In a recent move that signals confidence in the company, Jason W. Reese, Chairman and CEO of Great Elm Group, Inc. (NASDAQ:GEG), has purchased additional shares of the company's common stock. The transactions, which took place on March 14 and 15, amounted to a total investment of over $22,000.
According to the filings, Reese acquired 3,254 shares at a weighted average price of $1.98 per share and 7,843 shares at a weighted average price of $2.00 per share. The purchases were made in multiple transactions with prices ranging from $1.90 to $2.00 for the March 14 acquisition and $1.95 to $2.00 for the March 15 acquisition.
The recent acquisitions have increased Reese's indirect holdings in Great Elm Group, Inc. to a significant number of shares. The shares are held by Long Ball (NYSE:BALL) Partners LLC, Imperial Capital Asset Management, LLC, and Imperial Capital Group Holdings II, LLC, entities with which Reese is associated in varying capacities. As the portfolio manager to Long Ball, and as Chairman and CEO of Imperial Capital Asset Management, which manages Long Ball, Reese has voting and dispositive power over the shares. Additionally, he is one of the owners of Imperial Capital Group Holdings, which manages Imperial Capital Group Holdings II.
The filings also note that Reese and the associated entities disclaim beneficial ownership of the reported securities except to the extent of their pecuniary interest. This disclaimer is a standard declaration for individuals and entities that hold shares indirectly.
Investors often look to insider buying as a positive sign that company executives believe in the firm's future prospects. Reese's role as Chairman and CEO of Great Elm Group, Inc., combined with these recent purchases, may be viewed as a reaffirmation of his commitment to the company's success.
The transactions were disclosed in accordance with SEC regulations, and the details of the purchases, including the range of prices for the shares acquired, are available upon request from the issuer, any security holder of the issuer, or the SEC staff.
InvestingPro Insights
In the wake of Jason W. Reese's recent share purchases, a closer look at Great Elm Group, Inc. (NASDAQ:GEG) through the lens of InvestingPro reveals several key metrics and insights. The company boasts a perfect Piotroski Score of 9, which suggests that it is financially healthy and may be undervalued by the market. This could provide additional confidence to investors who regard Reese's insider buying as a bullish signal.
Moreover, Great Elm Group, Inc. holds more cash than debt on its balance sheet, indicating a strong financial position that could support future growth or provide a cushion during economic downturns. This aligns with Reese's increased stake in the company, possibly reflecting his belief in its fiscal prudence and stability.
From a performance perspective, Great Elm Group, Inc. has experienced a significant return over the last week, with a 1 Week Price Total Return of 11.58%, and a strong return over the last three months, with a 3 Month Price Total Return of 17.13%. These figures may suggest that the market is responding favorably to the company's recent activities and prospects.
For investors seeking a deeper dive into Great Elm Group, Inc., there are additional InvestingPro Tips available that could further inform investment decisions. For instance, while the company does not pay dividends, this could be a strategic choice that allows for reinvestment into the company's growth initiatives. Interested readers can find more tips at https://www.investing.com/pro/GEG, and by using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more insights.
It is worth noting that while Great Elm Group, Inc. has shown strong recent returns, the company has not been profitable over the last twelve months. However, with a Market Cap of 60.4M USD and a notable Revenue Growth of 76.82% in the last twelve months as of Q2 2024, the company's future trajectory could be promising. Investors may want to keep an eye on Great Elm Group, Inc.'s next earnings date on May 3, 2024, for further indications of the company's financial performance and strategic direction.
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