NYC

Major Shareholder of American Strategic Investment Co($NYC) Consistently Buys $600,000+ in Shares Over 10 Months, Signaling Insider Confidence in Small Real Estate Investment Firm

04/03/2025 01:38

American Strategic Investment Co ($NYC) has been experiencing significant volatility in its stock price, while major shareholder Nicholas S. Schorsch continues to demonstrate a consistent pattern of share purchases. His steady buying activity over the past 10 months may indicate insider confidence in the future of this small real estate investment company. The stock price of $NYC has fluctuated between $8 and $12 over the past year. Trading in the low $9 range during mid-2024, it briefly surpassed $10 in mid-July before declining, and has shown an upward trend since February 2025, trading above $11. Notably, the stock reached as high as $12 on February 14, 2025, and has since stabilized around $11. American Strategic Investment Co is a small real estate investment company listed on the New York Stock Exchange (NYSE) with a market capitalization of approximately $30 million. The company primarily invests in commercial properties in Manhattan, New York, and recently announced on June 26, 2024, that it had entered into a letter of intent to sell its 9 Times Square property for $63.5 million. The most notable insider transaction is the large purchase by major shareholder Nicholas S. Schorsch. On July 16, 2024, he acquired 125,000 shares at $11.00 per share, representing an investment of approximately $1.375 million. Following this major purchase, he has continued with smaller but consistent buys almost daily. From July 2024 through April 2025, his total purchases are estimated to exceed 57,000 shares, representing an investment of over $600,000. Examining Schorsch's buying pattern more closely reveals that he initially purchased around 800-900 shares per day, gradually increasing to 1,300-1,700 shares. Additionally, his purchase prices increased from primarily $8-9 in late 2024 to $10-12 in early 2025. This demonstrates a strong commitment to buying even as the share price rose. According to insider trading disclosures, Schorsch is the sole managing member of Bellevue Capital Partners LLC (BCP), and many of his transactions were executed through BCP. Interestingly, on June 26, 2024, BCP announced an increase in its previously announced tender offer price to $11.00 per share, which matches the price of Schorsch's significant July 16 purchase. Other insider transactions are also worth noting. Director Nicholas Radesca purchased 2,500 shares at approximately $9.04 ($22,604) on June 24, 2024. Conversely, Director Edward M. Weil Jr. sold a total of 2,778 shares (approximately $25,031) between September 16-18, 2024. Weil holds a non-controlling equity interest in BCP, suggesting his sales may have been motivated by personal liquidity needs. The financial situation of $NYC remains challenging. Analysts projected continued losses for the quarterly results in August and November 2024. For August, quarterly revenue was expected to increase by 1.8% to $16.062 million with a loss of 17 cents per share. For November, revenue was projected to decline by 1.9% to $15.712 million with a loss of 41 cents per share. Analysts' 12-month price target stands at $8.00, below its current trading price. However, the sale of the 9 Times Square property should improve the company's cash liquidity and reduce debt. Additionally, the persistent buying by the major shareholder suggests insider confidence in the company's long-term value, potentially reflecting an optimistic view that the company can create value through strategic changes despite challenging financial circumstances. In small-cap stocks, such consistent insider buying patterns serve as significant signals. Particularly noteworthy is the major shareholder continuing to purchase shares despite price increases, which may indicate that insiders believe the stock remains undervalued or anticipate positive management changes or asset revaluations. Investors should pay attention to these insider buying signals while also considering the company's fundamental financial situation, which continues to show losses, and the liquidity risks inherent in small-cap stocks. Real estate market volatility and changes in the interest rate environment are also important external factors that will influence $NYC's future performance.

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