Magnolia Equity Fund Sells Wheeler REIT Preferred Shares Worth More Than $430,000 Via Investing.com

Magnolia Capital Fund, LP sold part of its holdings in Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLRD), selling preferred stock valued at more than $430,000. The transactions, which took place over two days, involved the sale of Series D Cumulative Convertible Preferred Stock at an average price of between $20.40 and $20.48 per share.

On September 17, 2024, 9,380 shares were sold at a weighted average price of $20.48, while the next day, 11,700 shares were sold at a weighted average price of $20.40. These sales reflect a strategic move by the investment fund, which is known for its significant stake in the real estate investment trust.

Magnolia Capital Fund, LP, under The Magnolia Group, LLC, with Adam K. Peterson as managing member, indirectly owns a substantial amount of the preferred stock of Wheeler REIT. After these transactions, Magnolia Capital Fund’s direct ownership is 249,626 shares. Both The Magnolia Group and Mr. Peterson have disclaimed beneficial ownership of these shares except for their pecuniary interest.

Detailed trade prices ranged between $20.30 and $20.65 on the first day and between $20.32 and $20.55 on the second day. The reported weighted average prices provide an overview of trades, which were executed in multiple trades at different prices.

Investors and analysts often examine these major stakeholder sales as indicators of confidence in the company’s future performance. Wheeler REIT, with a focus on real estate investments, has a diverse portfolio that often attracts institutional investors and funds such as Magnolia Capital Fund, LP.

The filing, signed by Adam K. Peterson on behalf of Magnolia Capital Fund and The Magnolia Group, reaffirms the ongoing adjustments and realignments of major investors in the real estate investment trust sector.

InvestingPro Insights

As Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLRD) experiences changes in key stakeholder positions, information from InvestingPro provides a clearer picture of the company’s financial health and market performance. Wheeler REIT’s market capitalization stands at a modest $12.05 million, reflecting the breadth of its operations in the real estate investment sector. Despite a difficult period, the company has shown strong performance over the past month with a total price return of 8.95% and an even more impressive six-month total price return of 34.12%.

However, it is important to note that Wheeler REIT has not been profitable over the past twelve months, as indicated by a negative P/E ratio, which is currently at -0.03 when adjusted for the trailing twelve months since Q2 2024. This metric is crucial for investors evaluating the company’s earnings relative to its share price. Additionally, the company’s high gross profit margin of 65.8% underscores its ability to retain a significant portion of revenue after accounting for cost of goods sold, which is a positive sign for operational efficiency.

InvestingPro’s advice for Wheeler REIT highlights the high volatility of the share price, which can be a double-edged sword for investors. While it can offer opportunities for quick wins, it also suggests a higher risk profile that requires careful consideration. Additionally, with the company’s liquid assets exceeding short-term liabilities, Wheeler REIT appears to be in a strong position to cover its immediate liabilities, which is reassuring for investors concerned about financial stability.

For those interested in a deeper analysis, InvestingPro offers additional advice that can help investors understand the nuances of Wheeler REIT’s financial position and market performance. To explore this information further, visit https://www.investing.com/pro/WHLRD, where a total of 12 InvestingPro Tips are available, providing a comprehensive overview of the company’s investment profile.

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