Insider Buying: AFC Gamma (NASDAQ:AFCG) Director Buys $18,402.56 in Stock

AFC Gamma Inc. (NASDAQ:AFCG) Director Leonard Tannenbaum acquired 5,228 shares of AFC Gamma stock in a transaction that occurred on Friday, September 25th. The shares were purchased at an average price of $3.52 per share, for a total transaction of $18,402.56. Following the completion of the purchase, the director directly owned 7,014,217 shares of the company’s stock, valued at $24,690,043.84. The trade was a 0.07% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

AFC Gamma Stock Down 0.6%

AFCG stock opened at $3.60 on Thursday. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.34 and a quick ratio of 1.34. AFC Gamma Inc. has a 1-year low of $2.06 and a 1-year high of $4.01. The firm has a fifty day moving average price of $3.25 and a two-hundred day moving average price of $3.11. The firm has a market cap of $81.61 million, a price-to-earnings ratio of 18.95 and a beta of 0.95.

AFC Gamma (NASDAQ:AFCG) last posted its quarterly earnings results on Thursday, August 13th. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.19 by $0.04. AFC Gamma had a net margin of 15.64% and a return on equity of 2.85%. The company had revenue of $6.77 million for the quarter, compared to the consensus estimate of $8.59 million. Research analysts predict that AFC Gamma Inc. will post 0.72 EPS for the current year.

AFC Gamma Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be issued a $0.05 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $0.20 dividend on an annualized basis and a yield of 5.6%. AFC Gamma’s dividend payout ratio (DPR) is currently 105.26%.

Analysts Set New Price Targets

AFCG has been the topic of a number of research reports. Wall Street Zen cut AFC Gamma from a “buy” rating to a “hold” rating in a research report on Saturday, August 15th. Weiss Ratings upgraded AFC Gamma from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, August 20th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, AFC Gamma has a consensus rating of “Reduce”.

Key Stories Impacting AFC Gamma

Here are the key news stories impacting AFC Gamma this week:

• Positive Sentiment: Director Leonard Tannenbaum purchased 44,643 shares on September 30 for approximately $162,054, following purchases of 40,081 shares on September 29 and 10,673 shares on September 28. Including two additional reported purchases, his recent buying totals at least 120,625 shares, increasing his direct ownership to more than 7.1 million shares. The transactions may bolster investor confidence because they indicate continued insider conviction. SEC insider purchase filing
• Positive Sentiment: AFC Gamma’s latest quarterly EPS of $0.23 exceeded the $0.19 analyst consensus by $0.04. The stock also offers a recently declared quarterly dividend of $0.05, or $0.20 annualized, representing an indicated yield of approximately 5.6% at the reported share price. AFC Gamma insider buying and dividend report
• Neutral Sentiment: AFCG has recently traded above both its 50-day and 200-day moving averages, suggesting improving technical momentum, although the stock remains well below its 52-week high. Its quick and current ratios are both 1.34, while debt-to-equity is 0.69.
• Negative Sentiment: Quarterly revenue of $6.77 million fell short of the $8.59 million consensus estimate, despite the EPS beat. The company’s approximately 105% dividend payout ratio also raises questions about the sustainability of the distribution if earnings weaken.
• Negative Sentiment: Analyst sentiment remains cautious: the reported consensus rating is “Reduce,” with one Hold and one Sell rating. One research service recently downgraded AFC Gamma from Buy to Hold, limiting the potential upside from the insider buying. AFC Gamma stock information

AFC Gamma Company Profile

AFC Gamma, Inc (NASDAQ: AFCG) is a commercial real estate finance company that provided institutional capital to businesses operating in state-regulated cannabis markets. The company primarily focused on lending to licensed cannabis operators and related businesses, an area historically underserved by traditional banks because cannabis remains illegal under U.S. federal law.

Its financing activities included secured loans backed by commercial real estate and other borrower assets. AFC Gamma offered capital for purposes such as facility acquisition, construction, expansion, refinancing and working capital.