RENN Fund, Inc. (NYSE:RCG) reported that its President and CEO, Murray Stahl, has made a recent purchase of the company's common stock, according to a new filing with the Securities and Exchange Commission. Stahl acquired a total of 1,260 shares at a price of $1.88 each, amounting to an investment of $2,372.
The transaction, dated September 3, 2024, was disclosed in a Form 4 filing with the SEC on September 4. The purchase is part of a series of acquisitions made by Stahl, who holds various positions within the company, including serving as a director. The filing indicates that Stahl now owns 19,020 shares directly, with additional shares held indirectly through family and business-related entities.
The shares were acquired through multiple transactions, with Stahl's spouse acquiring 2 shares, increasing their total to 537 shares. Additionally, shares were purchased through entities such as FROMEX EQUITY CORP, FRMO CORP, HORIZON COMMON INC., Horizon Kinetics Hard Assets LLC, and HORIZON KINETICS ASSET MANAGEMENT LLC. These transactions were made at the same price per share and on the same date as Stahl's direct purchases.
The indirect holdings reported in the filing are subject to disclaimers by Stahl, noting that he disclaims beneficial ownership except to the extent of his pecuniary interest, if any, in these accounts. This indicates a separation between the reporting individual's direct control or economic benefit from the shares held indirectly.
Investors often monitor insider transactions, such as purchases and sales of company stock by executives, as these can provide insights into the leadership's confidence in the company's future performance. Stahl's recent acquisition might be seen as a positive signal by investors, as the CEO increases his stake in RENN Fund.
RENN Fund, headquartered in Dallas, Texas, is known for its previous names, RENN Global Entrepreneurs Fund, Inc., and Renaissance Capital Growth & Income Fund III Inc. The company's stock is traded under the ticker symbol RCG on the New York Stock Exchange.
In other recent news, Horizon Kinetics Holding Corp has undergone significant changes, including a merger, a reverse stock split, and a change of state incorporation. The company expanded its equity base through a merger with Horizon Kinetics, LLC, and its wholly owned subsidiary HKNY One, LLC, issuing nearly 18 million new shares and diluting existing shareholders to a 3.5% holding. Alongside the merger, the company executed a 1-for-20 reverse stock split and reincorporated from Colorado to Delaware, adopting new bylaws and relocating its principal executive offices to New York.
The company, previously known as Scott's Liquid Gold-Inc., has also seen a change in control. Notable stakeholders now include Horizon Kinetics members Directors Murray Stahl, Steven Bregman, Peter Doyle, Horizon Common Inc., and John Meditz. In addition, a major reshuffle of the board of directors has taken place, with six new members, including Stahl, Bregman, and Doyle, being appointed.
These recent developments have also led to management changes. David Arndt stepped down as President and Chief Financial Officer, with new executive officers being appointed, including Stahl as Chief Executive Officer and Chief Investment Officer, Bregman as President, and Doyle as Vice President.
InvestingPro Insights
In light of the recent insider transactions at RENN Fund, Inc. (NYSE:RCG), where President and CEO Murray Stahl increased his holdings in the company, it's beneficial for investors to consider additional financial metrics and InvestingPro Tips. The InvestingPro platform provides deeper insights into the company's financial health and performance. Here are some key data points and tips:
InvestingPro Data shows RENN Fund's revenue growth over the last twelve months as of Q4 2023 was a robust 27.92%. This growth momentum was also reflected in the quarterly revenue growth for Q4 2023, which came in at 26.26%. However, despite this growth, the company's gross profit margin remains at 100%, indicating that all revenue has translated into gross profit.
On the earnings front, the basic and diluted EPS (Earnings Per Share) for continuing operations stood at -0.13 USD over the same period, suggesting that the company has not been profitable over the last twelve months. This aligns with one of the InvestingPro Tips, which points out that RENN Fund has not been profitable over the last twelve months.
Another InvestingPro Tip for RENN Fund is that the company's short-term obligations exceed its liquid assets, which could pose a risk to the company's financial stability in the short term. Additionally, the valuation implies a poor free cash flow yield, indicating that investors might not be getting an optimal return on their investment based on current valuations.
For investors seeking to understand the potential risks and opportunities associated with RENN Fund, InvestingPro offers additional insights. Currently, there are more InvestingPro Tips available on the platform, which could provide valuable guidance for those considering an investment in RENN Fund. These tips are accessible through the dedicated InvestingPro page for RENN Fund at https://www.investing.com/pro/RCG.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.