Sabas Carrillo, the Chief Executive Officer of Blum Holdings, Inc. (OTC:BLMH), recently expanded his stake in the company through a series of transactions involving the purchase of common stock. According to a recent SEC filing, Carrillo acquired a total of 47,737 shares on the open market over three days, from November 19 to November 21, 2024. The transactions occurred at prices ranging from $0.14 to $0.18 per share, amounting to a total investment of $7,992.
These purchases were made directly by Carrillo, increasing his direct ownership in the company. In addition to his direct holdings, Carrillo also holds shares indirectly through Adnant LLC, where he serves as CEO and managing member. The recent acquisitions reflect Carrillo's continued confidence in Blum Holdings, a company operating in the miscellaneous retail sector.
InvestingPro Insights
The recent insider buying by CEO Sabas Carrillo comes at a time when Blum Holdings (OTC:BLMH) is facing significant financial challenges, according to data from InvestingPro. The company's stock has experienced a substantial decline, with a one-year price total return of -84.64% as of the latest available data. This context makes Carrillo's decision to increase his stake particularly noteworthy.
InvestingPro Tips highlight that BLMH is operating with a significant debt burden and may have trouble making interest payments on its debt. This financial strain is further evidenced by the company's quick cash burn rate. Despite these challenges, the stock has seen a significant return over the last week, with a 18.52% price increase, possibly influenced by the insider buying activity.
It's worth noting that BLMH's revenue growth has been impressive, with a 180.88% increase over the last twelve months as of Q3 2024. However, the company is not profitable over this period, with an adjusted operating income of -$9.33 million.
For investors considering following Carrillo's lead, it's important to note that BLMH stock generally trades with high price volatility. This volatility, combined with the company's financial challenges, suggests a high-risk investment profile.
InvestingPro offers 16 additional tips for BLMH, providing a more comprehensive analysis for those interested in delving deeper into the company's financial situation and market performance.
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