In recent transactions disclosed by Fundamental Global Inc. (NASDAQ:FGF), CEO and Chairman Kyle Cerminara, along with affiliated entities, made significant acquisitions of the company's stock. The purchases, which took place from November 19 to November 21, 2024, totaled approximately $351,067. The transactions involved buying common stock and 8.00% cumulative preferred stock, Series A, at prices ranging from $16.98 to $35.86 per share.
The filings show that the acquisitions were made through FG Financial Holdings, LLC, a related entity. Following these transactions, FG Financial Holdings now holds 326,965 shares of common stock and 66,152 shares of preferred stock in Fundamental Global Inc.
The transactions reflect continued confidence in the company by its leadership, with Cerminara holding significant influence over the shares acquired. Fundamental Global Inc., formerly known as FG Financial Group, Inc., is engaged in the fire, marine, and casualty insurance sectors.
InvestingPro Insights
Recent insider buying at Fundamental Global Inc. (NASDAQ:FGF) aligns with several key metrics and trends highlighted by InvestingPro. The company's stock has shown strong performance in the short term, with InvestingPro data revealing a 30.53% return over the last month and a 26.53% return over the last three months. This positive momentum could be a factor in CEO Kyle Cerminara's decision to increase his stake in the company.
InvestingPro Tips indicate that FGF stock generally trades with high price volatility, which may present opportunities for informed investors like company insiders to acquire shares at attractive prices. The recent purchases by Cerminara and affiliated entities occurred at prices ranging from $16.98 to $35.86 per share, while the current price stands at $30.81, suggesting potential value in the acquisitions.
It's worth noting that FGF's price-to-book ratio is 0.58, indicating that the stock may be undervalued relative to its book value. This could be another factor contributing to the insider buying activity. Additionally, InvestingPro calculates a fair value of $41.89 for FGF, further supporting the notion that the stock may have upside potential from current levels.
While the company faces challenges such as weak gross profit margins and a recent quarterly revenue decline of 5.78%, the insider buying could signal management's confidence in future prospects. Investors considering FGF may find additional insights valuable, with InvestingPro offering 6 more tips to guide investment decisions in this volatile insurance sector stock.
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