Advent Convertible and Income Fund (AVK) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Advent Convertible and Income Fund (AVK) trades at $12.61 with AI Score 56/100 (Grade B). Advent Convertible and Income Fund (AVK) is a closed-end fund specializing in convertible securities and lower-grade income securities. Market cap: $557M, Sector: Financial services.
Price as of Aug 21, 2026 · Last analyzed: Mar 16, 2026Analyst Coverage for AVK: AVK does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates AVK against Financial Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
AVK: the 3 scored disciplines are evenly split. Dominant signal: Seth Klarman bearish.
How is this calculated? →Why this analysis is different
- A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
Advent Convertible and Income Fund (AVK) Financial Services Profile
Advent Convertible and Income Fund (AVK) is a closed-end fund focused on generating income through a diversified portfolio of convertible and non-convertible securities. Operating within the asset management sector, AVK allocates approximately 60% of its investments to convertible securities and the remainder to lower-grade income securities, primarily in the U.S. market.
What Is the Investment Thesis for AVK?
Advent Convertible and Income Fund presents an investment opportunity for income-seeking investors. With a dividend yield of 11.88% and a P/E ratio of 4.13, AVK offers a potentially attractive income stream. The fund's strategy of allocating approximately 60% to convertible securities allows participation in potential capital appreciation, while the remaining 40% in lower-grade income securities enhances yield. Key value drivers include Advent Capital Management's expertise in fixed income and convertible securities, as well as the fund's diversified portfolio. Ongoing catalysts include favorable credit market conditions and continued demand for income-generating assets. Potential risks include interest rate fluctuations and credit risk associated with lower-grade securities.
Based on FMP financials and quantitative analysis
AVK Key Highlights
Market capitalization of $557M indicates a mid-sized closed-end fund.
- P/E ratio of 4.13 suggests the fund may be undervalued compared to its earnings.
- Profit margin of 88.4% reflects efficient management and strong profitability.
- Gross margin of 39.7% indicates a healthy spread between revenue and cost of goods sold.
- Dividend yield of 11.88% provides a substantial income stream for investors.
Who Are AVK's Competitors?
AVK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CHW Calamos Global Dynamic Income Fund | $8.43 | -0.47% | $538M | 45 |
| EAD Wells Fargo Advantage Funds - Allspring Income Opportunities Fund | $6.33 | -0.78% | $374M | 49 |
| ETB Eaton Vance Tax-Managed Buy-Write Income Fund | $15.60 | -0.38% | $458M | 47 |
| FRA BlackRock Floating Rate Income Strategies Fund, Inc. | $10.92 | -0.64% | $387M | 47 |
| HPI John Hancock Preferred Income Fund | $16.00 | -0.56% | $429M | 46 |
| EIPX FT Energy Income Partners Strategy ETF | $33.45 | +0.02% | $538M | 52 |
| SLIYX Multi Asset Income Fund Class Y | $10.45 | -0.19% | $507M | 57 |
| BLE BlackRock Municipal Income Trust II | $10.54 | -0.19% | $503M | 55 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are AVK's Key Strengths?
High dividend yield of 11.88% attracts income-seeking investors.
- Experienced management team at Advent Capital Management.
- Diversified portfolio of convertible and non-convertible securities.
- Strong profit margin of 88.4% indicates efficient operations.
What Are AVK's Weaknesses?
Exposure to lower-grade income securities increases credit risk.
- Sensitivity to interest rate fluctuations.
- Closed-end fund structure can lead to trading at a discount to net asset value (NAV).
- Reliance on the expertise of Advent Capital Management.
What Could Drive AVK Stock Higher?
Favorable credit market conditions could lead to improved performance of lower-grade income securities.
- Continued demand for income-generating assets could attract new investors to the fund.
- Potential interest rate cuts by the Federal Reserve could boost the value of fixed income securities.
- Strategic initiatives to enhance marketing and investor relations could increase awareness of the fund.
What Are the Key Risks for AVK?
Economic recession could lead to increased credit defaults and negatively impact portfolio performance.
- Rising interest rates could decrease the value of fixed income securities.
- Market volatility could impact the fund's net asset value (NAV).
- Reliance on the expertise of Advent Capital Management exposes the fund to key person risk.
What Are the Growth Opportunities for AVK?
- Expansion into new asset classes: AVK could explore opportunities to invest in other types of fixed income securities, such as high-yield bonds or emerging market debt. This could broaden the fund's investment universe and potentially enhance returns. The market for high-yield bonds, for example, is estimated to be worth trillions of dollars globally. Timeline: 1-3 years.
- Increased focus on ESG investing: Incorporating environmental, social, and governance (ESG) factors into the investment process could attract a growing segment of investors seeking socially responsible investments. Timeline: 1-2 years.
- Strategic partnerships: Collaborating with other financial institutions or asset managers could provide access to new distribution channels and investment expertise. For example, partnering with a wealth management firm could expand AVK's reach to individual investors. Timeline: Ongoing.
- Enhanced marketing and investor relations: Improving communication with existing and potential investors could increase awareness of the fund and attract new capital. This could involve developing a more informative website, hosting investor webinars, or attending industry conferences. Timeline: Ongoing.
- Leveraging technology: Utilizing advanced data analytics and artificial intelligence (AI) could improve investment decision-making and risk management. AI can be used to identify investment opportunities, monitor portfolio risk, and optimize trading strategies. The adoption of AI in asset management is growing rapidly, with significant potential to enhance performance. Timeline: 2-3 years.
What Are AVK's Competitive Advantages?
- Experienced management team at Advent Capital Management.
- Established track record in managing convertible securities.
- Diversified portfolio of fixed income assets.
- Closed-end fund structure provides a stable capital base.
What Does AVK Do?
Advent Convertible and Income Fund, established on April 29, 2003, is a closed-end fund managed by Advent Capital Management, LLC. The fund is designed to provide investors with a steady stream of income through strategic investments in the fixed income markets of the United States. AVK's investment strategy centers around a diversified portfolio consisting primarily of convertible securities and lower-grade, non-convertible income securities. Convertible securities, which constitute approximately 60% of the fund's holdings, offer the potential for capital appreciation alongside income generation. The remaining portion of the portfolio is allocated to lower-grade income securities, providing additional yield. Advent Capital Management employs a fundamental analysis approach to identify and select securities for the fund's portfolio. This involves a detailed evaluation of the financial health, industry dynamics, and growth prospects of potential investments. The fund's objective is to deliver attractive risk-adjusted returns by capitalizing on opportunities within the convertible and fixed income markets. AVK is domiciled in the United States and caters to investors seeking income generation through a professionally managed portfolio of fixed income assets.
What Products and Services Does AVK Offer?
- Invests in fixed income markets, primarily in the United States.
- Focuses on convertible securities and lower-grade non-convertible income securities.
- Manages a closed-end fund structure.
- Employs fundamental analysis to select investments.
- Aims to provide a steady stream of income to investors.
- Operates within the asset management industry.
How Does AVK Make Money?
- Generates revenue through investment income from its portfolio holdings.
- Charges management fees to investors based on assets under management.
- Utilizes a closed-end fund structure, allowing for a stable capital base.
- Employs a team of investment professionals to manage the portfolio.
What Industry Does AVK Operate In?
Advent Convertible and Income Fund operates within the asset management industry, specifically focusing on fixed income and convertible securities. The industry is characterized by a wide range of investment strategies and products, catering to diverse investor needs. Market trends include increasing demand for income-generating assets, particularly in a low-interest-rate environment. The competitive landscape includes other closed-end funds, mutual funds, and exchange-traded funds (ETFs) offering similar investment strategies. These include funds managed by CHW, EAD, ETB, FRA and HPI. AVK differentiates itself through its specific focus on convertible and lower-grade income securities.
Who Are AVK's Key Customers?
- Individual investors seeking income-generating investments.
- Institutional investors, such as pension funds and endowments.
- Financial advisors and wealth managers.
- Retail investors looking for diversified fixed income exposure.
AVK Revenue & Earnings Trend
In Q2 2026, AVK generated $49.9M in top-line revenue, marking a sequential decrease of 18.0%. The company recorded net income of $34.5M, with diluted EPS of $0.78. Revenue has contracted over three consecutive quarters, which investors in this small-cap Financial Services stock should monitor closely. Across the four most recent quarters, AVK averaged $1.25 in diluted EPS.
Advent Convertible and Income Fund (AVK) Valuation Context
Valued at $557M, AVK is classified as a small-cap stock. Relative to its peer group, AVK's quantitative score of 56/100 is roughly in line with the peer average of 47/100.
Key Financial Metrics
Return on equity for Advent Convertible and Income Fund stands at 24.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 15.0%, showing how much profit it generates from its asset base. AVK trades at a trailing price-to-earnings ratio of 3.84, below the Financial Services sector average of ~18x. Its free cash flow yield is 1.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.55 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 26.0%, the inverse of the P/E and a quick read on earnings relative to price.
Financial Health
Advent Convertible and Income Fund's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.89 places it in the grey zone, a middle ground that warrants monitoring.
AVK Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- High dividend yield of 11.88% attracts income-seeking investors.
- Experienced management team at Advent Capital Management.
- Diversified portfolio of convertible and non-convertible securities.
- Strong profit margin of 88.4% indicates efficient operations.
Bear Case
- Exposure to lower-grade income securities increases credit risk.
- Sensitivity to interest rate fluctuations.
- Closed-end fund structure can lead to trading at a discount to net asset value (NAV).
- Reliance on the expertise of Advent Capital Management.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · August 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $50M | $35M | $0.78 |
| Q4 2025 | $61M | $111M | $2.51 |
| Q2 2025 | $82M | $16M | $0.36 |
| Q4 2024 | $39M | $40M | $1.36 |
Based on FMP financials and quantitative analysis
AVK Latest News
No recent news available for AVK.
AVK Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for AVK.
Price Targets
Wall Street price target analysis for AVK.
AVK MoonshotScore
What does this score mean?
The MoonshotScore rates AVK 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: Tracy Vincent Maitland
CEO
Tracy Vincent Maitland serves as the CEO of Advent Capital Management, LLC. With extensive experience in the asset management industry, Maitland has played a pivotal role in shaping Advent's investment strategies and driving its growth. His background includes expertise in convertible securities and fixed income markets. Maitland's leadership is characterized by a focus on delivering consistent, risk-adjusted returns to investors. He is actively involved in portfolio management and strategic decision-making.
Track Record: Under Tracy Vincent Maitland's leadership, Advent Capital Management has successfully navigated various market cycles and delivered competitive returns to investors. He has overseen the growth of the firm's assets under management and expanded its product offerings. Maitland's strategic decisions have contributed to the fund's strong performance and its ability to adapt to changing market conditions.
AVK Financial Services Stock FAQ
What does the AI Score mean for AVK?
AVK holds an AI Score of 56/100 (Grade: B). This is an educational research signal, not a buy or sell recommendation. Advent Convertible and Income Fund (AVK) is a closed-end fund specializing in convertible securities and lower-grade income securities. Managed by Advent Capital Management, it aims to provide …
What does Advent Convertible and Income Fund do?
Advent Convertible and Income Fund is a closed-end fund that primarily invests in convertible securities and lower-grade non-convertible income securities within the U.S. fixed income market. Managed by Advent Capital Management, the fund aims to provide investors with a consistent income stream by strategically allocating its assets, with approximately 60% in convertible securities and the rest in lower-rated debt.
What are the main risks for AVK?
The main risks for Advent Convertible and Income Fund include credit risk associated with its investments in lower-grade income securities, interest rate risk, which can impact the value of its fixed income holdings, and market volatility, which can affect its net asset value (NAV). Additionally, the fund's reliance on Advent Capital Management exposes it to key person risk.
How sensitive is AVK to interest rate changes?
Advent Convertible and Income Fund's performance is sensitive to interest rate changes. Rising interest rates can negatively impact the value of its fixed income holdings, potentially leading to capital losses. However, the fund's allocation to convertible securities may provide some offset, as these securities can benefit from rising equity prices.
What is Advent Convertible and Income Fund's credit quality and risk management approach?
Advent Convertible and Income Fund invests a portion of its portfolio in lower-grade non-convertible income securities, which inherently carry higher credit risk. The fund's risk management approach involves conducting fundamental analysis to assess the creditworthiness of potential investments and diversifying its portfolio to mitigate risk. Provision levels and loan portfolio quality are key indicators of the fund's credit risk exposure.
What are the key factors to evaluate for AVK?
Advent Convertible and Income Fund (AVK) holds an AI score of 56/100 (moderate). Advent Convertible and Income Fund presents an investment opportunity for income-seeking investors. Not financial advice.
How frequently does AVK data refresh on this page?
AVK's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven AVK's recent stock price performance?
Advent Convertible and Income Fund (AVK) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: High dividend yield of 11.88% attracts income-seeking investors. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider AVK overvalued or undervalued right now?
Advent Convertible and Income Fund (AVK) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for AVK, limiting the depth of insights.
- Financial data is based on publicly available information and may be subject to change.
- This is a research platform for informational purposes only, not investment advice.