LGCY

Legacy Education ($LGCY) CEO's Major Purchase Draws Attention Amid Q3 50% Growth and Insider Confidence Signals

11/20/2025 00:11

Legacy Education ($LGCY) CEO's recent significant purchase is drawing investor attention. CEO LeeAnn Rohmann purchased 5,000 shares at $8.68 per share on November 18th, representing an investment of approximately $43,420. This direct purchase by the CEO signals strong management confidence in the company's future value proposition. Legacy Education is a California-based healthcare education company specializing in programs such as Ultrasound Technician, Cardiac Sonography, Nursing, Medical Assisting, and Dental Assisting. The company serves students nationwide through its campus network including High Desert Medical College and Central Coast College, with current enrollment of 3,495 students. The CEO's purchase isn't an isolated action. Major shareholder Robert DeRose has been consistently buying shares since September 2024. Starting with a purchase of 25,000 shares at $4.12 per share on September 26, 2024, he made 13 separate purchases totaling approximately $410,000 through March 2025. His pattern of buying during price weakness suggests a long-term value investment perspective. These insider purchases gain significance when viewed alongside company performance. Legacy Education achieved 50% revenue growth in Q3 2025, reaching $18.6 million in revenue driven by enrollment exceeding 3,000 students. Annual revenue stands at approximately $64.17 million with an 11.74% net profit margin, demonstrating solid profitability in the education services sector. Stock price movement reflects this fundamental improvement. Shares rose from $5.77 in October 2024 to $12.51 in September 2025, generating approximately 117% returns. While current prices have corrected from the annual high of $13.89, analysts maintain an average price target of $13.45, suggesting further upside potential. Structural growth in healthcare education provides a favorable environment. An aging population increases healthcare service demand, expanding the need for related professional workforce. Legacy Education's programs offer practical skills achievable in relatively short timeframes, appealing to both job-seeking students and employers. Financial health remains strong. The company holds $20.32 million in cash with only $700,000 in net debt, maintaining low financial leverage. The debt-to-equity ratio of 43.07% provides adequate financial flexibility for growth investments or acquisitions. However, risks require attention. Education services heavily depend on federal Title IV funding, making them sensitive to policy changes. The Trump administration's announced plan to dismantle the Department of Education introduces policy uncertainty. Additionally, sustaining enrollment growth in a competitive education market remains challenging. Key metrics for investors include quarterly enrollment changes and new program approvals. The company continues launching programs like MRI, Cardiac Sonography, and Surgical Technology, with their enrollment and job placement rates determining future growth. Next earnings are scheduled for February 12, 2026. Legacy Education's valuation appears attractive at current market cap of $120 million against annual revenue of $64 million. The P/E ratio of 17.74x trades below the education services industry average of 20-25x, suggesting relative undervaluation. Given consistent insider buying, robust earnings growth, and structural market expansion, the stock may offer compelling opportunities for medium to long-term investors.