RENN Fund CEO Murray Stahl Purchases $2.6k in Company Stock

RENN Fund, Inc. (NYSEAMERICAN: RCG) has announced recent stock acquisitions by its President and CEO, Murray Stahl. A recent SEC filing revealed that Stahl purchased a total of $2,568 worth of common stock at a price of $1.97 per share on September 18, 2024.

The transaction included several blocks of RENN Fund shares acquired through both direct and indirect ownership. Specifically, Stahl directly purchased 23,514 shares, excluding additional shares held indirectly through various entities. For these indirect holdings, Stahl has disclaimed beneficial ownership except for his financial interest.

These transactions demonstrate Stahl’s ongoing investment in the company, with the shares purchased disseminated across various accounts, including those under his spouse’s name and entities such as FROMEX EQUITY CORP, FRMO CORP, Horizon Common Inc., Horizon Kinetics Hard Assets LLC, and HORIZON KINETICS ASSET MANAGEMENT LLC. It’s important to note that the reported totals do not account for the indirect shares from which Stahl disclaims full beneficial ownership.

Insider buying often prompts interest from investors, as it may indicate executives’ confidence in the company’s future. Therefore, the detailed share acquisitions by RENN Fund’s CEO could be perceived positively by the investment community.

In other significant news, Horizon Kinetics Holding Corp, formerly known as Scott’s Liquid Gold-Inc., has undergone substantial changes through a series of corporate actions. The company merged with Horizon Kinetics, LLC and its subsidiary HKNY One, LLC, increasing its equity base with the issuance of 17,984,253 new shares. This action has diluted existing shareholders’ stake to approximately 3.5%.

Additionally, the company executed a 1-for-20 reverse stock split, reducing the outstanding shares. The company also transitioned its corporate registration from Colorado to Delaware and established a new set of bylaws. Following these changes, the company rebranded as Horizon Kinetics Holding Corp and moved its principal executive offices to New York.

These developments led to a shift in control, with substantial ownership now held by members of Horizon Kinetics. Directors Murray Stahl, Steven Bregman, and Peter Doyle, along with Horizon Common Inc. and John Meditz, have gained significant stakes in the company’s common stock. A major reshuffle in the board of directors saw six new members appointed, with Stahl taking on the role of Chairman. Management changes also occurred, with David Arndt stepping down as President and Chief Financial Officer, while new officers were appointed, including Stahl as the Chief Executive Officer and Chief Investment Officer, Bregman as President, and Doyle as Vice President.

In light of CEO Murray Stahl’s recent share purchases, investors may be interested in RENN Fund’s financial standing and market performance. Recent data indicates that RENN Fund has achieved a revenue growth of 21.53% over the past year as of Q2 2024, with a quarterly growth of 17.49% in Q2 2024. This trend is reflected in its gross profit margin, reported at an impressive 100%. These factors could be contributing to Stahl’s confidence in the company’s potential.

Furthermore, the stock has shown a strong return over the last three months, boasting a total price return of 19.28%. This solid performance, coupled with a one-year total return of 11.61%, suggests a favorable outlook for investors, aligning with the CEO’s recent buying activity.

While the company has been profitable over the past year, concerns have arisen about its short-term obligations exceeding liquid assets, which may present risks for investors. Additionally, the valuation indicates a low free cash flow yield, implying that the stock might be overvalued relative to the cash being generated.