In recent trading activity, NewLake Capital Partners, Inc. (OTC:NLCP) Director David L. Weinstein sold a significant portion of his holdings in the company, according to the latest regulatory filings. The transactions, which took place over two consecutive days, involved the sale of a total of 23,641 shares of common stock.
On August 12, Weinstein sold 11,125 shares at an average price of $20.41, while on the following day, an additional 12,516 shares were sold at an average price of $20.43. The combined sales amounted to approximately $482,763. These transactions have adjusted Weinstein's direct ownership in the company to 93,823 shares following the sales.
Investors following NewLake Capital's insider activity will note that the sales were made within a price range. On the first day, shares were sold for as high as $20.50 and as low as $20.40, while on the second day, the shares were sold between $20.45 and $20.40. The reported prices represent the weighted average, rounded to the nearest hundredth.
NewLake Capital Partners, Inc., a real estate investment trust (REIT) operating within the cannabis industry, has not yet provided any official statement regarding these transactions. However, the filings indicate that Weinstein is prepared to offer full information regarding the number of shares sold at each price point within the range upon request.
These sales come at a time when insider trading activities are closely monitored by investors seeking insights into company performance and executive confidence. The details of these transactions are publicly available through the Securities and Exchange Commission's filings.
In other recent news, NewLake Capital Partners reported a robust growth for Q2 2024, with total revenue escalating by 9.5% to $12.5 million and net income for common shareholders hitting $6.8 million. The real estate investment trust also raised its quarterly cash dividend to $0.43 per share. During the earnings call, CEO Anthony Coniglio shared insights into the company's strategy and outlook, including potential impacts of cannabis rescheduling by the DEA and market dynamics in states such as Ohio and Florida.
The company's gross real estate assets stood at $428 million, with a strong balance sheet presenting only $8 million in debt and high liquidity at $103 million. The firm is focusing on uplisting to a major exchange and increasing investor awareness. NewLake Capital Partners is also engaging in discussions for sale-leaseback transactions as an alternative to traditional financing.
Recent developments include growth optimism in new markets such as Connecticut, Missouri, Maryland, and New York. However, some challenges were noted such as tenant Revolutionary Clinics in Massachusetts paying only 50% of its June rent. Despite this, the launch of adult-use cannabis sales in Ohio is expected to positively impact the company's financial performance.
InvestingPro Insights
As investors digest the insider trading activity at NewLake Capital Partners, Inc. (OTC:NLCP), it's important to consider the broader financial context in which these transactions occur. According to InvestingPro data, NewLake Capital Partners has a market capitalization of approximately $427.84 million, with a P/E ratio of 16, indicating a moderate valuation level relative to earnings. Notably, the adjusted P/E ratio for the last twelve months as of Q2 2024 is slightly lower at 15.81, suggesting a slight improvement in earnings relative to share price.
The company's revenue growth has been steady, with a 5.23% increase over the last twelve months as of Q2 2024, and an even more impressive quarterly revenue growth of 9.48% in Q2 2024. This growth is reflected in the company's strong gross profit margin of 98.88%, underscoring its ability to maintain profitability.
Moreover, NewLake Capital Partners has been rewarding shareholders, as evidenced by its significant dividend yield of 8.4% and a 10.26% growth in dividends over the last twelve months as of Q2 2024. This aligns with one of the InvestingPro Tips highlighting that the company has raised its dividend for three consecutive years.
For those seeking additional insights, there are more InvestingPro Tips available for NewLake Capital Partners, including observations on the company's cash position, share buybacks, and debt management. For example, the company holds more cash than debt on its balance sheet and has been aggressively buying back shares, which could be a sign of management's confidence in the company's value. A total of 11 additional InvestingPro Tips can be found on the platform, offering a comprehensive analysis for investors (https://www.investing.com/pro/NLCP).
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