Liberty 77 Capital LP, a major holder of Lions Gate Entertainment Corp (LGF-A), has made three buys so far this month, totaling over 2.6 million shares. The partnership has paid over $22 million to increase its stake.
Liberty 77 also made four buys in July for nearly 2 million shares, and three buys in June for nearly 1 million shares. The company’s CEO was also a buyer of 100,000 shares back in March.
Overall, Lions Gate insiders own 8% of shares, and institutions own the rest of the free float.
The entertainment services company is up 8% over the past year, far underperforming the overall stock market.
As with many other companies in its industry, Lions Gate has struggled over the past year. Revenues are down nearly 10%, and LGF failed to turn a profit. Larger media companies are looking to consolidate right now, but Lions Gate may be too small to be attractive in the current environment.
Action to take: Lions Gate shares recently sold off back near their 52-week low in the low $7 range. Media stocks look overly sold off right now, but it may take time for an upside catalyst to emerge.
For traders, shares have been prone to occasional spikes higher. The December 2024 $10 calls, last trading for about $0.55, could see high double-digit returns if traders take quick profits if such a spike higher occurs before year-end.
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.