NYC

American Strategic Investment Co($NYC) Major Shareholder Signals Confidence With 8-Month Buying Streak Despite Rising Share Price

03/26/2025 03:18

Key insiders at small-cap American Strategic Investment Co ($NYC) have demonstrated a notable buying pattern over the past eight months. Particularly, major shareholder Nicholas S. Schorsch has maintained consistent purchasing activity from July 2024 through March 2025, drawing significant investor attention. Over the past nine months, $NYC's stock price has shown volatility, rising from around $9.20 in June 2024 to a peak of $12.00 in mid-February 2025, before settling near the $10.00 level currently. The stock exhibited particularly strong momentum from January through mid-February 2025, during which Schorsch continued his purchasing activity unabated. A standout transaction occurred on July 16, 2024, when Schorsch acquired 125,000 shares at $11.00 per share, totaling $1.375 million in a single purchase. This large acquisition represented a premium to the market price at that time, signaling strong conviction in the company's value. Following this major purchase, Schorsch has consistently made smaller daily acquisitions, steadily building his position. In mid-September 2024, director Edward M. Weil Jr. sold a total of 2,778 shares at approximately $9.00 per share, but this relatively small divestiture appears to be related to personal liquidity needs or portfolio rebalancing rather than a negative outlook on the company. Notably, Schorsch's buying continued even after this selling activity. On June 26, 2024, $NYC announced it had entered into a Letter of Intent (LOI) to sell its Times Square property for $63.5 million. On the same day, Bellevue Capital Partners LLC announced an increase in its previously announced tender offer price to $11.00 per share. This price represented a significant premium to the then-market price and aligns precisely with Schorsch's major purchase price in July. Regarding the company's financial situation, for the quarterly results expected to be announced on August 9, 2024, analysts projected revenue of $16.06 million (a 1.8% year-over-year increase) with a loss of 17 cents per share. For the results expected on November 12, 2024, projections indicated revenue of $15.71 million (a 1.9% year-over-year decrease) with a loss of 41 cents per share. These figures suggest that despite short-term profitability challenges, insiders maintain confidence in the company's long-term value proposition. Particularly noteworthy is that Schorsch's buying pattern continued uninterrupted during the significant share price appreciation from January through February 2025. His daily purchases even as the stock price exceeded $10.00 suggest he considers the company still undervalued even at these elevated levels. A detailed examination of insider transaction data shows that Schorsch's purchases were made both through his personal account and through Bellevue Capital Partners LLC (BCP), which he solely manages. While the disclosures distinguish between purchases made through BCP and his personal account, they effectively represent an expansion of Schorsch's overall stake in the company. While insider buying generally sends positive signals to investors, potential investors should consider that as a small-cap stock, $NYC may exhibit higher volatility and limited liquidity. Additionally, the projected quarterly losses throughout 2024 indicate the company is still in the process of improving profitability. Key factors for $NYC investors to monitor going forward include the completion of the property sale, additional portfolio adjustment strategies, and management's efforts to improve profitability. The progress of Bellevue Capital Partners' $11.00 tender offer proposal also remains a significant variable that could impact the stock price. Overall, the pattern of insider transactions at $NYC demonstrates that management and major shareholders maintain a positive outlook on the company's long-term value. The major shareholder's consistent and persistent buying activity, in particular, can be interpreted as a strong vote of confidence in the company's future prospects.

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