Liberty 77 Capital LP, a major holder of Lions Gate Entertainment (LGF), continues to add to its stake. The fund recently bought 1,129,609 shares, increasing its holdings by 12%, at a cost of $9.95 million.
That follows up on three buys the fund made back in June. Going further back, between late 2022 and March 2024, company directors and insiders also bought shares. There have been no insider sales at Lions Gate over the past two years.
Overall, LGF insiders own 7.7% of shares, and institutions own 98.8% of shares.
The entertainment production business is up 7% over the past year, far lagging the overall stock market. That’s on par with media stocks in general, which have lagged other segments of the market over the past two years.
Lions Gate shares currently trade at 0.5 times their price to sales, and at less than 11 times forward earnings. Both valuations point to shares potentially heading higher over time.
Action to take: LGF shares have started to trend higher since hitting a 52-week low in early June. They are likely to trend higher from here, at least as a momentum play.
For traders, the December 2024 $10 calls, last trading for about $1.05, could see high double-digit returns in the months ahead if shares continue their current uptrend higher.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.