Ronald Nyberg, a trustee and officer of Advent Convertible & Income Fund (NYSE:AVK), recently acquired 3,671 shares of the company's common stock. The purchase, made on October 17, was priced at $11.28 per share, amounting to a total transaction value of $41,408. Following this acquisition, Nyberg's direct holdings in the company increased to 14,657 shares. This transaction was executed under a rights offering, as noted in the filing.
In other recent news, Advent Convertible & Income Fund has launched a rights offering for its common shares according to a recent SEC filing. This offering, managed by Advent Capital Management, LLC and UBS Securities LLC, permits existing shareholders to acquire additional common shares of the fund. Furthermore, the fund has entered into agreements with Equiniti Trust Company, LLC and EQ Fund Solutions, LLC to facilitate the offering.
In a separate development, Derek Medina, a trustee of the fund, has resigned due to other professional commitments. The fund's Board of Trustees has now reduced its members from eight to seven following Medina's departure. This change is not indicative of further modifications to the fund's management or operational structure.
These recent developments are part of the fund's ongoing operations, which continue to comply with the regulatory framework of the Securities Exchange Act of 1934. The fund's management and the remaining trustees are expected to persist in overseeing the fund's activities and strategies according to established governance policies.
InvestingPro Insights
Ronald Nyberg's recent acquisition of Advent Convertible & Income Fund (NYSE:AVK) shares aligns with several key metrics and trends highlighted by InvestingPro. The fund's current dividend yield stands at an impressive 12.32%, underscoring one of the InvestingPro Tips that AVK "pays a significant dividend to shareholders." This high yield could be a contributing factor to Nyberg's decision to increase his stake in the company.
Moreover, AVK has maintained dividend payments for 22 consecutive years, demonstrating a commitment to shareholder returns that may be attractive to long-term investors like Nyberg. The fund's recent performance shows a strong 1-year price total return of 35.86%, suggesting positive momentum that could have influenced the trustee's purchase decision.
It's worth noting that the stock's RSI suggests it may be in oversold territory, potentially indicating a buying opportunity that Nyberg has capitalized on. However, investors should be aware that AVK suffers from weak gross profit margins, according to another InvestingPro Tip.
For those interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further context to Nyberg's investment decision. The InvestingPro product includes 5 more tips for AVK, which could offer valuable insights for potential investors.
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