Executive Chairman of Advanced Flower Capital Leonard Tannenbaum Buys 2.4% More Shares
Advanced Flower Capital Inc. (NASDAQ:AFCG) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Leonard Tannenbaum, recently bought a whopping US$537k worth of stock, at a price of US$3.28. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 2.4%.
Advanced Flower Capital Insider Transactions Over The Last Year
Notably, that recent purchase by Leonard Tannenbaum is the biggest insider purchase of Advanced Flower Capital shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$3.49. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Advanced Flower Capital insiders decided to buy shares at close to current prices.
Advanced Flower Capital insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$3.06. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Advanced Flower Capital
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Advanced Flower Capital
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Advanced Flower Capital insiders own about US$35m worth of shares (which is 43% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Advanced Flower Capital Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Advanced Flower Capital. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Advanced Flower Capital (including 2 which can't be ignored).
Of course Advanced Flower Capital may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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