Murray Stahl, the President and CEO of RENN Fund, Inc. (NYSE:RCG), has purchased additional shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. Stahl acquired a total of $96 worth of shares at a price of $1.63 each.
The transactions, which took place on May 21, 2024, involved the direct purchase of shares as well as indirect acquisitions through family and related corporate entities. Specifically, Stahl directly bought 4 shares, while 1 share was acquired indirectly by his spouse. Furthermore, 6 shares were bought through FROMEX EQUITY CORP, 24 shares through FRMO CORP, and another 24 shares by HORIZON COMMON INC.
Following these acquisitions, Stahl's direct ownership in RENN Fund, Inc. increased to 5,089 shares. The indirect holdings mentioned in the filing include 427 shares by his spouse, 60,995 shares by FROMEX EQUITY CORP, 243,872 shares by FRMO CORP, and 247,954 shares by HORIZON COMMON INC. Additionally, Horizon Kinetics Asset Management LLC, another related entity, holds 8 shares indirectly, where Stahl disclaims beneficial ownership except to the extent of his pecuniary interest.
The filing was signed on behalf of Stahl by attorney-in-fact Jay Kesslen on May 22, 2024. The disclosed transactions demonstrate a continued investment by Stahl in the company, reflecting his role as both President and CEO of RENN Fund, Inc.
InvestingPro Insights
As RENN Fund, Inc.'s President and CEO Murray Stahl increases his stake in the company, investors may want to consider the financial health and stock performance of RCG. According to the latest data from InvestingPro, RENN Fund, Inc. has experienced notable revenue growth, with a 27.92% increase in the last twelve months as of Q4 2023. This is further supported by a quarterly revenue growth of 26.26% in Q4 2023. Despite these positive growth metrics, there are areas of concern highlighted by InvestingPro Tips that investors should be aware of.
One such InvestingPro Tip points out that RENN Fund, Inc.'s short-term obligations exceed its liquid assets, indicating potential liquidity risks. Additionally, the company's valuation implies a poor free cash flow yield, suggesting that the stock may not be generating sufficient cash relative to its market value. Furthermore, RENN Fund, Inc. has not been profitable over the last twelve months, which is a critical factor for investors to consider when assessing the company's long-term viability.
Investors looking at the stock's recent performance will note that the price is currently at 84.21% of its 52-week high, with a modest 1.25% one-week total return as of the date provided. Despite these returns, the company's year-to-date price total return shows a decline of -5.26%, with a -8.16% return over the past year. The dividend yield stands at 0.94%, potentially offering a small income stream for shareholders.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, which could provide further insights into RENN Fund's financial health and stock performance. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to these valuable tips and metrics.
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