AFC Gamma Remains Steady with Market Perform Rating by JMP Securities

JMP Securities has reaffirmed its "market perform" rating on the stock of AFC Gamma (NASDAQ:AFCG) in a research report released on Thursday. This reiteration suggests that the analysts believe the stock will continue to perform in line with the general market.

Recently, other financial institutions have made comments regarding AFC Gamma as well. For example, on October 8th, Seaport Res Ptn upgraded AFC Gamma's rating to a "strong buy" in their own research note. Furthermore, Alliance Global Partners initiated coverage on AFC Gamma on December 17th, setting a "buy" rating and establishing a price target of $13.00 for the stock.

In terms of broader analyst sentiment, based on information from MarketBeat.com, AFC Gamma currently has a mixed rating from five investment analysts: two have rated the stock as a hold, two as a buy, and one has given it a strong buy rating. The average rating for the stock is categorized as "Moderate Buy," with a consensus price target sitting at approximately $11.67.

AFC Gamma's Stock Performance

On Thursday, shares of AFC Gamma traded down by 2.1%, decreasing by $0.17 to reach a price of $8.09. The trading volume for the day was 14,792 shares, a significant reduction when compared to the average volume of 168,045 shares. AFC Gamma’s stock has shown a range over the past year, marking a low of $8.06 and a high of $13.28. Its simple moving averages indicate that the 50-day average sits at $9.02, while the 200-day average is $9.59. The company’s market capitalization stands at $177.51 million, with a price-to-earnings ratio of 20.21, and a beta value of 1.05. Additionally, the business has solid liquidity metrics, reporting a quick ratio and current ratio both at 3.92, alongside a favorable debt-to-equity ratio of 0.29.

Institutional Involvement in AFC Gamma

Changes in institutional ownership can also impact stock performance, and recent adjustments in positions reflect interest in AFC Gamma. During the third quarter, Tidal Investments LLC increased its holdings by 19.7%, now owning approximately 519,610 shares valued at about $5.3 million after acquiring an additional 85,655 shares. Similarly, Charles Schwab Investment Management Inc. raised its stake by 4.6% during the same quarter and now holds 50,403 shares, equating to a value of about $515,000 after purchasing an extra 2,200 shares. Other prominent investors, such as State Street Corp and Geode Capital Management LLC, have also increased their positions in AFC Gamma, contributing to a reported 26.53% institutional ownership of the stock. Barclays PLC was notable for raising its holdings by an impressive 257.0%.

Understanding AFC Gamma

AFC Gamma, Inc. specializes in providing financial services within the cannabis industry. The company is involved in originating, structuring, underwriting, and investing in various types of loans, including senior secured loans and commercial real estate loans. These financial products are primarily designed for established cannabis companies, and the loans are typically secured by real estate, equipment, licenses, and other allowed assets as per regulation.

Conclusion

Overall, while AFC Gamma has been reaffirmed with a "market perform" rating, mixed analyst opinions and the recent stock performance highlight both challenges and potential growth opportunities for the company in the evolving cannabis market.

AFCG, Market, Stocks