Horizon Kinetics Holding Corp (NYSE:HKHC) CEO and CIO, Murray Stahl, has recently purchased additional shares of the company’s common stock, according to a new SEC filing. Stahl acquired 8 shares at a price of $27.90 each, totaling an investment of $223.
The transaction, dated September 4, 2024, adds to Stahl’s already significant holdings in the company. Following this purchase, Stahl holds 248,592 shares directly. However, the majority of these shares are not currently available for trading. In addition to his direct holdings, he has indirect ownership through entities such as Horizon Kinetics Asset Management LLC and FRMO Inc., over which he exercises discretion.
Investors may find it noteworthy that the shares Stahl has acquired come after a merger between Horizon Kinetics LLC and Scott’s Liquid Gold-Inc. He now owns approximately 21% of Horizon Kinetics Holding Corp through various ownership interests, though he disclaims beneficial ownership over many of these shares.
The recent acquisition by Stahl is a modest addition to his extensive portfolio of Horizon Kinetics shares. It is always significant when a CEO decides to increase their stake in the company they manage, as it may reflect their confidence in the company’s future prospects.
InvestingPro Insights
Horizon Kinetics Holding Corp’s (NYSE:HKHC) latest financial data provides a mixed picture of the company’s valuation and financial health. With a market capitalization of $521.77 million, the company is navigating the market with a notable cash position, as one of the InvestingPro Tips highlights that HKHC holds more cash than debt on its balance sheet. This is a positive sign for investors looking for companies with solid liquidity to weather potential market fluctuations.
Another aspect that investors might consider is the company’s earnings multiple. HKHC is trading at a low earnings multiple, which could suggest that the stock is undervalued based on its earnings power. This is further substantiated by the company’s significant gross profit margin of 50.81% over the last twelve months as of Q2 2024, indicating efficient operations and a strong market position.
However, investors should also note the high valuation multiples in terms of EBIT, EBITDA, and revenue, as HKHC is trading at high multiples across these metrics. Specifically, the company’s EBITDA stands at $7.27 million for the same period, which could signify a premium valuation. These factors, combined with the high price volatility mentioned in another InvestingPro Tip, suggest that potential investors should be prepared for swings in stock price.
For those considering an investment in Horizon Kinetics Holding Corp, additional InvestingPro Tips are available, offering further insights into the company’s financial standing and market performance. Currently, there are 9 additional tips listed on InvestingPro that could help investors make a more informed decision.
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