Daniel Black, a trustee of Advent Convertible & Income Fund (NYSE:AVK), recently acquired 1,000 shares of the company's common stock. The transaction, which took place on October 17, amounted to a total value of $11,280, with each share priced at $11.28. Following this purchase, Black's total direct ownership in the fund stands at approximately 21,998.58 shares. This acquisition was made as part of a rights offering, according to the latest SEC filings.
In other recent news, Advent Convertible & Income Fund initiated a rights offering to its shareholders, as per a recent SEC filing. The offering allows existing shareholders to purchase additional common shares of the fund. The fund has entered into agreements with Advent Capital Management, LLC and UBS Securities LLC to manage the offering, with Equiniti Trust Company, LLC and EQ Fund Solutions, LLC facilitating it as subscription and information agents.
In related developments, Derek Medina has resigned from his trustee role at Advent Convertible & Income Fund due to other professional commitments. Following Medina's resignation, the fund's Board of Trustees has reduced its members from eight to seven. This change does not hint at further alterations to the fund's management or operational structure.
These are the latest developments concerning Advent Convertible & Income Fund, highlighting the fund's proactive strategies and governance updates. Investors are advised to refer to the fund's financial statements and exhibits filed with the SEC for further details.
InvestingPro Insights
Daniel Black's recent acquisition of Advent Convertible & Income Fund (NYSE:AVK) shares aligns with some intriguing financial metrics and trends. According to InvestingPro data, AVK currently boasts a substantial dividend yield of 12.33%, with its most recent ex-dividend date on October 2, 2024. This high yield is particularly noteworthy given that one of the InvestingPro Tips highlights AVK's 22-year streak of maintaining dividend payments, showcasing the fund's commitment to shareholder returns.
The fund's market capitalization stands at $395.06 million, placing it in the small-cap category. Despite recent market volatility, AVK has demonstrated resilience with a positive year-to-date price total return of 10.57% and an impressive one-year price total return of 33.35%. These figures suggest that Black's investment comes at a time when the fund has been outperforming broader market indices over the past year.
However, investors should be aware that AVK's valuation metrics present a mixed picture. An InvestingPro Tip indicates that the fund suffers from weak gross profit margins, which could impact its overall financial health. Additionally, the fund's negative P/E ratio of -10.19 may raise questions about its current earnings situation.
For a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide deeper insights into AVK's investment potential. These additional tips could be particularly valuable for investors looking to understand the full scope of the fund's financial position and future prospects.
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