Murray Stahl, the President and CEO of RENN Fund, Inc. (NYSE:RCG), has recently increased his stake in the company through a series of stock purchases. According to a recent filing, Stahl acquired a total of 1,232 shares of common stock at a price of $2.14 per share, amounting to a total investment of $2,636.
The acquisitions were made on October 22, 2024, and reflect a combination of direct and indirect ownership. The shares were purchased through various entities, including personal accounts and companies with which Stahl is associated, such as Horizon Kinetics Hard Assets LLC and Horizon Kinetics Asset Management LLC.
Following these transactions, Stahl directly owns 32,000 shares, while additional shares are held indirectly through entities and family members. It is noted that Stahl disclaims beneficial ownership for the shares held indirectly, except for his pecuniary interest. The move signals continued confidence in the fund's prospects, with Stahl maintaining significant holdings in the company.
In other recent news, Horizon Kinetics Holding Corp, previously known as Scott's Liquid Gold-Inc., has undergone significant corporate transformations. The company has completed a merger with Horizon Kinetics, LLC, and its wholly owned subsidiary HKNY One, LLC, resulting in the issuance of 17,984,253 new shares, representing a 96.5% stake post-merger. This development has substantially diluted the holdings of existing shareholders to a collective 3.5%.
Simultaneously, Horizon Kinetics executed a 1-for-20 reverse stock split and changed its state of incorporation from Colorado to Delaware. The company also adopted a new set of bylaws, changed its name, and relocated its principal executive offices to New York. These changes have resulted in a shift of control, with significant stakes now held by members of Horizon Kinetics.
The board of directors has undergone a substantial reshuffle, appointing six new members, including directors Murray Stahl, Steven Bregman, and Peter Doyle. Stahl has been named Chairman, and the board is expected to announce further committee appointments soon. Management changes have also occurred, with David Arndt stepping down as President and Chief Financial Officer, and the appointment of new executive officers. These are the recent developments in the company.
InvestingPro Insights
Recent financial data from InvestingPro sheds light on RENN Fund, Inc.'s (NYSE:RCG) performance, providing context to Murray Stahl's recent stock purchases. The company has demonstrated strong revenue growth, with a 21.53% increase in the last twelve months as of Q2 2024, reaching $0.31 million. This growth trend is further supported by a 17.49% quarterly revenue increase in Q2 2024.
RCG's profitability metrics are particularly noteworthy. The company boasts a 100% gross profit margin for the last twelve months, indicating efficient cost management. Additionally, RCG has been profitable over the last twelve months, with a basic and diluted EPS from continuing operations of $0.16.
InvestingPro Tips highlight RCG's recent market performance, noting a "Strong return over the last three months" and a "Large price uptick over the last six months." These tips align with the reported price total returns, showing a 19.44% increase over three months and a substantial 29% gain over six months. This positive momentum may have influenced Stahl's decision to increase his stake in the company.
It's worth noting that InvestingPro offers additional insights, with 5 more tips available for RCG, providing a more comprehensive analysis for investors interested in deeper research.
While these metrics paint a positive picture, investors should also consider the InvestingPro Tip indicating that "Short term obligations exceed liquid assets," suggesting potential liquidity challenges that may require attention.
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