CION

Cion Investment Corp($CION) Co-CEOs Execute $20,000 Stock Purchase Amid 20% Price Drop...Strong Value Conviction Signal from Insiders

05/13/2025 18:05

The Co-CEOs of Cion Investment Corp ($CION) have made significant insider purchases amid the company's declining share price. According to SEC Form 4 filings disclosed on May 12, 2025, Co-CEO Mark Gatto acquired 2,070 shares at an average price of $9.66, totaling approximately $20,000, while Co-CEO Michael Reisner purchased 515 shares at an average price of $9.69, amounting to about $4,990 on the same day. Cion Investment Corp is a business development company (BDC) that provides debt and equity capital to middle-market companies in the United States. With a market capitalization of approximately $495 million, it falls into the small-cap category. The stock has declined more than 20% from its March highs, with a particularly steep drop in early April. CION's share price, which had reached $12.13 in early March 2025, began to decline in mid-March before experiencing a sharp collapse in early April. After closing at $9.48 on April 4, the stock plummeted to a 52-week low of $8.68 by April 8. Despite a modest recovery thereafter, it fell again to $9.38 on May 9. Notably, CION's management team and board members have consistently purchased company shares during this downturn. Between March 17 and May 12, 2025, there have been 10 separate insider purchases totaling approximately $95,000. President Gregg Bresner was particularly active, acquiring 2,000 shares on March 18 and another 1,000 shares on March 19, followed by additional 1,000-share purchases on both March 31 and April 1. This sequence of buys demonstrates strong conviction in the face of the declining stock price. Director Robert Breakstone and CCO Stephen Roman also acquired 500 and 455 shares, respectively, in mid-March. The May purchases by both Co-CEOs come at a time when the stock is showing renewed weakness, suggesting that management believes the current price significantly undervalues the company's intrinsic worth. Mark Gatto's approximately $20,000 purchase represents the largest single transaction by an executive over the past year. Historically, CION insiders have exhibited similar cluster buying patterns in August and November 2024. August 2024 saw six insider purchases concentrated within a short period, while November recorded five such transactions. Following these buying clusters, the stock subsequently gained more than 10% within 2-3 months of each pattern. In the broader market context, small-cap stocks have been under pressure recently, with the BDC sector facing volatility due to concerns about interest rate environments and middle-market lending risks. The U.S. market in early May has shown mixed results amid worries about President Trump's tariff policies and inflation, with small-caps experiencing greater pressure. In July 2024, CION announced the amendment and extension of its $675 million senior secured credit facility with improved economic terms, which strengthened the company's liquidity and financial stability. Investment analysts note that such consistent insider buying signals typically reflect management's confidence in the company's performance and long-term outlook. In the BDC sector specifically, insider trading patterns often provide clues about dividend sustainability and asset values. Currently, CION stock has rebounded approximately 10% from its early April lows but remains down about 15% year-to-date. The persistent insider buying suggests that current price levels may represent an attractive entry point, with the simultaneous purchases by both Co-CEOs sending a particularly noteworthy signal.

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