NYC

American Strategic Investment Co ($NYC) Major Shareholder Buys Shares Almost Daily for Nine Months While Selling Key Property for $63.5 Million

04/24/2025 01:28

The major shareholder of American Strategic Investment Co ($NYC), Nicholas Schorsch, has been sending strong insider confidence signals through persistent stock purchases over recent months. Looking at the price chart, $NYC has maintained an overall upward trend despite significant volatility over the past six months. $NYC's stock price plummeted to $7.97 in mid-July 2024 before gradually recovering, reaching $12.00 by February 14, 2025. Since then, it has fluctuated between $10.00 and $12.50, trading at $11.33 as of April 23, 2025. This represents approximately a 42% increase from its July 2024 low. Analyzing insider trading records reveals particularly noteworthy patterns from major shareholder Schorsch. After making a substantial purchase of 125,000 shares at $11.00 per share for a total of $1,375,000 on July 16, 2024, he has consistently bought small quantities of stock almost daily. His purchasing record from July 18, 2024, to April 17, 2025, shows consistent daily acquisitions of approximately 800-1,700 shares, a pattern that has continued almost every day for about nine months. Other insiders include Director Nicholas Radesca, who purchased 2,500 shares at $9.04 on June 24, 2024, while Director Edward M. Weil Jr. sold a total of 2,778 shares between September 16-18, 2024, at prices ranging from $9.00 to $9.18. Particularly significant is that Schorsch's buying pattern has remained consistent regardless of short-term price fluctuations. Whether the stock price rose or fell, he steadily continued purchasing, demonstrating his strong conviction in the company's long-term value. $NYC 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. On the same day, Bellevue Capital Partners LLC announced an increase in its previously announced tender offer price to $11.00. These strategic moves are interpreted as efforts to improve corporate liquidity and enhance shareholder value. With a market capitalization of approximately $30 million, small-cap $NYC projected quarterly revenues of $16.062 million (a 1.8% increase) and $15.712 million (a 1.9% decrease) in its anticipated earnings reports for August and November 2024, respectively. While small-caps typically exhibit high volatility, the major shareholder's consistent buying behavior suggests insiders maintain a positive outlook on the company's fundamentals. The New York real estate market has shown recovery from late 2024 into early 2025, providing a favorable environment for real estate investment companies like $NYC. In particular, the sale of 9 Times Square can be viewed as a strategy to monetize the value of a core asset and seek reinvestment opportunities. Investors should recognize that persistent insider buying, even by major shareholders, doesn't always translate to stock price increases. However, Schorsch's long-term and consistent purchasing pattern appears based on conviction in long-term value rather than short-term speculation, which may serve as a positive signal for potential investors. Furthermore, it's worth noting that $NYC's stock price is currently trading at $11.33 as of April 2025, above the $11.00 level at which Schorsch made his large purchase in July. The fact that the insider's average purchase price is below the current market price indicates that their investment has been successful thus far. Of course, small-cap investments always carry inherent risks of liquidity challenges and high volatility. However, considering the strong buying signals from insiders alongside the company's strategic decisions, $NYC appears to be a stock worth examining for investors interested in the real estate sector.

You can receive notifications when news is published.