Exploring AFC Gamma, Inc. (AFCG) Investor Profile: Who’s Buying and Why?

Have you ever wondered who's investing in Advanced Flower Capital Inc. (NASDAQ: AFCG) and, more importantly, why? As of December 31, 2024, institutional investors held approximately 29.23% of AFCG's shares, with a total value of holdings reaching $33 million. Major players like BlackRock, Inc. held 1,659,399 shares, while Vanguard Group Inc. owned 849,230 shares. But what exactly makes this publicly-traded, institutional lender, specializing in loans to state-licensed cannabis operators, an attractive prospect for these big financial institutions? Let's delve into the investor profile of AFCG and uncover the factors driving their investment decisions.

AFC Gamma, Inc. (AFCG) Who Invests in [Company Name] and Why?

Understanding the investor profile of AFC Gamma, Inc. (AFCG) is crucial for grasping market sentiment and potential stock performance. AFCG, a publicly-traded, institutional lender specializing in the cannabis industry, attracts a diverse range of investors with varying motivations and strategies.

Here’s a breakdown of the key investor types and their reasons for investing in AFC Gamma, Inc.:

• Institutional Investors: These include entities like hedge funds, mutual funds, and pension funds.
• Retail Investors: Individual investors who buy and sell securities for their own accounts.
• Insiders: Company executives and directors who own shares of AFC Gamma, Inc.

According to , the ownership structure of AFC Gamma (AFCG) stock comprises:

• Institutional Investors: Approximately 33.64%
• Insiders Ownership: 18.66%

As of April 7, 2025, 177 institutional owners and shareholders have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC), holding a total of 9,007,272 shares.

Major shareholders include:

• BlackRock, Inc.
• Vanguard Group Inc
• IWM - iShares Russell 2000 ETF
• Toroso Investments, LLC
• VTSMX - Vanguard Total Stock Market Index Fund Investor Shares
• Amplify ETF Trust - Amplify Alternative Harvest ETF
• State Street Corp
• Acadian Asset Management Llc
• D. E. Shaw & Co., Inc.
• Renaissance Technologies Llc

Some of the largest recent moves by hedge funds include:

• WASATCH ADVISORS LP removed 640,617 shares (-100.0%) from their portfolio in Q3 2024
• DEERFIELD MANAGEMENT COMPANY, L.P. (SERIES C) removed 191,162 shares (-100.0%) from their portfolio in Q4 2024
• ACADIAN ASSET MANAGEMENT LLC added 154,342 shares (+152.3%) to their portfolio in Q4 2024
• BLACKROCK, INC. added 106,684 shares (+6.9%) to their portfolio in Q4 2024
• RENAISSANCE TECHNOLOGIES LLC added 75,900 shares (+46.9%) to their portfolio in Q4 2024
• GSA CAPITAL PARTNERS LLP added 67,119 shares (+489.2%) to their portfolio in Q4 2024
• MIRAE ASSET GLOBAL ETFS HOLDINGS LTD. added 64,136 shares (+56.6%) to their portfolio in Q4 2024

Investment Motivations:

Several factors attract investors to AFC Gamma, Inc.:

• Growth Prospects: The cannabis industry, while facing regulatory hurdles, presents significant growth opportunities. AFC Gamma, Inc. is strategically positioned to capitalize on the increasing demand for financing within this sector.
• High Dividend Yield: AFC Gamma, Inc. has historically offered a high dividend yield, attracting income-focused investors. Despite recent adjustments, the dividend yield remains attractive compared to other REITs. For instance, AFC Gamma's dividend yield was around 16.26%, making it one of the highest-yielding stocks in its sector. The company declared a Q1 2025 dividend of $0.23 per common share, payable on April 15, 2025.
• Market Position: As a specialized lender, AFC Gamma, Inc. holds a unique position in the cannabis financing space. Its expertise in credit underwriting and understanding of cannabis market dynamics allows it to structure loans effectively.
• Focus on High-Quality Investments: AFCG's strategic shift towards higher-quality investments improves its risk profile by focusing on more established and financially stable cannabis operators, which reduces the likelihood of loan defaults and non-accrual situations.
• Strategic Equity Raises and Cautious Underwriting: These practices play a significant role in attracting hedge fund investments, as they reduce the likelihood of defaults and losses.

Investment Strategies:

Investors in AFC Gamma, Inc. employ various strategies:

• Long-Term Holding: Many institutional investors, such as Vanguard and BlackRock, adopt a long-term holding strategy, reflecting confidence in AFC Gamma, Inc.’s sustained performance and dividend payouts.
• Short-Term Trading: Hedge funds and other institutional investors may engage in short-term trading strategies to capitalize on price fluctuations and market volatility.
• Value Investing: Value investors are attracted to AFC Gamma, Inc.’s potential undervaluation, as indicated by analyst price targets. The average rating for AFCG stock is 'Buy,' with a 12-month stock price forecast of $11.0, an increase of 117.39% from the latest price.
• Income Investing: Given its history of high dividend yields, AFC Gamma, Inc. is a popular choice for income investors seeking regular dividend payments.

Financial Performance and Metrics:

Key financial data influences investor decisions:

• Revenue: In 2024, AFCG's revenue was $41.49 million, a decrease of -19.90% compared to the previous year's $51.80 million.
• Earnings: Earnings were $16.34 million, a decrease of -20.98%.
• Dividend: AFCG declared a regular cash dividend of $0.23 per common share for the first quarter of 2025.
• Total Assets: As of December 31, 2024, total assets were $402.1 million.
• Cash and Cash Equivalents: $103.6 million.
• Market Capitalization: $99.87M.

Factors Influencing Investor Sentiment:

Several factors can impact investor sentiment and stock performance:

• Regulatory Changes: Developments in cannabis legalization at the state and federal levels can significantly affect the industry and AFC Gamma, Inc.’s prospects.
• Loan Portfolio Performance: The quality and performance of AFC Gamma, Inc.’s loan portfolio are critical. Issues such as loan defaults can negatively impact earnings and investor confidence. As of March 2025, three loans totaling $144 million in principal were in default, accounting for 36.3% of AFCG's investment balance.
• Market Conditions: Broader economic trends and market sentiment towards REITs and the cannabis industry influence AFC Gamma, Inc.’s valuation.
• Company Strategy: Strategic decisions, such as portfolio diversification and risk management practices, play a key role in shaping investor perceptions.

Recent Developments:

• In June 2024, AFCG divested an $84 million loan, representing approximately 19% of its total book, reinvesting the capital into higher-quality operators.
• In the third quarter of 2024, the company decreased its quarterly dividend to $0.33 per share from the previous $0.48 per share.
• Analysts have increased their distributable earnings estimates for the company, with fiscal year 2024 estimates raised to $1.57 per share, up from $1.48.

By understanding these diverse investor profiles, motivations, and strategies, stakeholders can gain valuable insights into the dynamics of AFC Gamma, Inc.’s market behavior and potential future performance.

AFC Gamma, Inc. (AFCG) Institutional Ownership and Major Shareholders of AFC Gamma, Inc. (AFCG)

Institutional ownership in AFC Gamma, Inc. (AFCG) provides insights into the stability and potential direction of the stock. Examining which institutions hold significant stakes, and any recent changes to those positions, can be valuable for investors. These large investors often have a substantial impact on a company's stock price and overall strategy.

As of the latest available data, several institutional investors have significant holdings in AFC Gamma, Inc. (AFCG). While specific updated figures for 2024 and early 2025 are not available, a review of the most recent reports from late 2023 and early 2024 provides a picture of key institutional players.

Here's a general overview based on historical data; note that the exact holdings may have shifted:

• Vanguard Group: Typically holds a substantial position in AFC Gamma, Inc. (AFCG).
• BlackRock Fund Advisors: Another major institutional investor.
• State Street Corp: Often maintains a significant stake.
• Other Investment Firms: Various other firms and hedge funds also hold positions, contributing to the overall institutional ownership.

Changes in institutional ownership can signal shifts in sentiment. Increases in holdings may indicate confidence in the company's future prospects, while decreases could suggest concerns. Recent reports often detail these changes, reflecting ongoing evaluations by these major investors.

The influence of institutional investors on AFC Gamma, Inc. (AFCG) is considerable. Their trading activity can drive stock price movements, and their perspectives on company strategy can influence management decisions. Monitoring these investors provides valuable insights into the company's performance and outlook.

For further insights into AFC Gamma, Inc. (AFCG)'s financial standing, see Breaking Down AFC Gamma, Inc. (AFCG) Financial Health: Key Insights for Investors.

To provide a clearer picture, consider the hypothetical example of institutional ownership percentages in AFC Gamma, Inc. (AFCG) based on the kind of data that would typically be available. Please note that this is an illustrative example, and real-time data may vary.

Keep in mind that these percentages are for illustrative purposes only. Always refer to the most recent filings and financial news for precise data.

AFC Gamma, Inc. (AFCG) Key Investors and Their Impact on AFC Gamma, Inc. (AFCG)

Understanding who invests in AFC Gamma, Inc. (AFCG) and why can offer valuable insights into the company's prospects and potential stock movements. Examining notable investors, their influence, and recent activities provides a clearer picture of market sentiment and strategic direction.

While specific, real-time major investor holdings can fluctuate, we can explore the types of investors and their potential impact based on available information and standard investment practices. Please note that precise ownership percentages and recent transaction details require up-to-date filings, which may vary.

Institutional investors often hold significant stakes in companies like AFC Gamma, Inc. (AFCG). These can include:

• Mutual Funds: These funds pool money from numerous investors to invest in a diversified portfolio of stocks, bonds, and other assets.
• Pension Funds: Managing retirement funds for employees, these funds often seek stable, long-term investments.
• Hedge Funds: Employing various strategies, hedge funds aim to generate high returns, sometimes taking more aggressive positions.
• Insurance Companies: These companies invest premiums to cover future claims, typically favoring relatively safe investments.

These institutional investors can exert considerable influence through:

• Voting Rights: Large shareholders have a greater say in company matters, including board elections and significant corporate decisions.
• Market Impact: Substantial buying or selling activity can affect the stock price, influencing market sentiment.
• Engagement with Management: Major investors often engage with company leadership to discuss strategy, performance, and governance.

Activist investors, a subset of institutional investors, take a more proactive role in influencing company direction. They might:

• Publicly Advocate for Change: They may push for specific changes in strategy, operations, or governance through public campaigns.
• Nominate Board Members: Activists might seek to appoint their representatives to the board to implement their desired changes.
• Influence Corporate Transactions: They may try to influence mergers, acquisitions, or other significant transactions.

Recent moves by major investors, such as buying or selling large blocks of shares, can signal confidence or concern about the company's future. Monitoring these activities can provide insights into market sentiment and potential shifts in strategy.

Here's a hypothetical example of how different investor types might be represented in AFC Gamma, Inc. (AFCG)'s investor profile (note: this is purely illustrative and not based on specific, verified data):

Analyzing investor profiles involves examining:

• Ownership Concentration: How much of the company is held by a few large investors versus many smaller ones?
• Investor Types: What mix of institutional, retail, and insider investors exists?
• Historical Activity: What patterns of buying and selling have occurred over time?

By understanding these aspects, investors can gain a more informed perspective on AFC Gamma, Inc. (AFCG)'s market dynamics and potential future performance.

Keep in mind that this analysis should be complemented by a thorough review of AFC Gamma, Inc. (AFCG)'s financial health: Breaking Down AFC Gamma, Inc. (AFCG) Financial Health: Key Insights for Investors.

AFC Gamma, Inc. (AFCG) Market Impact and Investor Sentiment

Investor sentiment and market reactions are crucial indicators of a company's health and future prospects. For AFC Gamma, Inc. (AFCG), understanding these dynamics provides valuable insights into how major shareholders perceive the company and how the stock market responds to shifts in ownership or significant investor activities.

Recent market reactions to AFC Gamma, Inc. (AFCG) have been influenced by various factors, including changes in ownership and large investor moves. Monitoring these reactions helps in gauging the overall market confidence in the company.

Analyst perspectives play a vital role in assessing the impact of key investors on AFC Gamma, Inc. (AFCG)'s future. These insights provide a deeper understanding of the potential long-term effects of investor decisions on the company's performance and strategic direction.

Institutional investors frequently adjust their holdings based on their outlook on AFC Gamma, Inc. (AFCG)'s performance and broader market conditions.

Here's a glimpse into the recent ownership trends:

• As of March 8, 2024, 38.91% of AFC Gamma, Inc. (AFCG)'s stock is held by institutional investors.
• Recent transactions show that institutional investors have been actively trading AFC Gamma, Inc. (AFCG)'s stock. For instance, Virtu Financial LLC increased its holdings by 24.8% in the fourth quarter of 2023.
• Conversely, IMC Chicago LLC reduced its position by 78.4% during the same period.

These changes reflect differing views on AFC Gamma, Inc. (AFCG)'s prospects among institutional investors.

Below is a summary of institutional ownership changes:

Examining the activities of significant shareholders can offer clues regarding the overall sentiment surrounding AFC Gamma, Inc. (AFCG). An increase in holdings may signal confidence in the company's future, while a decrease could indicate concerns or a shift in investment strategy.

For further insights into AFC Gamma, Inc. (AFCG)'s financial standing, consider exploring: Breaking Down AFC Gamma, Inc. (AFCG) Financial Health: Key Insights for Investors

Analyzing investor sentiment, market reactions, and analyst perspectives collectively provides a comprehensive view of AFC Gamma, Inc. (AFCG)'s current position and potential trajectory in the market.