Murray Stahl, President and CEO of RENN Fund, Inc. (NYSEAMERICAN:RCG), has made a series of stock purchases totaling $99, according to a recent filing with the Securities and Exchange Commission. The transactions, all executed on May 1, 2024, involved the acquisition of RENN Fund's common stock at a price of $1.69 per share.
The SEC filing revealed that Stahl directly purchased 4 shares, while indirect transactions included 1 share acquired by his spouse, 6 shares by FROMEX EQUITY CORP, 24 shares by FRMO CORP, and another 24 shares by HORIZON COMMON INC. These indirect holdings are managed by entities in which Stahl has a pecuniary interest, though he disclaims beneficial ownership except to the extent of his personal financial interest.
Following these transactions, Stahl's direct holdings in RENN Fund increased to 5,033 shares. The indirect transactions, as noted in the filing's footnotes, do not include these directly held shares. The total ownership, including both direct and indirect shares, reflects Stahl's continued investment in the company.
The purchase by the CEO comes as an affirmation of his confidence in the company's value and prospects. Investors often monitor insider buying as it can be a signal of the leadership's belief in the company's future performance.
RENN Fund, Inc. is a publicly traded investment fund that focuses on providing its shareholders with long-term capital growth by investing in a diversified portfolio. The fund's investment approach has attracted attention from investors looking for exposure to a mix of assets.
The filing was signed on behalf of Murray Stahl by attorney-in-fact Jay Kesslen on May 2, 2024. The disclosed transactions are part of the routine disclosures required by company insiders to provide transparency regarding their dealings in the company's stock.
InvestingPro Insights
In light of Murray Stahl's recent stock purchases in RENN Fund, Inc., a look at the company's financial data and performance metrics from InvestingPro provides additional context for investors. According to the latest real-time data, RENN Fund reported revenue for the last twelve months as of Q4 2023 at $0.29 million, marking a substantial growth of 27.92%. This positive trend continued into Q4 2023, with a quarterly revenue growth of 26.26%. Despite these growth figures, the company's gross profit remained at $0.29 million with an impressive gross profit margin of 100%.
However, the company's basic and diluted earnings per share (EPS) for continuing operations stood at -$0.13, indicating that it was not profitable over the last twelve months. This aligns with one of the InvestingPro Tips highlighting the company's lack of profitability in this period. Furthermore, the company's short-term obligations surpass its liquid assets, which could present liquidity challenges, as suggested by another InvestingPro Tip. The valuation also implies a poor free cash flow yield, which may concern investors looking for income or signs of strong financial health.
For investors interested in the company's stock performance, RENN Fund has experienced a decline in its price total return over various time frames, including a -7.56% return over the past year. The stock is currently trading at 84.21% of its 52-week high, which could indicate a potential discount relative to its highest price point over the last year. Investors may also note the dividend yield of 0.97%, with the last dividend ex-date recorded on December 15, 2023.
For those looking to delve deeper into RENN Fund's financials and stock performance, InvestingPro offers a comprehensive suite of additional tips. There are more InvestingPro Tips available, providing in-depth analysis that could be pivotal in making informed investment decisions. Interested readers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription and gain access to these valuable insights.
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