns across various timeframes. The stock has gained 10.93% in the past week and 21.14% over the last month, quarter, and year-to-date periods. This consistent upward trend aligns with the insiders’ decision to increase their holdings, potentially signaling their belief in the company’s continued growth.
The stock’s previous closing price of $4.77 is within the range of the insider purchases reported, which occurred between $4.08 and $4.80. This suggests that the insiders were willing to buy at prices close to current market levels, further underlining their confidence in the stock’s value.
An InvestingPro Tip notes that LGCY has a low price-to-book ratio, indicating it could be undervalued relative to its assets. This tip may provide additional context to the insider buying, as insiders often purchase shares when they believe the stock is undervalued.
It’s worth noting that LGCY has an average daily trading volume of 220,000 shares over the past three months. This liquidity information can be valuable for investors considering the stock’s tradability in light of the recent insider activity.
InvestingPro offers 8 additional tips for LGCY, providing a more comprehensive analysis for investors interested in delving deeper into the company’s prospects.
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