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Neville Daniel, the Chief Executive Officer of Advanced Flower Capital Inc. (NASDAQ:AFCG), has recently acquired 5,000 shares of the company’s common stock. This purchase, dated March 26, 2025, was executed at a price of $6.20 per share, totaling $31,000. The acquisition comes as the stock trades near its 52-week low of $6.08, with InvestingPro data showing the stock is currently in oversold territory. Following this transaction, Daniel’s total holdings in the company have increased to 182,261 shares. This acquisition reflects a continued confidence in the company’s future prospects by its top executive, particularly notable given the company’s attractive 14.7% dividend yield and strong liquidity position with current assets exceeding short-term obligations by 3.6x. According to InvestingPro analysis, the stock appears slightly undervalued at current levels, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other US equities.
In other recent news, Advanced Flower Capital reported disappointing fourth-quarter 2024 earnings, with earnings per share (EPS) at $0.29, falling short of Wall Street’s forecast of $0.3683. Revenue also did not meet expectations, coming in at $7.64 million compared to the projected $11.59 million. The company’s financial performance has been affected by a significant portion of its loans being in default, with three loans totaling $144 million in principal, accounting for 36.3% of AFCG’s investment balance. Analyst firms have expressed concerns over these defaults, with Jefferies downgrading the stock from Buy to Hold, citing credit uncertainty and a 30% reduction in dividend to $0.23. Citizens JMP maintained a Market Perform rating, noting that the market has likely already accounted for these developments. As the company navigates these challenges, it has set a first-quarter 2025 dividend at $0.23 per share and continues to focus on strategic capital deployment with a robust pipeline of potential deals. The company’s future outlook is closely tied to its ability to recover defaulted funds and stabilize its loan portfolio amidst a challenging credit environment.
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