RENN Fund, Inc. (NYSE:RCG) President and CEO Murray Stahl has recently increased his stake in the company. On October 1, 2024, Stahl purchased shares of RENN Fund's common stock, totaling $2,574 at a price of $2.10 each.
The series of transactions on the same day involved different quantities of stock, but all were acquired at the uniform price of $2.10 per share. The CEO's direct purchases added 344 shares to his direct holdings, while indirect acquisitions were made for accounts associated with Stahl's family and entities in which he has an interest. Notably, these transactions do not include the 26,826 shares he already holds directly.
The indirect purchases were distributed across several entities, including 2 shares credited to his spouse's holdings and 180 shares each for FROMEX Equity Corp and FRMO Corp. Additionally, Horizon Common Inc. saw an increase of 230 shares, Horizon Kinetics Hard Assets LLC by 84 shares, and Horizon Kinetics Asset Management LLC by 206 shares.
It's important to note that for each indirect holding, Stahl disclaims beneficial ownership except to the extent of his pecuniary interest. This disclaimer is standard for executives who manage or have an interest in multiple investment vehicles.
The transactions demonstrate a continued commitment by Stahl to RENN Fund, where he serves as both President and CEO. Investors often monitor insider buying as it may indicate the executive's confidence in the company's future prospects.
RENN Fund, Inc. is a company with a history of name changes, having previously been known as RENN Global Entrepreneurs Fund, Inc. and Renaissance Capital Growth & Income Fund III Inc. The company operates out of Dallas, Texas, and is incorporated in the state.
For those interested in the specifics of the transactions, the details can be found in the company's latest Form 4 filing with the SEC.
In other recent news, Horizon Kinetics Holding Corp has undergone significant changes with a merger, reverse stock split, and a change of state incorporation. The company, previously known as Scott's Liquid Gold-Inc., has expanded its equity base by issuing 17,984,253 new shares through a merger with Horizon Kinetics, LLC, and its wholly owned subsidiary HKNY One, LLC. This move diluted existing shareholders to a collective 3.5% holding.
In addition to the merger, Horizon Kinetics executed a 1-for-20 reverse stock split and reincorporated from Colorado to Delaware. The company also relocated its principal executive offices to New York, New York, and adopted a new set of bylaws.
These recent developments have resulted in a change of control, with significant stakes now held by Horizon Kinetics members. Notably, directors Murray Stahl, Steven Bregman, and Peter Doyle, along with Horizon Common Inc. and John Meditz, now own substantial portions of the company's common stock.
The board of directors has been restructured, with six new members appointed, including Stahl, Bregman, and Doyle. Stahl has been named Chairman, and the board is expected to announce committee appointments soon. Management changes have also taken place, with new executive officers appointed, including Stahl as Chief Executive Officer and Chief Investment Officer, Bregman as President, and Doyle as Vice President.
InvestingPro Insights
RENN Fund, Inc. (NYSE:RCG) has shown strong performance in recent months, aligning with CEO Murray Stahl's recent share purchases. According to InvestingPro data, RCG has experienced a robust 22.1% price total return over the last three months and an impressive 28.83% over the past six months. This positive momentum is further supported by an InvestingPro Tip indicating a "Strong return over the last three months."
The company's financial health appears solid, with InvestingPro data showing revenue growth of 21.53% in the last twelve months as of Q2 2024. Additionally, RCG boasts a remarkable 100% gross profit margin for the same period, suggesting efficient cost management.
Another InvestingPro Tip notes that RCG has been "Profitable over the last twelve months," which may have contributed to Stahl's decision to increase his stake. This profitability is reflected in the positive Basic and Diluted EPS of $0.16 for the trailing twelve months.
Investors considering RCG might be interested to know that InvestingPro offers 5 additional tips for this stock, providing a more comprehensive analysis of its investment potential. These insights could prove valuable in understanding the broader context of Stahl's recent insider buying activity.
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