SUNS

Sunrise Realty Trust ($SUNS) Officer Continues Massive Share Purchases Amid Market Turmoil as Stock Recovers 24% from Recent Low

04/28/2025 21:22

Sunrise Realty Trust ($SUNS) is showing signs of recovery following the recent market plunge triggered by US-China trade tensions, with consistent insider buying by company executives and officers drawing significant investor attention. $SUNS, a small-cap company (approximately $120 million market cap) operating in the real estate investment sector, has experienced considerable market volatility this year. The stock was particularly impacted by market turmoil following President Trump's announcement of Chinese tariffs in early April. Trading at $10.57 on April 4, the stock plummeted to $8.37 by April 8 and reached a low of $8.21 on April 11—representing a steep 22% decline. Notably, despite this market uncertainty, company insiders, especially officer Leonard Tannenbaum, have maintained substantial and consistent stock purchases. Tannenbaum executed a single transaction of 1,000,000 shares (approximately $12 million) on January 29 at around $12 per share. He has continued buying steadily through March and April, even during the market downturn. Particularly significant is Tannenbaum's persistence in purchasing shares even after the recent stock collapse. He acquired an additional 7,869 shares on April 24, 5,000 shares on April 25, and 5,122 shares on April 28, investing roughly $180,000 more as the stock appeared to be bottoming out. This behavior suggests insiders view the current price levels as an attractive buying opportunity. President Robyn Tannenbaum also purchased a total of 15,568 shares in two transactions last August, while directors James C. Fagan and Alexander C. Frank joined the buying trend with purchases of 4,019 and 4,400 shares respectively. This pattern of insider buying became more pronounced following the company's capital raising activities earlier this year. Sunrise Realty Trust completed an offering of 5.75 million shares at $12 per share in late January, raising $69 million. While the stock temporarily declined during the announcement and pricing of the offering, Tannenbaum's subsequent million-share purchase emphasized insiders' confidence in the company. On April 22, the company announced its expected distributable earnings for the March quarter (Q1 2025) at $0.30-$0.32 per share. At current price levels, this suggests an annualized dividend yield of approximately 12-13%. US real estate market experts note that despite concerns about the interest rate environment and potential economic slowdown, opportunities still exist in certain real estate sectors. They suggest that smaller real estate investment trusts may have advantages in adapting more flexibly to market changes. As of April 25, $SUNS was trading at $10.22, representing a rebound of about 24% from its recent low. This recovery appears to be driven by a combination of sustained insider buying, broader market recovery, and the company's stable earnings outlook. Investors should note that while substantial purchases by key insiders like Leonard Tannenbaum may signal positive prospects for the company's performance and stock price, macroeconomic factors such as US-China trade relations could introduce short-term volatility. Particular attention should be paid to market conditions after July, when President Trump's 90-day tariff pause expires.

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