In a recent transaction, Murray Stahl, the CEO and CIO of Horizon Kinetics Holding Corp (NYSE:HKHC), has made a modest purchase of the company's common stock. The transaction, which took place on September 6, 2024, involved Stahl acquiring 8 shares at a price of $26.0 each, totaling $208.
This purchase comes at a time when investors are keenly observing insider transactions, as they can provide insights into the executives' confidence in their company's future prospects. Stahl's position as both CEO and CIO of Horizon Kinetics gives his investment choices significant weight in the eyes of shareholders and potential investors.
Following the transaction, the total number of shares directly owned by Stahl stands at 248,608. However, it is important to note that only 148 of these shares are available for trading. The rest of the shares were obtained as part of a merger between Horizon Kinetics LLC and Scott's Liquid Gold-Inc, which took place on August 1, 2024, and are not available for trading.
In addition to his direct holdings, Stahl has indirect ownership through several entities. He exercises discretion over shares owned by Horizon Common Inc., Kinetics Institutional Partners LP, Kinetics Partners LP, and Horizon Kinetics Asset Management LLC, disclaiming beneficial ownership except to the extent of his pecuniary interest. Furthermore, Stahl owns approximately 21% of the shares reported through Horizon Common Inc. and 16% through FRMO Corp., with the remaining shares not beneficially owned by him.
Overall, Stahl's recent purchase is a small addition to his substantial holdings in Horizon Kinetics, both direct and indirect. While the transaction may not significantly impact the market, it continues to build on Stahl's already notable investment in the company he leads.
InvestingPro Insights
As investors digest the news of Murray Stahl's recent stock purchase in Horizon Kinetics Holding Corp (NYSE:HKHC), it's valuable to consider some key financial metrics and insights from InvestingPro. The company, with a market capitalization of $461.02 million, appears to be trading at a low earnings multiple, which is an InvestingPro Tip indicating that the stock could be undervalued relative to earnings. Specifically, the adjusted P/E ratio for the last twelve months as of Q2 2024 is 6.96, a figure that may catch the eye of value-oriented investors.
Another InvestingPro Tip highlights that Horizon Kinetics holds more cash than debt on its balance sheet, which can be a sign of financial stability and may reassure investors of the company's ability to weather economic downturns. This tip aligns with the CEO's confidence in the company's prospects, as evidenced by his recent share purchase.
Looking at the company's profitability, Horizon Kinetics has been profitable over the last twelve months, with a gross profit margin of 50.81% and an operating income margin of 10.58%. These figures suggest a strong ability to convert revenue into profit, which is an essential consideration for investors assessing the company's performance.
For those interested in further insights, InvestingPro offers additional tips on Horizon Kinetics, providing a deeper analysis of the company's financial health and stock performance.
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