AFC Gamma Inc. (NASDAQ:AFCG) Sees Large Drop in Short Interest

Key Points

• Short interest fell 29.6% in April to 1,421,905 shares, equal to 8.1% of the float and a days-to-cover ratio of 9.7.
• The company paid a quarterly dividend of $0.05 per share (annualized $0.20), implying a 6.7% yield.
• Director Leonard M. Tannenbaum bought 44,914 shares at $2.59 on March 24; insiders purchased 519,008 shares last quarter and now own 25.10% of the company.

AFC Gamma Inc. (NASDAQ:AFCG - Get Free Report) saw a significant decrease in short interest in the month of April. As of April 15th, there was short interest totaling 1,421,905 shares, a decrease of 29.6% from the March 31st total of 2,019,249 shares. Based on an average daily trading volume, of 146,655 shares, the days-to-cover ratio is presently 9.7 days. Currently, 8.1% of the company's shares are short sold.

AFC Gamma Price Performance

AFC Gamma stock opened at $2.99 on Tuesday. The stock has a market capitalization of $70.35 million, a price-to-earnings ratio of -3.15 and a beta of 0.84. AFC Gamma has a 52-week low of $2.06 and a 52-week high of $5.87. The stock's 50 day moving average price is $2.61 and its two-hundred day moving average price is $2.78. The company has a debt-to-equity ratio of 0.12, a quick ratio of 3.45 and a current ratio of 3.45.

AFC Gamma (NASDAQ:AFCG - Get Free Report) last posted its quarterly earnings results on Wednesday, March 4th. The company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.06 by ($0.18). The business had revenue of $9.07 million for the quarter, compared to the consensus estimate of $5.36 million. AFC Gamma had a positive return on equity of 0.99% and a negative net margin of 70.17%. On average, equities analysts predict that AFC Gamma will post 0.49 earnings per share for the current year.

AFC Gamma Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were given a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date of this dividend was Tuesday, March 31st. AFC Gamma's dividend payout ratio is presently -21.05%.

Analyst Upgrades and Downgrades

Several analysts recently commented on AFCG shares. Zacks Research upgraded AFC Gamma from a "strong sell" rating to a "hold" rating in a report on Monday, April 20th. Weiss Ratings reiterated a "sell (d)" rating on shares of AFC Gamma in a report on Monday, April 20th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, AFC Gamma has a consensus rating of "Reduce" and a consensus target price of $4.50.

Insider Buying and Selling

In related news, Director Leonard M. Tannenbaum bought 44,914 shares of AFC Gamma stock in a transaction that occurred on Tuesday, March 24th. The shares were acquired at an average cost of $2.59 per share, for a total transaction of $116,327.26. Following the completion of the acquisition, the director directly owned 6,373,106 shares of the company's stock, valued at approximately $16,506,344.54. The trade was a 0.71% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders purchased 519,008 shares of company stock valued at $1,331,588 in the last quarter. Corporate insiders own 25.10% of the company's stock.

AFC Gamma Company Profile

AFC Gamma, Inc is a specialty finance real estate investment trust that focuses on providing structured financing solutions to companies operating and developing digital infrastructure and life science real estate assets. As a REIT, AFC Gamma seeks to generate attractive risk-adjusted returns through a diversified portfolio of loans, preferred equity and other financing structures that are secured by tangible property collateral or contractual revenue streams.

The company's primary business activities include originating, acquiring and managing secured loans and equity investments that support wireless and broadband network deployment, data center expansion, and life sciences facility development.

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