Whatever the state of the economy, personal injury claims and reliable legal representation will always be a busy sector. Mangrove just played its hand, taking a position in Asta Funding. Here’s what’s important.
In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Asta Funding, Inc. (NASDAQ:ASFI) reported that Mangrove Partners Master Fund, Ltd. has picked up 4,005,701 of common stock as of 2017-01-10.
The acquisition brings the aggregate amount owned by Mangrove Partners Master Fund, Ltd. to a total of 4,005,701 representing a 33.7% stake in the company.
For those not familiar with the company, Asta Funding, Inc. is primarily engaged in the businesses of acquiring, managing, servicing and recovering on portfolios of consumer receivables. The Company operates through four segments: Consumer Receivables, Personal Injury Claims, Structured Settlements and GAR Disability Advocates. The Consumer receivables segment is engaged in purchasing, managing for its own account and servicing distressed consumer receivables, including charged off receivables, semi-performing receivables and performing receivables. The Personal injury claims segment includes the operations of its subsidiary, Pegasus Funding, LLC. The Structured settlements segment includes the operations of CBC Settlement Funding, LLC (CBC).
A glance at Asta Funding, Inc.(NASDAQ:ASFI)’s key stats reveals a current market capitalization of 121.14 million based on 11.88 million shares outstanding and a price at last close of $10.15 per share.
Looking at insider activity, there are a few transactions worth noting.
Specifically, on 2016-05-12, Mangrove picked up 9,493 at a purchase price of $10.25. This brings their total holding to 4,005,701 as of the date of the filing.
On the sell side, the most recent transaction saw Leibowitz unload 2,000 shares at a sale price of $8.07. This brings their total holding to 7,000.
It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Asta Funding, Inc. (NASDAQ:ASFI) as things move forward to see if its progress aligns with these transactions.