In a recent transaction, Frank H. Kenan II, a director of Boston Omaha Corp (NASDAQ:BOC), has purchased a substantial number of shares in the company. The transaction, which took place on May 22, involved Kenan acquiring 109,528 shares at a weighted average price of $14.315 per share, amounting to a total investment of approximately $1.57 million.
This purchase represents a significant addition to Kenan's holdings in Boston Omaha, a company operating in the real estate sector. According to the details provided in the filing, the shares were bought in multiple transactions with prices ranging from $13.50 to $14.88533569. The exact number of shares acquired at each price point within this range is available upon request from the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
The shares acquired by Kenan are indirectly owned through KD Capital, L.P., where Kenan serves as the manager and owns 100% of KD Capital Management, LLC, the general partner of KD Capital, L.P. As such, he may be deemed to have indirect beneficial ownership of the purchased shares.
In addition to the recent acquisition, Kenan also has indirect beneficial ownership of shares directly owned by a trust where he serves as both trustee and beneficiary. The total number of shares owned following this transaction is 167,804, which includes the holdings of the trust and KD Capital, L.P.
The filing, made on May 23, underscores the ongoing changes in the ownership stakes of Boston Omaha's insiders. Investors often monitor such transactions closely as they may provide insights into the company's performance and the confidence level of its executives and directors in the firm's prospects.
InvestingPro Insights
Boston Omaha Corp's (NASDAQ:BOC) recent insider transaction, where director Frank H. Kenan II increased his stake in the company, may signal a vote of confidence in the firm's future. To further understand the financial context of this move, let's delve into some key metrics and insights from InvestingPro.
InvestingPro Data indicates that Boston Omaha Corp has a market capitalization of $460.56 million. Despite a challenging profitability outlook, with analysts not expecting the company to be profitable this year, the company's liquid assets surpass short-term obligations, suggesting a solid liquidity position. Moreover, the company operates with a moderate level of debt, which could be a balancing factor in their financial strategy.
The P/E Ratio (Adjusted) for the last twelve months as of Q1 2024 stands at -72.98, reflecting market skepticism about immediate earnings potential. However, the Revenue Growth for the same period was 12.8%, indicating some positive business momentum. An InvestingPro Tip worth noting is that Boston Omaha is trading at a high EBITDA valuation multiple, which suggests that the market may have high expectations for the company's future earnings before interest, taxes, depreciation, and amortization.
For readers interested in a deeper dive into Boston Omaha's financial health and future prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/BOC. For example, the company does not pay a dividend to shareholders, which is a relevant consideration for income-focused investors. In total, there are 6 InvestingPro Tips that can offer further insights into Boston Omaha Corp's financials and market performance. To explore these tips and enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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