On June 22, 2023, Chairman and CEO Kevin Rendino purchased 1,552 shares of 180 Degree Capital Corp (TURN, Financial), a business development company that specializes in investing in and providing value-added assistance to publicly traded microcap companies. This recent purchase adds to Rendino's existing holdings in the company, bringing his total shares to 155,451 over the past year.
Kevin Rendino is a seasoned investment professional with over 20 years of experience in the financial industry. He joined 180 Degree Capital Corp in 2016 and has been serving as the Chairman and CEO since 2017. Prior to joining the company, Rendino was a partner at BlackRock, where he managed the Basic Value Fund and the Large Cap Series Funds.
180 Degree Capital Corp focuses on investing in companies with significant growth potential and aims to create shareholder value through a combination of strategic investments, financial restructuring, and operational improvements. The company's investment portfolio includes companies from various sectors, such as technology, healthcare, and consumer products.
Insider Buying and Stock Price Relationship
Insider buying can be an important signal for investors, as it may indicate that the company's management believes the stock is undervalued and has the potential for future growth. Over the past year, there have been 48 insider buys for 180 Degree Capital Corp, while only one insider sell was recorded during the same period. This trend suggests that insiders are confident in the company's prospects and are accumulating shares.
On the day of Kevin Rendino's recent purchase, shares of 180 Degree Capital Corp were trading at $4.53, giving the stock a market cap of $46.734 million. The stock's price has been relatively stable over the past year, with a 52-week range of $3.50 to $5.00. The recent insider buying activity could be a positive sign for investors, as it may indicate that the stock is undervalued and has the potential for future growth.
Valuation and GF Value
With a current price of $4.53 and a GuruFocus Value of $35.76, 180 Degree Capital Corp has a price-to-GF-Value ratio of 0.13, indicating that the stock is significantly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
Considering the recent insider buying activity, the stock's undervalued status based on its GF Value, and the company's focus on investing in high-growth potential companies, 180 Degree Capital Corp could be an attractive investment opportunity for investors seeking exposure to the microcap space. However, as with any investment, it is essential to conduct thorough research and consider the company's financial health, growth prospects, and potential risks before making an investment decision.
