WEST PALM BEACH, FL – AFC Gamma, Inc. (NASDAQ:AFCG) has reported that its Executive Chairman and Chief Investment Officer, Leonard M. Tannenbaum, has purchased additional shares of the company's stock, worth over $1 million.
According to the latest SEC filings, Tannenbaum made multiple purchases of AFC Gamma's common stock over two days. On June 5, 2024, he acquired 31,335 shares at a weighted average price of $12.09. The following day, Tannenbaum continued to increase his holdings by buying 27,500 shares at an average of $11.98 and another 30,000 shares at $11.95 per share. The transactions were executed in multiple trades within the price ranges of $11.90 to $12.10, reflecting the weighted average prices reported.
These recent acquisitions have significantly boosted Tannenbaum's stake in AFC Gamma, with the reporting indicating a post-transaction ownership of 3,803,473 shares held directly. Additionally, Tannenbaum is associated with the Leonard M. Tannenbaum Foundation, which now holds 159,217 shares indirectly. It is noted that Tannenbaum disclaims beneficial ownership of certain reported securities, including those held by his spouse and the foundation, except to the extent of his pecuniary interest.
The reported total value of the purchases amounts to approximately $1,066,790, showcasing a strong vote of confidence from Tannenbaum in the company's prospects.
Investors often view stock purchases by top executives as a positive sign that the leadership has faith in the company's future performance and growth potential. Tannenbaum's recent investment decisions could be interpreted as a bullish indicator for AFC Gamma's direction.
AFC Gamma, Inc., headquartered in West Palm Beach, specializes in real estate and construction, focusing on providing growth capital to cannabis operators. The company's stock is publicly traded on the NASDAQ under the ticker symbol AFCG.
In other recent news, AFC Gamma, Inc. has announced solid performance in the first quarter of 2024, with distributable earnings of $0.49 per basic weighted average share of common stock. The company's Board of Directors declared a $0.48 dividend per share, marking the fourth consecutive quarter of such a payout. AFC Gamma has also outlined its post-spin-off board structures for itself and for Sunrise Realty Trust, Inc. (SUNS), following the planned mid-2024 spin-off of its real estate portfolio into SUNS. Jodi Hanson Bond and Jim Fagan will step down from the AFC Gamma Board of Directors upon the spin-off's completion and join the SUNS Board of Directors. Alexander Frank is expected to be appointed to the SUNS Board but will retain his position on the AFC Gamma Board. These are recent developments that investors should be aware of. The company remains positive about the cannabis industry's outlook, with U.S. sales expected to reach $32 billion in 2024. AFC Gamma is well-positioned in early-stage and near-term adult-use transition states, with a third of its portfolio exposed to Ohio, Florida, and Pennsylvania.
InvestingPro Insights
In light of the recent stock purchases by AFC Gamma's Executive Chairman, Leonard M. Tannenbaum, investors may be interested in the company's financial health and market position. According to InvestingPro data, AFC Gamma (NASDAQ:AFCG) currently holds a market capitalization of $246.35 million, with a Price/Earnings (P/E) ratio standing at 19.88 for the last twelve months as of Q1 2024. This suggests a valuation that may be attractive compared to historical earnings.
The company's dividend yield is notably high at 15.82%, as of the latest data, which could be appealing to income-focused investors. An InvestingPro Tip highlights that AFC Gamma pays a significant dividend to shareholders, underscoring a potential income stream for investors. Additionally, the company's liquid assets exceed its short-term obligations, indicating a strong liquidity position that may reassure investors of the company's ability to meet its immediate financial commitments.
While revenue has shown a decline of 28.09% over the last twelve months as of Q1 2024, AFC Gamma has been profitable during this period, and analysts predict the company will remain profitable this year. This is an encouraging sign for investors looking for stability in earnings. For those seeking more detailed analysis and additional InvestingPro Tips, including earnings revisions and profitability forecasts, visit https://www.investing.com/pro/AFCG. There are currently four additional InvestingPro Tips available, which can be accessed with a subscription. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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