Advanced Flower Capital reports progress on $5 million stock repurchase program

Advanced Flower Capital (AFCG) has repurchased 1,060,089 shares of its common stock as part of a $5 million stock repurchase program, according to the company's Monday press release. The repurchase brings the total number of shares issued and outstanding to 22,468,755. The company's stock has surged 39% over the past six months, currently trading at $3.52 with a market capitalization of $79.6 million.

InvestingPro analysis suggests the stock is undervalued, with a Fair Value estimate predicting further upside potential. The buyback program, authorized by the board of directors, allows for the purchase of up to $5 million worth of shares in the open market. Repurchases must comply with the company's policies and relevant securities regulations, such as the Investment Company Act of 1940 and Rule 10b-18 under the Securities Exchange Act of 1934.

The program remains in effect until either $5 million in shares are repurchased or May 4, 2027. AFC reported its second-quarter 2026 financial results, with revenue of $8.69 million, exceeding expectations of $8.0 million. However, net investment income came in at $0.15 per share, slightly below the forecasted $0.1533. Despite this, the company covered its quarterly distribution three times, demonstrating a robust financial position.

The revenue beat and dividend coverage indicate AFC's financial health and flexibility, positively impacting investor sentiment.