Tracy V. Maitland, Chairman, President, and CEO of Advent Convertible & Income Fund (NYSE:AVK), recently acquired a significant amount of the company's common stock. According to a recent SEC filing, Maitland purchased a total of 13,179 shares on October 17, 2024. The shares were acquired at a price of $11.28 each, amounting to a total transaction value of $148,659.
The transactions were part of a rights offering, as noted in the filing. Following these purchases, Maitland's direct ownership of Advent Convertible & Income Fund shares increased to 52,717 shares. This latest acquisition reflects Maitland's continued investment in the fund, which focuses on convertible securities and income-generating investments.
In other recent news, Advent Convertible & Income Fund initiated a rights offering for its shareholders, as noted in a recent SEC filing. This offering allows current shareholders to acquire additional common shares. The fund has entered into agreements with Advent Capital Management, LLC and UBS Securities LLC to manage the offering, and with Equiniti Trust Company, LLC and EQ Fund Solutions, LLC to facilitate the offering.
On a related note, Derek Medina, a trustee of the fund, has resigned due to other professional commitments. His departure, which was not due to any disagreements with the fund's operations, policies, or practices, has led to a decrease in the board size from eight to seven members.
These are the latest developments in Advent Convertible & Income Fund's operations, and they do not indicate any further changes to the fund's management or operational structure. The fund continues to operate under the regulatory framework of the Securities Exchange Act of 1934.
InvestingPro Insights
Tracy V. Maitland's recent acquisition of Advent Convertible & Income Fund (NYSE:AVK) shares aligns with several key insights from InvestingPro. The fund's current dividend yield stands at an impressive 12.32%, underscoring one of the InvestingPro Tips that AVK "pays a significant dividend to shareholders." This high yield could be a contributing factor to Maitland's decision to increase his stake in the company.
Moreover, AVK has maintained dividend payments for 22 consecutive years, demonstrating a long-term commitment to shareholder returns. This consistency in dividend payments may provide investors with a sense of stability, especially in the current market environment.
The fund's recent performance shows a strong 1-year price total return of 35.86%, indicating positive momentum. However, shorter-term metrics reveal some volatility, with a 3-month price total return of -7.36%. This recent dip might have presented an attractive entry point for Maitland's purchase.
It's worth noting that the RSI suggests the stock is in oversold territory, according to another InvestingPro Tip. This technical indicator, combined with the recent price decline, could signal a potential buying opportunity that Maitland has capitalized on.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 5 more InvestingPro Tips available for AVK, which could provide valuable context for understanding the fund's financial health and market position.
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