Former Hill International CEO David Richter said the company’s plummeting stock won’t affect his ability to inject $1 million of his own money into his congressional campaign.
“You are asking the person who is most concerned about Hill’s stock prices, I wouldn’t even say on a daily basis. I probably look at the stock every hour,” he said. “I’m one of the company’s largest shareholders. I’m very surprised by the current stock price, but it does not impact my ability to satisfy the commitment that I made to the party.”
Hill’s stock has fallen drastically over the last weeks, shedding more than half of its value amidst growing concern of the threat posed by COVID-19 and a crash in oil prices.
On Feb. 21, the stock was valued at $3.55 per share. Late Thursday morning, its price had fallen to $1.59 per share.
Put another way, Hill International stock, which accounts for the vast majority of Richter’s wealth, has shed roughly 55% of its value in about three weeks, and the former CEO will need to sell twice as many shares to fund his campaign as he would have in February.
Its plummet has outpaced the fall of the NYSE index, which has lost a comparatively meager 20% of its value since Feb. 21.
“I do plan on selling stock in the future. I don’t have a day job, so I don’t have an income,” Richter said. “My source of cash of is the stock, so I sell a little bit from time to time, and I have no problem being able to fund my bills, including the commitment I’ve made on the campaign, even at the current prices.”
According to financial disclosures Richter filed with the House clerk, the former Hill CEO owned between $6 million and $30 million in stock with the construction firm.
On Sept. 11, when the disclosure was filed, the stock was valued at $2.94 per share.
Richter said he expects the current stock market dive to be short lived, though there’s been little to suggest that will be the case.
“I think it’s all temporary,” he said. “I think the coronavirus fears are going to pass very quickly, and whether that’s a couple weeks or a couple months, that’s going to be over soon.”
The former CEO will likely need cash in the near future regardless of how the market fares.
He faces a competitive primary from former Burlington County Freeholder Director Kate Gibbs for the GOP nod to take on Rep. Andy Kim, and while Richter’s campaign isn’t in dire straits financially, just $152,980 of the $652,980 his campaign raised between March and December of last year came from donations.
The remainder came from a $500,000 personal loan.
The United States faces considerable risk from COVID-19.
Health officials have warned that the virus is likely to cause significant disruptions to everyday life on top of supply chain disruptions that are expected to sharply impact businesses.