AFC Gamma (NASDAQ:AFCG) Shares Down 2.8% - Should You Sell?

Key Points

• AFC Gamma shares fell 2.8% on Monday, trading as low as $2.70 before ending at $2.73, with volume running slightly above average.
• Analyst sentiment remains cautious: the stock carries an average "Reduce" rating and a consensus price target of $4.50, though recent moves included a Zacks upgrade to hold and a Wall Street Zen upgrade to strong-buy.
• The company continues to pay a quarterly dividend of $0.05 per share, which annualizes to a 7.3% yield, and a director recently bought 90,600 shares, signaling insider confidence.

AFC Gamma Inc. (NASDAQ:AFCG - Get Free Report) was down 2.8% on Monday . The stock traded as low as $2.70 and last traded at $2.73. Approximately 99,838 shares changed hands during trading, an increase of 7% from the average daily volume of 93,594 shares. The stock had previously closed at $2.81.

Analyst Upgrades and Downgrades

AFCG has been the subject of a number of research analyst reports. Zacks Research upgraded shares of AFC Gamma from a "strong sell" rating to a "hold" rating in a research note on Monday, April 20th. Weiss Ratings restated a "sell (d)" rating on shares of AFC Gamma in a research report on Friday. Finally, Wall Street Zen upgraded AFC Gamma from a "buy" rating to a "strong-buy" rating in a research report on Saturday, June 27th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $4.50.

AFC Gamma Trading Down 2.8%

The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.68. The stock has a market cap of $64.24 million, a P/E ratio of -4.27 and a beta of 0.90. The business's fifty day simple moving average is $3.26 and its 200 day simple moving average is $2.83.

AFC Gamma Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 7.3%. The ex-dividend date was Tuesday, June 30th. AFC Gamma's dividend payout ratio is presently -31.25%.

Insider Activity at AFC Gamma

In related news, Director Leonard M. Tannenbaum purchased 90,600 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was acquired at an average price of $2.84 per share, with a total value of $257,304.00. Following the completion of the acquisition, the director directly owned 6,516,775 shares in the company, valued at approximately $18,507,641. This trade represents a 1.41% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 30.70% of the stock is owned by company insiders.

About AFC Gamma

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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