Frank J. Hanna III, a significant shareholder in Atlanticus Holdings Corp (NASDAQ:ATLC), has engaged in notable trading activity, according to the latest SEC filings. Hanna, through a family trust, sold a small number of shares and made a substantial purchase of the company's stock on April 9th.
The transaction involved the sale of 263 shares at a price of $28.21 each, totaling approximately $7,419. Following this sale, the same trust went on to acquire a much larger stake, purchasing 263,432 shares at the same price per share, amounting to a substantial investment of roughly $7.43 million.
The nature of these transactions indicates a rebalancing of holdings between the entities controlled by Hanna. According to the footnotes in the SEC filing, an LLC in which Hanna has a minimal pecuniary interest sold shares to the family trust, which counts Hanna and certain family members as beneficiaries.
Investors often keep a close eye on insider trading patterns for insights into executive confidence and company health. Hanna's latest moves, particularly the sizable purchase, could be interpreted as a strong affirmative signal regarding Atlanticus Holdings' future prospects.
Atlanticus Holdings Corp, based in Atlanta, Georgia, operates within the personal credit institutions sector. The company, formerly known as CompuCredit Holdings Corp, has a history of providing financial services and products to a diverse consumer base.
InvestingPro Insights
In light of the recent insider trading activity by Frank J. Hanna III, it's worth noting that Atlanticus Holdings Corp (NASDAQ:ATLC) presents several interesting financial metrics and analyst insights. According to InvestingPro data, the company has a market capitalization of approximately $401.14 million and is trading at a low earnings multiple with a P/E ratio of 5.17, which is consistent with the last twelve months as of Q4 2023. This could suggest that the stock is undervalued relative to its earnings.
Despite the company's revenue showing a decline of 8.23% over the last twelve months as of Q4 2023, Atlanticus Holdings Corp has maintained a strong gross profit margin of 71.59% in the same period. Moreover, with an operating income margin of 36.12%, the company demonstrates substantial profitability in its operations.
InvestingPro Tips highlight that Atlanticus Holdings Corp's stock price movements have been quite volatile, with the price having fallen significantly over the last three months, as indicated by a 3-month price total return of -18.86%. Nevertheless, the company's liquid assets exceed its short-term obligations, and analysts predict it will be profitable this year, which can be reassuring for investors considering the stock's recent performance.
For investors intrigued by these insights, there are additional InvestingPro Tips available for Atlanticus Holdings Corp that could further inform investment decisions. To explore these tips and gain a deeper understanding of the company's financial health, visit https://www.investing.com/pro/ATLC. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 11 more InvestingPro Tips listed for Atlanticus Holdings Corp, providing a comprehensive analysis for prospective and current investors.
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