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

AFC Gamma, Inc. (NASDAQ:AFCG) was the recipient of a significant decline in short interest during the month of May. As of May 15th, there was short interest totalling 1,060,000 shares, a decline of 17.2% from the April 30th total of 1,280,000 shares. Based on an average daily trading volume, of 219,900 shares, the days-to-cover ratio is currently 4.8 days. Currently, 6.0% of the company’s stock are sold short.

Insider Activity at AFC Gamma

In other AFC Gamma news, Director Leonard M. Tannenbaum acquired 50,000 shares of the company’s stock in a transaction that occurred on Monday, March 17th. The shares were purchased at an average price of $6.20 per share, for a total transaction of $310,000.00. Following the completion of the purchase, the director now directly owns 3,959,876 shares in the company, valued at $24,551,231.20. The trade was a 1.28% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Daniel Neville bought 5,000 shares of the stock in a transaction dated Wednesday, March 26th. The shares were bought at an average cost of $6.20 per share, with a total value of $31,000.00. Following the completion of the acquisition, the chief executive officer now directly owns 182,261 shares of the company’s stock, valued at approximately $1,130,018.20. The trade was a 2.82% increase in their position. The disclosure for this purchase can be found here. Insiders bought a total of 146,606 shares of company stock valued at $930,691 over the last three months. 26.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in AFC Gamma stock. Martingale Asset Management L P lifted its stake in shares of AFC Gamma, Inc. (NASDAQ:AFCG) by 24.1% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 20,623 shares of the company’s stock after purchasing an additional 4,005 shares during the quarter. Martingale Asset Management L P owned about 0.09% of AFC Gamma worth $172,000 at the end of the most recent reporting period. 26.53% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Separately, Jefferies Financial Group cut AFC Gamma from a “buy” rating to a “hold” rating and cut their target price for the company from $10.00 to $7.00 in a research note on Friday, March 14th. Three equities research analysts have rated the stock with a hold rating, one has assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, AFC Gamma has a consensus rating of “Moderate Buy” and a consensus target price of $9.67.

AFC Gamma Price Performance

NASDAQ AFCG opened at $5.14 on Tuesday. The company has a 50-day moving average price of $5.23 and a two-hundred day moving average price of $7.36. AFC Gamma has a 52 week low of $4.34 and a 52 week high of $12.74. The stock has a market cap of $116.14 million, a price-to-earnings ratio of 12.85 and a beta of 1.19. The company has a current ratio of 3.92, a quick ratio of 3.92 and a debt-to-equity ratio of 0.29.

AFC Gamma Announces Dividend

The firm also recently announced a dividend, which was paid on Tuesday, April 15th. Shareholders of record on Monday, March 31st were paid a dividend of $0.23 per share. The ex-dividend date of this dividend was Monday, March 31st. AFC Gamma’s payout ratio is currently 92.93%.

AFC Gamma Company Profile

AFC Gamma, Inc originates, structures, underwrites, and invests in senior secured loans, and other various commercial real estate loans and debt securities for established companies operating in the cannabis industry. It primarily originates loans structured as senior loans secured by real estate, equipment, and licenses and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties.