Insider Transaction Report: Allied Gaming & Entertainment Inc.

Transaction Facts

Overview of Recent Insider Transaction

Allied Gaming & Entertainment Inc. (AGAE), a company in the Entertainment industry within the Communication Services sector, has reported a notable insider transaction. On January 19, 2024, Knighted Pastures LLC, a significant shareholder since December 8, 2020, has executed a purchase of 153,869 shares of common stock at a price of $1.10 per share, resulting in a total transaction value of $169,255.90. This transaction has increased their total holdings to 8,460,243 shares.

Insider's Historical Trading Activity

Over the past year, Knighted Pastures LLC has engaged in multiple transactions, indicating an active interest in adjusting their stake in AGAE. Notably, they purchased 28,876 shares at $0.98 each the day before the latest transaction. Their trading activity over the last 365 days includes the acquisition of shares at prices ranging from $0.98 to $1.36, demonstrating a continued commitment to invest in AGAE at various market valuations.

Market Data and Company Financials

AGAE's market performance has shown fluctuations, with a ten-day price change of -0.9% and a fifty-day price change of 27.91%. The company's two-hundred-day price change is -7.56%, while the fifty-two-week price change has decreased by -29.03%. The stock's recent closing price is slightly below the ten-day high of $1.17 and well above the fifty-day low of $0.76. Financially, AGAE has a market capitalization of $31,224,228 and a negative enterprise value of -$37,290,352. Despite having a total cash reserve of $75,692,608 and a total debt of $7,178,051, the company's free cash flow is negative at -$7,631,968. AGAE's revenue per share stands at $0.19, and the gross margins are at 44.903%, with a negative profit margin of 82.394%.

Significance of the Transaction

The transaction by Knighted Pastures LLC is significant as it represents a considerable investment in AGAE, reinforcing the entity's confidence in the company's future prospects. The consistent pattern of purchases suggests a bullish outlook from the insider, despite the company's negative free cash flow and profit margins. The timing of the buy, coinciding with a recent low in the company's fifty-day stock price, may indicate a strategic move to capitalize on what the insider perceives as an undervalued share price. The absence of other insider transactions on the same day and a relatively low volume of transactions over the past seven days may indicate that this purchase is a strong individual signal rather than part of a wider insider consensus.

Conclusion

The recent purchase by Knighted Pastures LLC underscores a significant endorsement of AGAE's potential. While the company faces financial challenges, the insider's actions may suggest that there are positive developments on the horizon. Investors and analysts will be watching closely to see if this insider transaction precedes a turnaround in AGAE's market performance and financial health.