NYC

American Strategic Investment ($NYC) Major Shareholder Makes Bullish Bet With Persistent Buying Amid Rising Share Price

03/29/2025 01:38

American Strategic Investment Co ($NYC) has seen its stock climb nearly 20% over the past six months, drawing attention to the steady share purchases by its major shareholder. Since July 2024 through March 2025, Nicholas S. Schorsch's persistent buying activity signals strong confidence in the company's future trajectory. On July 16, 2024, Schorsch made a significant investment of approximately $1.37 million, purchasing 125,000 shares at $11.00 each. This marked the largest insider transaction for $NYC in 2024. What's particularly noteworthy is his continued purchasing pattern, buying hundreds to thousands of shares almost daily thereafter. From December 2024 through March 2025, he maintained regular weekly acquisitions, even as the stock price pushed above $10 in February 2025. Schorsch's purchases have been executed primarily through Bellevue Capital Partners, LLC (BCP), where he serves as the sole managing member. This aligns with BCP's June 2024 announcement that it had increased its tender offer price for $NYC to $11.00 per share. Board member Nicholas Radesca also demonstrated confidence by purchasing 2,500 shares at an average price of $9.04 on June 24, 2024. However, not all insiders share this bullish outlook. Director Edward M. Weil Jr. sold a total of 2,778 shares between September 16-18, 2024. Weil holds a non-controlling equity interest in BCP but disclaims beneficial ownership of securities owned by BCP except for his pecuniary interest. American Strategic Investment Co, a small-cap firm operating in the real estate investment sector, announced in June 2024 that it had entered into a letter of intent to sell its 9 Times Square property for $63.5 million. This move appears to be part of a strategic effort to restructure its asset portfolio and improve liquidity. Financially, the company was projected to post losses in both its August and November 2024 earnings reports. In August, quarterly revenue was expected to reach $16.062 million, a 1.8% year-over-year increase, but with a projected loss of 17 cents per share. By November, revenue was forecast to decline by 1.9% to $15.712 million, with losses widening to 41 cents per share. Despite these financial challenges, the continued share purchases by the major shareholder and some board members reflect insiders' conviction in the company's long-term value proposition. The combination of asset divestiture for cash generation and insider buying may indicate a strategic repositioning of the company. Looking at the stock's performance, $NYC started June 2024 around $9.2 and fluctuated between $8.5 and $9.0 until late 2024. However, it began an upward trajectory in early 2025, soaring to $12.0 by mid-February before settling at approximately $11.45 by late March—representing a roughly 24% increase from early June levels. Intriguingly, Schorsch continued his purchases even during the sharp price increases in February 2025. On February 14, he acquired 1,488 shares at $12.07 per share, the highest price point of his buying pattern. This suggests he views the company's intrinsic value as higher than even the current market price. For investors, $NYC presents distinct insider buying signals and potential value realization through asset sales. However, persistent financial losses and the inherent volatility of small-cap stocks remain risk factors. Additionally, the divergence in insider trading activity—some buying, some selling—hints at internal uncertainty about the company's future direction. In the coming months, investors should monitor improvements in financial performance, news of additional asset sales or acquisitions, and most importantly, whether the major shareholder's buying pattern continues. The case of $NYC, a small real estate investment firm, reinforces how insider trading can serve as a critical indicator in assessing corporate value.

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