Medalist Diversified REIT, Inc. (NASDAQ:MDRR) recently saw insider buying activity from the company's top executive, Frank Kavanaugh. Kavanaugh purchased a total of $150,698 worth of the company's common stock in two separate trades, signaling confidence in the firm's future prospects.
On August 15, Kavanaugh bought 6,800 shares at an average price of $12.08 per share. He followed up with an additional purchase of 5,569 shares on August 30 at an average price of $12.31 per share. These transactions bring Kavanaugh's total direct ownership in Medalist Diversified REIT to 205,000 shares.
Aside from the insider buying activity, the company also announced a stock split strategy and significant changes to its Board of Directors. The stock split involves a reverse split at a 1-for-10 ratio followed by a forward split at a 5-for-1 ratio, while A. Lee Finley was appointed as a new director.
InvestingPro Insights
Despite the insider buying activity and recent developments at Medalist Diversified REIT, Inc., the company faces challenges with its notable debt burden and negative P/E ratio. Analysts do not anticipate profitability within the current fiscal year, but the company's liquid assets exceed short-term obligations, providing some financial flexibility.
While the company's revenue has seen a decline, it boasts a substantial gross profit margin of 76.75% and a market capitalization of $16.9 million. Additionally, InvestingPro Data highlights a dividend yield of 1.6% and available tips for a deeper analysis of the company's financial position.
Overall, investors should consider the implications of insider buying, stock splits, and financial metrics when evaluating Medalist Diversified REIT, Inc.'s potential for growth and performance in the market.
