Frank Kavanaugh, Chairman, CEO, and President of Medalist Diversified REIT, Inc. (NASDAQ:MDRR), recently acquired a significant amount of the company's stock, according to a filing with the Securities and Exchange Commission. On November 15, Kavanaugh purchased 20,917 shares of common stock at a weighted average price of $12.285 per share, amounting to a total transaction value of $256,965. The shares were bought in multiple transactions at prices ranging from $12.27 to $12.30. Following this acquisition, Kavanaugh now holds 228,500 shares directly.
In other recent news, Medalist Diversified REIT, Inc. has reported significant developments in its operations and management. The company's CEO, Francis P. Kavanaugh, has acquired 160,000 units of partnership interest from Medalist Diversified Holdings, L.P. via a private placement sale, which is subject to approval from the majority of the company's stockholders for redemption into common stock.
Furthermore, the company has announced key decisions from its annual stockholders meeting, including the approval of a reverse stock split of its outstanding common stock at a ratio determined by the Board. This proposal received an overwhelming majority of votes in favor, indicating strong support from shareholders.
Changes to the company's Board of Directors have also been implemented, with A. Lee Finley appointed as a Class II director and the resignation of directors Timothy O’Brien and Charles S. Pearson (LON:PSON), Jr. This resulted in a resizing of the Board to five directors and Francis Kavanaugh assuming the role of Chair of the Board.
David Lunin was elected as a Class I director for a three-year term and Cherry Bekaert (EBR:BEKB) LLP was ratified as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024. The frequency of future advisory votes on executive compensation was also approved to occur annually. These are the latest developments for Medalist Diversified REIT, Inc.
InvestingPro Insights
Frank Kavanaugh's recent purchase of Medalist Diversified REIT, Inc. (NASDAQ:MDRR) shares aligns with several interesting metrics and insights from InvestingPro. The company's market capitalization stands at $16.57 million, reflecting its position as a niche player in the real estate industry. This is further supported by an InvestingPro Tip indicating that MDRR is indeed a "niche player in the industry."
Despite the CEO's confidence demonstrated by his substantial stock purchase, InvestingPro data reveals that MDRR's revenue for the last twelve months as of Q3 2023 was $9.92 million, with a revenue growth of -3.87% over the same period. This decline in revenue is consistent with another InvestingPro Tip suggesting that "analysts do not anticipate the company will be profitable this year."
On a positive note, MDRR's gross profit margin for the last twelve months as of Q3 2023 stands at an impressive 77.19%, indicating efficient cost management. Additionally, an InvestingPro Tip highlights that "liquid assets exceed short term obligations," which could be a factor in Kavanaugh's decision to increase his stake in the company.
It's worth noting that MDRR's stock price has shown some resilience, with a 1-year price total return of 20.01% as of the latest data. However, investors should be aware that according to another InvestingPro Tip, the "price has performed poorly over the last decade."
For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for MDRR, providing a deeper understanding of the company's financial health and market position.
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