In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Nicholas Financial Inc. (NASDAQ:NICK) reported that Magnolia Capital Fund, Lp. has picked up 1,412,853 of common stock as of 2017-06-23.
The acquisition brings the aggregate amount owned by Magnolia Capital Fund, Lp. to a total of 1,412,853 representing a 18.1% stake in the company.
For those not familiar with the company, Nicholas Financial, Inc. (Nicholas Financial-Canada) is a holding company. The Company’s business activities are conducted through its subsidiary, Nicholas Financial, Inc. (Nicholas Financial). Nicholas Financial is a specialized consumer finance company engaged primarily in acquiring and servicing automobile finance installment contracts (Contracts) for purchases of new and used automobiles and light trucks. Nicholas Financial also originates direct consumer loans (Direct Loans) and sells consumer-finance related products. Another subsidiary, Nicholas Data Services, Inc. (NDS), acts as the interim holding company for Nicholas Financial. The Company is engaged in the business of providing financing programs, primarily on behalf of purchasers of new and used cars and light trucks. The Company originates Direct Loans in Florida and North Carolina. As of March 31, 2016, the Company’s automobile finance programs were conducted in 18 states.
A glance at Nicholas Financial Inc. (NASDAQ:NICK)’s key stats reveals a current market capitalization of $108.74 Million based on $12.50 Million shares outstanding and a price at last close of $8.42 per share.
Looking at insider activity, there are a few transactions worth noting.
Specifically, on 2017-06-22, Magnolia picked up 6,000 at a purchase price of $8.20. This brings their total holding to 1,412,853 as of the date of the filing.
On the sell side, the most recent transaction saw Fink unload 3,041 shares at a sale price of $15.93. This brings their total holding to 6,100.
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 Nicholas Financial Inc. (NASDAQ:NICK) as things move forward to see if its progress aligns with these transactions.
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