RENN Fund, Inc. (NYSE:RCG) President and CEO Murray Stahl has made a series of stock purchases, according to a recent filing with the Securities and Exchange Commission. On May 7, 2024, Stahl acquired additional shares of the company's common stock, all at a price of $1.60 per share. The transactions added to both his direct and indirect holdings, reflecting a continued investment in the firm he leads.
The SEC filing detailed multiple purchases amounting to a total of $94. Stahl directly purchased 4 shares, increasing his direct ownership to 5,049 shares. Additionally, he made indirect purchases: 1 share attributed to his spouse's holdings, 6 shares through FROMEX EQUITY CORP, 24 shares through FRMO CORP, and another 24 shares through HORIZON COMMON INC. These transactions brought the indirect holdings to 417 shares, 60,935 shares, 243,632 shares, and 247,714 shares, respectively. An additional indirect holding of 8 shares through Horizon Kinetics Asset Management LLC was reported, but no transaction was listed for this entry.
Footnotes in the filing clarify that for the indirect accounts, Stahl disclaims beneficial ownership except to the extent of his pecuniary interest, if any. It is also noted that the indirect holdings figures do not include the 5,049 shares held directly by Stahl.
The purchases by Stahl demonstrate his ongoing commitment to the company, as he increases his stake in the fund. Investors often monitor such insider transactions for insights into executives' perspectives on their company's financial health and future prospects. RENN Fund, Inc. specializes in investments and is incorporated in Texas. The company has undergone name changes in the past but continues to operate under the leadership of Stahl.
The filing was signed by attorney-in-fact Jay Kesslen on behalf of Stahl on May 8, 2024.
InvestingPro Insights
As RENN Fund, Inc. (NYSE:RCG) sees increased insider investment from President and CEO Murray Stahl, current and potential investors may be weighing the company's financial health and future outlook. Using insights from InvestingPro, we can glean further understanding of RENN Fund's financial position and performance. Notably, the company reported a revenue of $0.29 million in the last twelve months as of Q4 2023, marking a significant growth of 27.92% over the same period. This growth trajectory is also reflected in the quarterly revenue increase of 26.26% for Q4 2023.
Despite these positive growth figures, RENN Fund's profitability remains a concern. According to InvestingPro Tips, the firm has not been profitable over the last twelve months, which is reflected in a basic and diluted EPS (Continuing Operations) of -$0.13. Additionally, the valuation of the company implies a poor free cash flow yield, and its short-term obligations exceed its liquid assets. These factors suggest that while the revenue is growing, the company's financial efficiency and liquidity could be areas of risk for investors.
For those considering RENN Fund as an investment, it is worth noting that the company has maintained a dividend yield of 0.95%, with the last dividend having an ex-date of December 15, 2023. This could be an attractive point for income-focused investors, despite the stock's year-to-date price total return showing a decrease of -6.73%.
For more detailed analysis and additional InvestingPro Tips, investors can explore the comprehensive insights available on InvestingPro. There are currently more tips listed that could further inform investment decisions. To access these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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