Global Media & Entertainment, a major owner of iHeartMedia Inc (IHRT), recently added 3,908,826 shares. The buy increased the fund’s stake by just over 17 percent, and came to a total purchase price of $74.1 million.
Company insiders, including directors, C-suite executives, and other major holders, have generally been buyers of shares over the past three years, with only one sale by an institution in October 2021.
Overall, company insiders own 2 percent of shares, with institutions owning a further 96 percent of the company.
Even with large institutional buying, shares are essentially flat over the past year. Revenue rose 14 percent in the same timeframe, and earnings surged 3,120 percent. But the company has largely been unprofitable in the past year.
Action to take: Shares just turned a profit and go for slightly under 6 times earnings, but 17 times forward earnings. The real draw is the company’s dominant stake in over 6,400 ratio stations nationwide. Shares don’t pay a dividend at present.
For traders, the stock has largely traded sideways over the past few months. The October $20 calls are an at-the-money trade. Last going for about $2.35, a move to the higher end of the stock’s trading range could lead to a mid double-digit move higher in the coming weeks.
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 of the companies mentioned in this article.