RENN Fund, Inc. (NYSE:RCG) President and CEO Murray Stahl has recently increased his holdings in the company with multiple share purchases on July 15th, as reported in the latest SEC filings. Stahl, who is also a director of the fund, bought a total of 186 shares of common stock at a consistent price of $1.75 per share, amounting to an investment of $325.
The transactions come as a notable addition to Stahl's already substantial holdings in RENN Fund, Inc. Following the purchases, Stahl directly owns 5,494 shares. Additionally, he has indirect ownership through shares held by his spouse and various entities. These entities include FROMEX Equity Corp, FRMO Corp, Horizon Common Inc., and Horizon Kinetics Asset Management LLC. The exact number of shares owned indirectly by Stahl was not disclosed, but the filing noted that the figures reported do not include the 5,494 shares he owns directly.
It is important to mention that for each account where Stahl's ownership is indirect, he disclaims beneficial ownership except to the extent of his pecuniary interest. This means that while he may have a financial interest in these shares, he does not necessarily have direct control over them.
The SEC filing was signed on behalf of Murray Stahl by attorney-in-fact Jay Kesslen on July 16th, the day after the transactions took place. Investors often look to purchases by company insiders like Stahl for indications of their confidence in the firm's prospects, making such transactions noteworthy events in the investment community.
RENN Fund, Inc. is a company incorporated in Texas, with its business address located in Dallas. The fund's previous names include RENN Global Entrepreneurs Fund, Inc. and Renaissance Capital Growth & Income Fund III Inc., indicating its history in supporting entrepreneurial and growth-focused investments.
InvestingPro Insights
As Murray Stahl increases his stake in RENN Fund, Inc. (NYSE:RCG), a closer look at the company's financial health and market performance through InvestingPro data could provide investors with a clearer picture of the underlying fundamentals. RENN Fund has seen a notable revenue growth of 27.92% over the last twelve months as of Q4 2023. This growth is consistent when looking at the quarterly figure, with a 26.26% increase in the same period. Additionally, the Gross Profit Margin stands at an impressive 100%, indicating that the company is able to retain all of its revenue as gross profit.
However, it's essential to consider the InvestingPro Tips that highlight some areas of concern. The tips reveal that RENN Fund's short-term obligations exceed its liquid assets, which could pose liquidity risks. Moreover, the company's valuation implies a poor free cash flow yield, and it has not been profitable over the last twelve months. These factors should be weighed against the revenue growth when assessing the company's overall financial stability and future potential.
Investors looking to delve deeper into RENN Fund's financials and market performance can find additional insights and tips on InvestingPro. For example, there are 5 additional InvestingPro Tips available, which could further inform investment decisions. Interested investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to a wealth of expert analysis and real-time data.
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