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Monroe Capital: Insider Purchase

BDCs:
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On June 14, 2017 Monroe Capital (MRCC) filed a Form 4 filing, reporting an insider transaction by its CEO Theodore Koenig. The transaction was notable enough for BDC News Of The Day to report on:

BUY LOWISH

On June 13th, Mr Koenig purchased 16,697 shares at a price just below $15.00.

That brings Mr Koenig’s direct ownership to 34,466 shares. In addition, the Koenig Family Foundation owns just over 20,000 shares and Mr Koenig has indirect beneficial ownership of 207,799 shares in the MC Opportunities Fund.

MRCC recently issued new shares at $15.00, and the stock price dropped (very briefly) as low as $14.75. It’s now back at $15.17 and has been as high as $15.77.

Mr Koenig – probably following insider purchase window rules – nabbed a decent price just 5% off the highest point and close to NAV.

GOOD SIGN ?

Some investors rely heavily on insider buys and sells as part of their stock selection strategy.

The BDC Reporter is rarely swayed one way or another by insider moves because there are so many possible interpretations to what insiders are doing.

We have been relying more heavily than usual on insider moves in our speculative purchase at Medallion Financial (MFIN) with mixed results.

We offer up Mr Koenig’s purchase to those investors interested.

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