Murray Stahl, the President and CEO of RENN Fund, Inc. (NYSE:RCG), has recently increased his stake in the company through a series of stock purchases. On May 29, 2024, Stahl acquired additional shares of RENN Fund at a uniform price of $1.61 per share, according to a Form 4 filing with the Securities and Exchange Commission.
The transactions, which were all buys, amounted to a total of $96. Stahl's purchases included 4 shares directly held, 1 share held by his spouse, 6 shares held by FROMEX Equity Corp, 24 shares held by FRMO Corp, and 25 shares by Horizon Common Inc. Following these transactions, Stahl's directly held shares in RENN Fund increased to a total of 5,109 shares.
The reported acquisitions reflect Stahl's continued investment in RENN Fund, showing confidence in the company's prospects. The Form 4 filing also mentioned that for each indirect account, Stahl disclaims beneficial ownership except to the extent of his pecuniary interest, if any. Additionally, the indirect holdings reported do not include the 5,109 shares Stahl holds directly.
Investors often view insider purchases as a positive signal about the company's future performance, as executives are expected to buy stock based on their belief in the company's potential for growth and profitability.
The signature on the SEC filing was provided by Jay Kesslen, attorney-in-fact, on May 30, 2024. As with any insider transactions, the market typically keeps a close eye on such activities, considering them alongside other factors when evaluating investment decisions in the company's stock.
InvestingPro Insights
In light of Murray Stahl's recent stock purchases, investors may be keen to understand the financial health and performance outlook for RENN Fund, Inc. A glance at the real-time metrics from InvestingPro offers a snapshot of the company's recent financial results and market performance.
RENN Fund's revenue for the last twelve months as of Q4 2023 stood at $0.29 million, marking a significant growth of 27.92% year-over-year. This uptick is further supported by a quarterly revenue growth of 26.26% in Q4 2023. Notably, the company's gross profit mirrors its revenue at $0.29 million, translating to a gross profit margin of 100%, which could be indicative of a strong pricing power or a low cost of goods sold.
Despite these encouraging growth figures, RENN Fund's bottom line tells a different story. The basic and diluted earnings per share (EPS) for continuing operations were both negative at -$0.13, signaling that the company was not profitable over the last twelve months. This aligns with one of the InvestingPro Tips pointing out that RENN Fund has not achieved profitability in this period.
Moreover, investors should be aware of the company's financial position as another InvestingPro Tip highlights that RENN Fund's short-term obligations exceed its liquid assets, which could raise concerns about its ability to meet its immediate liabilities.
For those considering an investment in RENN Fund, it's worth noting that the company's stock has experienced a 1-year price total return of -7.75%, and its price is currently at 84.21% of its 52-week high, potentially offering a discount for new investors. Additionally, RENN Fund has maintained a dividend yield of 0.95%, with the last dividend's ex-date being December 15, 2023.
InvestingPro provides a wealth of additional tips to help investors make informed decisions, and by using the coupon code PRONEWS24, readers can enjoy an extra 10% off a yearly or biyearly Pro and Pro+ subscription. There are 17 more InvestingPro Tips available for RENN Fund, which could offer deeper insights into the company's financial health and future prospects.
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