Nancy E. Stuebe, a trustee of Advent Convertible & Income Fund (NYSE:AVK), reported a purchase of 1,576 shares of common stock on October 17, 2024. The shares were acquired at a price of $11.28 each, totaling $17,777. This transaction increases her total holdings to 6,353.261 shares. The purchase was made pursuant to the exercise of a rights offering.
In other recent news, Advent Convertible & Income Fund announced the launch of a rights offering for its common shares. This offering allows existing shareholders to purchase additional common shares, with agreements in place with Advent Capital Management, LLC and UBS Securities LLC to manage the offering. Each shareholder will receive one right for every share they own, with every three rights enabling the purchase of one new common share. Eligible shareholders can also acquire additional shares that may be left unsubscribed, subject to certain conditions.
In other developments, Derek Medina has resigned from his trustee role at Advent Convertible & Income Fund. Medina's resignation, not stemming from disagreements with the fund's operations, policies, or practices, has led to a reduction in the board size from eight to seven members. The fund's management and the remaining trustees are expected to continue overseeing the fund's activities and strategies as per the established governance policies. These recent developments are in line with the regulatory framework of the Securities Exchange Act of 1934.
InvestingPro Insights
Nancy E. Stuebe's recent acquisition of Advent Convertible & Income Fund (NYSE:AVK) shares aligns with several key insights from InvestingPro. The fund's current dividend yield stands at an impressive 12.32%, underscoring one of the InvestingPro Tips that AVK "pays a significant dividend to shareholders." This high yield may have been a factor in Stuebe's decision to increase her stake.
Moreover, AVK has maintained dividend payments for 22 consecutive years, demonstrating a commitment to shareholder returns that could appeal to long-term investors like Stuebe. The fund's current market capitalization is $394.37 million, placing it in the small-cap category.
Interestingly, AVK's RSI (Relative Strength Index) suggests the stock is in oversold territory, according to another InvestingPro Tip. This could indicate that Stuebe sees potential value in the current share price, which closed at $11.42 prior to her purchase.
While the fund faces challenges, including weak gross profit margins, its year-to-date price total return of 10.66% and one-year return of 35.86% suggest positive momentum. These metrics, combined with the fund's dividend history, may have influenced Stuebe's decision to increase her position through the rights offering.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on AVK, with a total of 11 tips available for subscribers.
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