John L. Villano, Chairman, CEO, and President of Sachem Capital Corp . (AMEX:NYSE:SACH), recently acquired 124,660 shares of the company's common stock. The shares were purchased at a weighted average price of $1.61 per share, with transaction prices ranging from $1.57 to $1.65. This acquisition, valued at approximately $200,702, increases Villano's direct ownership to 1,796,329 shares. Additionally, Villano holds 6,827 shares indirectly through his wife.
In other recent news, Sachem Capital Corp. announced a change in its independent registered public accounting firm, moving from Hoberman & Lesser CPA's, LLP to Baker Tilly US, LLP. This decision was approved by the Audit Committee of the company's Board of Directors. No disagreements on accounting principles, practices, or financial statement disclosures were noted in the reports by Hoberman for the fiscal years ending December 31, 2022, and December 31, 2023.
In the company's latest earnings call, Sachem Capital reported a decrease in revenue to $14.8 million, down from $17.8 million in the same period last year. This decline is attributed to fewer loan originations due to rising construction costs and high interest rates. Additionally, Sachem posted a net loss of $6.1 million, despite efforts to recover approximately 70% of the unpaid principal balance through the sale of mortgage loans.
In response to these developments, Sachem Capital is negotiating the sale of mortgage loans and has declared a quarterly dividend of $0.05 per share. The company is also diversifying its investments, acquiring a 20% stake in Shem Creek Capital for $2.5 million. These recent actions are part of Sachem Capital's efforts to navigate the current capital markets and restore growth.
InvestingPro Insights
John L. Villano's recent acquisition of Sachem Capital Corp. (AMEX:SACH) shares aligns with several key insights from InvestingPro. The company's stock is currently trading at a low Price / Book multiple of 0.36, suggesting it may be undervalued relative to its assets. This could explain Villano's decision to increase his stake in the company.
InvestingPro Tips indicate that SACH pays a significant dividend to shareholders, with a current dividend yield of 12.05%. This high yield could be attractive to investors seeking income, although it's worth noting that the dividend growth has declined by 61.54% over the last twelve months.
The stock's recent performance has been challenging, with InvestingPro data showing a 27.33% decline in the past month and a 44.5% drop over the last six months. This downward trend is reflected in the InvestingPro Tip that the stock's RSI suggests it is in oversold territory, potentially presenting a buying opportunity for those who believe in the company's long-term prospects.
While the company faces some headwinds, with net income expected to drop this year, analysts predict that Sachem Capital Corp. will be profitable this year. This optimism, combined with the fact that liquid assets exceed short-term obligations, may provide some reassurance to investors like Villano who are increasing their positions.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Sachem Capital Corp., providing a deeper understanding of the company's financial health and market position.
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