Medalist Diversified REIT, Inc. (NASDAQ:MDRR) Chief Financial Officer Charles Brent Winn Jr. has acquired additional shares of the company, according to a recent filing with the Securities and Exchange Commission. On November 26, Winn purchased 300 shares of the real estate investment trust at a price of $12.15 per share, totaling $3,645. This acquisition increases his direct ownership to 38,074 shares. The transaction reflects Winn's continued investment in the company, which operates within the real estate investment trust sector.
In other recent news, Medalist Diversified REIT, Inc. has seen significant activity from its Chief Executive Officer, Francis P. Kavanaugh, and its board of directors. Kavanaugh recently purchased 160,000 units of partnership interest in a private placement sale, a transaction exempt from public offering requirements. This move, priced at $12.50 per unit, is subject to approval from the majority of the company's stockholders for redemption into common stock.
Additional developments include the company's decision to conduct a reverse stock split of its outstanding common stock, with the ratio determined at the board's discretion to range from 1-for-10 to 1-for-100. This proposal was met with strong support, receiving 842,566 votes in favor.
Furthermore, changes to the company's Board of Directors have been reported, with A. Lee Finley being appointed as a Class II director and David Lunin elected as a Class I director for a three-year term. Concurrently, directors Timothy O’Brien and Charles S. Pearson (LON:PSON), Jr. have resigned, leading to a resizing of the Board to five directors and Kavanaugh assuming the role of Chair of the Board. Cherry Bekaert (EBR:BEKB) LLP was also ratified as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024. These developments highlight recent activity within Medalist Diversified REIT, Inc.
InvestingPro Insights
The recent insider purchase by Medalist Diversified REIT's CFO Charles Brent Winn Jr. aligns with some interesting financial metrics and insights from InvestingPro. As of the latest data, MDRR has a market capitalization of $13.8 million, indicating its position as a small-cap player in the REIT sector.
InvestingPro Tips highlight that MDRR has a perfect Piotroski Score of 9, suggesting strong financial health and potential for value creation. This could be a factor in Winn's decision to increase his stake in the company. Additionally, MDRR's liquid assets exceed short-term obligations, which is a positive sign for the company's financial stability.
However, investors should note that the company's revenue growth has been negative, with a -3.87% decline in the last twelve months as of Q3 2024. Despite this, MDRR maintains a healthy gross profit margin of 77.19%, indicating efficient management of its real estate portfolio.
The company's dividend yield stands at 1.95%, which may be attractive to income-focused investors, although it's worth noting that dividend growth has been negative at -62.5% over the last twelve months.
For those considering MDRR as an investment opportunity, InvestingPro offers 9 additional tips that could provide further insights into the company's prospects. These tips, available with an InvestingPro subscription, could help investors make more informed decisions about Medalist Diversified REIT's potential in the current market environment.
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