Liberty 77 Capital, a major holder of Lions Gate Entertainment (LFG), recently added 183,576 shares. The buy increased the fund’s position by 7%, and came to a total cost of $1,238,322. That’s the fund’s second buy of the month, following a 59,928 share pickup for just over $404,000.
Going further back the fund has been a steady and active acquirer of shares this year. Several company insiders have also been buyers this year, including the company CEO for 100,000 shares in March.
Overall, Lions Gate insiders own 8% of shares.
The producer and developer of film and television entertainment is down about 2% over the past year. Operationally, the company has fared worse, with revenues down by 8% over the past year, and reported losses of $1.1 billion.
Plus, Lions Gate has significantly increased its total debt, which is now over $4.6 billion, or nearly three times the value of outstanding shares.
Action to take: Besides the company’s poor operational performance, the share prices has been declining as well. Interested investors should wait until that trend changes.
For traders, given the current downtrend in shares, the March 2025 $6 puts look attractive here. They have considerable volume and open interest, and have a bid/ask spread of about $0.90. They can likely see mid double-digit returns from a further decline in shares over the coming few months.
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.