OMCC

Old Market Capital Corp ($OMCC): 26 Consecutive Insider Buys Signal Undervaluation Amid Cash-Rich Balance Sheet

12/18/2025 22:03

Old Market Capital Corp ($OMCC) is drawing market attention with an unprecedented wave of insider buying from its executives and board members. This Omaha-based small-cap financial services company has recorded 26 insider transactions since June 2024, with every single trade being a purchase—a remarkable show of management confidence. $OMCC operates primarily in auto lending and consumer finance, while recently expanding into broadband services. The company rebranded from Nicholas Financial in September 2024, transitioning to a holding company structure and acquiring stakes in Amplex Electric, a broadband provider serving Northwest and Northcentral Ohio, as part of its diversification strategy. The most striking aspect is the aggressive buying by key executives. Director Adam Peterson made the largest splash on December 13, 2024, purchasing 73,000 shares at $6.00 per share for $438,000. CEO Jeffrey C Royal bought 31,500 shares ($189,000) on the same day, while CFO Charles Krebs has been consistently accumulating smaller positions almost monthly since July 2025. Peterson's purchases are particularly notable as they involve complex ownership structures through Magnolia Capital Fund, suggesting a long-term strategic vision beyond simple investment. What makes this insider buying even more significant is the company's cash position. $OMCC holds $18.94 million in cash—more than half of its $36.39 million market capitalization. With a debt-to-equity ratio of just 11.71%, the company maintains exceptional financial safety. Add to this a $7 million share repurchase program authorization, and management's commitment to shareholder returns becomes clear. When cash represents half the market cap and executives are still buying more shares, it's a powerful undervaluation signal. However, stock performance remains challenging. Shares have declined from $6.74 in June 2024 to current levels around $5.10, with a sharp drop to $4.71 in May 2025. This reflects the company's ongoing losses (net loss of $2.93 million, EPS of -$0.44) and uncertainties surrounding its restructuring efforts. From an industry perspective, regional financial consolidation is accelerating. Major deals like Fifth Third Bancorp's $10.9 billion Comerica acquisition are setting the pace, with the Trump administration's deregulatory stance further encouraging M&A activity. In this environment, cash-rich, low-debt companies like $OMCC become attractive acquisition targets. For investors, $OMCC presents a clear risk-reward profile. Positive factors include persistent insider buying, excessive cash relative to market cap, low leverage, and M&A appeal. Negative factors include continued losses, declining stock price, and execution risks around the restructuring. The key question is whether management's buying confidence translates into actual value creation. If the broadband expansion and share buybacks succeed, current prices may represent significant undervaluation. However, if restructuring stalls, cash burn could accelerate without meaningful returns. Investors should monitor insider buying patterns while tracking quarterly results for turnaround progress. The revenue contribution from broadband operations and profitability improvements in traditional finance will be critical variables determining $OMCC's investment thesis.