NYC

Major Shareholder of American Strategic Investment Co.($NYC) Shows Conviction With 9-Month Buying Spree Amid Times Square Property Sale

04/08/2025 01:37

American Strategic Investment Co.($NYC) has witnessed significant insider buying over the past nine months, with major shareholder Nicholas Schorsch consistently acquiring shares in what appears to be a strong vote of confidence. The persistent buying pattern, particularly intensifying in early 2025, coincides with a notable uptrend in the company's share price, potentially signaling long-term value creation. American Strategic Investment Co. is a small-cap investment company focused on commercial real estate assets in New York City. With a market capitalization of approximately $28 million, the company owns prime real estate properties in Manhattan. In June 2024, the company announced plans to sell its 9 Times Square property for $63.5 million, likely as part of a strategy to enhance liquidity and improve its financial structure. Insider trading data reveals that Schorsch purchased 125,000 shares for $1,375,000 in a single transaction on July 16, 2024, at $11 per share—a price higher than current trading levels. He continued to buy consistently from July 2024 through April 2025, accumulating hundreds to thousands of shares almost weekly. His buying activity notably accelerated from January 2025 onward, even as share prices climbed above $10. Other noteworthy insider transactions include Director Nicholas Radesca's purchase of 2,500 shares at $9.04 on June 24, 2024, while Director Edward M. Weil Jr. sold a total of 2,778 shares at approximately $9 per share in mid-September 2024. However, Weil's selling was relatively minor compared to Schorsch's persistent accumulation. $NYC's stock price formed a bottom around $8 in mid-July 2024, then traded between $8-9 with some volatility before establishing a clear uptrend beginning in January 2025. The stock reached as high as $12 by mid-February 2025, aligning with Schorsch's intensified buying pattern. Despite the positive insider sentiment, the company's financial situation remains challenging. Earnings forecasts from August and November 2024 projected quarterly revenues of approximately $16 million with continued losses per share. The aggressive insider buying despite these financial metrics suggests strong internal belief in the company's potential recovery and underlying asset value. It's also worth noting that Bellevue Capital Partners LLC increased its previously announced tender offer price to $11 per share in June 2024, representing a premium to current trading prices and reflecting positive external valuation of the company. Real estate market experts suggest that New York's commercial property market has been gradually recovering from the COVID-19 downturn. With tourism rebounding, commercial properties around Times Square are expected to see appreciation, potentially benefiting American Strategic Investment Co.'s asset portfolio. Factors to watch going forward include the successful completion of the Times Square property sale and subsequent debt reduction and liquidity improvement. Investors should also monitor the continuation of Schorsch's buying pattern and upcoming quarterly financial results, which will be crucial in determining the stock's direction. While the consistent insider buying signals confidence, investors should remain aware that small-cap stocks typically exhibit higher volatility and limited liquidity. Additionally, fluctuations in the commercial real estate market and changes in interest rate environments could significantly impact the company's asset values and operating costs.

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