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In a recent move, Magnolia Capital Fund LP, a significant shareholder in Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLRD), has sold a portion of its holdings in the company. The transactions, which took place over two consecutive days, resulted in the sale of a total of 6,500 shares of Wheeler REIT's Series D Cumulative Convertible Preferred Stock, bringing in $127,000 for Magnolia Capital Fund.
The sales were conducted at varying prices, with shares on the first day fetching $19.70 each and those on the following day selling for $19.40 each. Following these transactions, it's reported that Magnolia Capital Fund LP still indirectly owns a substantial number of shares in Wheeler REIT through its general partner and investment manager, The Magnolia Group, LLC, and its managing member, Adam K. Peterson.
The details revealed in the footnotes of the filing indicate that both The Magnolia Group, LLC, and Adam K. Peterson have indirect beneficial ownership of 321,162 shares of the Series D Preferred Stock. However, they have disclaimed beneficial ownership of these securities except to the extent of their pecuniary interest, clarifying that the filing should not be considered an admission of beneficial ownership for any legal purposes.
These recent sales by Magnolia Capital Fund LP represent a notable change in their investment in Wheeler Real Estate Investment Trust, which is known for its portfolio of commercial real estate properties. The trust specializes in acquiring and managing retail centers, and the preferred stock transactions reflect the ongoing adjustments made by large stakeholders in their investment strategies.
InvestingPro Insights
As Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLRD) sees significant transactions by major shareholders such as Magnolia Capital Fund LP, investors are closely monitoring the company's performance metrics and stock behavior. According to InvestingPro data, Wheeler REIT currently has a market capitalization of $2.1 million, which provides a snapshot of the company's size in the financial markets. Despite some challenges, the company has managed to achieve a notable gross profit of $66.95 million in the last twelve months as of Q1 2024, with a gross profit margin standing strong at 65.69%. This indicates that Wheeler REIT has been effective in maintaining profitability at the gross level.
However, the InvestmentPro Tips suggest that caution may be warranted. The stock has been identified as being in oversold territory based on its RSI, indicating that the stock price might be at a level that is lower than its intrinsic value, potentially presenting an opportunity for investors. Additionally, the stock has experienced significant price volatility, with a substantial hit over the last week, underscoring the stock's high volatility in price movements. Investors should note that Wheeler REIT has not been profitable over the last twelve months, which could be a point of concern.
To provide a broader perspective, there are additional InvestingPro Tips available for Wheeler REIT, which can be accessed for more in-depth analysis and investment considerations. For those interested in exploring these further, there are 12 additional tips listed on InvestingPro, offering a more comprehensive understanding of Wheeler REIT's financial health and stock performance.
For investors and stakeholders in Wheeler Real Estate Investment Trust, these insights serve as a valuable tool for making informed decisions, particularly in light of the recent preferred stock transactions by Magnolia Capital Fund LP.
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