In a recent transaction, Murray Stahl, the President and CEO of RENN Fund, Inc. (NYSE:RCG), expanded his stake in the company. On March 21, 2024, Stahl acquired additional shares of RENN Fund at a uniform price of $1.63 each, signifying continued confidence in the firm's prospects.
The series of purchases, detailed in the latest SEC filings, show Stahl buying a total of 57 shares of RENN Fund's common stock, amounting to an investment of $92. This transaction has increased his direct holdings to 4,964 shares. Additionally, the report includes indirect acquisitions through entities where Stahl has a pecuniary interest, though he disclaims beneficial ownership except to the extent of his direct financial interest, if any.
The indirect purchases are distributed among several entities. Stahl's spouse acquired 1 share, increasing their holdings to 385 shares. Fromex Equity Corp, where Stahl has an indirect interest, added 6 shares, bringing its total to 60,743. FRMO Corp, another entity with Stahl's indirect interest, purchased 24 shares, now holding a total of 242,864 shares. Horizon Common Inc., also indirectly associated with Stahl, mirrored this transaction with an additional 24 shares, culminating in a total of 246,946 shares.
These transactions are a part of the regular disclosure of stock activities by company executives and are publicly reported for investor awareness. Stahl's recent acquisition of RENN Fund shares demonstrates a tangible commitment to the company's future and may be of interest to current and potential investors monitoring insider activity for investment insights.
The SEC filing also notes that these figures do not include the 4,964 shares held directly by Mr. Stahl, and the total indirect holdings across all mentioned entities. The attorney-in-fact for Murray Stahl, Jay Kesslen, signed the document on March 22, 2024, affirming the accuracy and completeness of the reported information.
InvestingPro Insights
As Murray Stahl increases his stake in RENN Fund, Inc. (NYSE:RCG), investors may be evaluating the company's financial health and potential for growth. Recent data from InvestingPro provides a snapshot of RENN Fund's financial performance and market position that could be of interest to investors following insider transactions.
According to the latest available metrics, RENN Fund reported a revenue of $0.29 million for the last twelve months as of Q4 2023, which represents a significant growth of 27.92% for the same period. The company has also shown a quarterly revenue growth of 26.26% in Q4 2023. Despite these positive growth figures, it's important to note that RENN Fund has a gross profit margin of 100%, indicating that it was able to convert all of its revenue into gross profit.
However, the company's financial challenges are highlighted by two InvestingPro Tips. RENN Fund's short-term obligations exceed its liquid assets, which could pose liquidity risks. Additionally, the company's valuation implies a poor free cash flow yield, which may concern investors looking for signs of financial sustainability. Moreover, RENN Fund has not been profitable over the last twelve months, with a basic and diluted EPS (Continuing Operations) of -$0.13, which could be a red flag for potential investors.
For those considering RENN Fund as an investment opportunity, it may be worthwhile to explore the full array of InvestingPro Tips available. With additional insights and analysis, investors can make more informed decisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to the numerous other tips listed on InvestingPro.
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