American Finance Trust, Inc. (NASDAQ:AFIN), closed the day at $6.34, a rise of 0.48 per cent and a stock price that brought its market cap to $642.56 million. The company closed the session with a trading volume of 498.32 thousand shares, below from its average daily trading volume of 710.92 thousand. It has been generating revenue of $299.7 million while net income posted by the company in last 12 months was -$3.1 million.
American Finance Trust, Inc. (Nasdaq: AFIN) on April 13, 2020 said that its Board of Directors (the “Board”) has approved a short-term stockholder rights plan (the “Plan”) to protect the long-term interests of the Company. The Board has adopted the Plan at this time due to the substantial volatility in the trading of the Company’s Class A common stock (the “Common Stock”) that has resulted from the ongoing COVID-19 pandemic. The adoption of the Plan by the Board is intended to allow the Company to realize the long-term value of the Company’s assets by protecting the Company from the actions of third parties that the Board determines are not in the best interest of the Company. By adopting the Plan, the Board believes that it has best positioned the Company to navigate through this period of volatility brought on by COVID-19. Similar to plans adopted recently by other publicly held companies, AFIN’s Plan is designed to reduce the likelihood that any person or group (including a group of persons that are acting in concert with each other) would gain control of AFIN through open market accumulation of stock by imposing significant penalties upon any person or group that acquires 4.9% or more of the outstanding shares of the Common Stock without the approval of the Board. The Plan is not intended to prevent or interfere with any action that the Board determines to be in the best interest of the Company and, among other exemptions, exempts passive investors (as described in the Plan).
As part of the plan, the rights will initially trade with Common Stock and will generally only become exercisable on the 10th business day after the Board becomes aware that a person or entity has become the owner of 4.9% or more of the shares of Common Stock or the commencement of a tender or exchange offer which would result in the offer or becoming an owner of 4.9% or more of the Common Stock. The Plan expires on April 12, 2021 unless the Plan is amended or the Rights are earlier exercised, exchanged or redeemed.
When looking at performance, we see the stock demonstrating a weekly performance of -15.01% while keeping a monthly performance of -4.66%. Quarterly performance saw a drop of -52.72% and continued the negative trend with a yearly performance of -46.23% while showing YTD performance of -52.19% which was -56.61% for last six months.
The 52-week range for the stock was 4.20 – 15.18 that put its current price at a premium of 50.95% to the 52-week low price whereas it is trading at a discount of -58.23% to the 52-week high price. The Diversified REIT company is currently upholding a gross margin of 73.8% while maintaining a net profit margin of -1%. Operating margin for the last 12 months remained 18.3%. The company’s EPS for trailing 12 months is -$0.03 and its annual dividend yield is 13.41% while it is estimated to be posting an EPS of $0.26 for the current quarter.
In the trailing twelve months, its return on assets (ROA) is -0.1% while ROE for the same period is -0.2% and have seen an average of 1.6% return on investment (ROI). The outstanding share count is 101.35 million shares but the size of available float is 101.35 million shares. The stock’s current price is lagging SMA-200 by -46.03% which is also -8.58% down from SMA-50. Reducing that period to a shorter term, we see the price is also lagging -8.52% to the SMA-20. Volatility for the week was 7.97%, which was 9.25% in the previous month.