Gregory Maffei, President and CEO at Liberty Media Corp (LSXMA), recently bought 50,000 shares. The buy increased his holdings by 1 percent, and came to a total cost just over $1.33 million.
The buy was offset by the CEO’s sale of shares that went through option exercise. Year-to-date, company insiders have mostly been sellers of shares, but last year saw a more even mix of buyers and sellers.
Overall, company insiders own 3.9 percent of shares.
The media conglomerate is down about 40 percent in the past year. The company has been unprofitable, and revenues only rose a scant 0.1 percent. A slowing economy will likely continue to weigh on advertising spending, which will further impact media companies.
Nevertheless, shares have gone from 26 times earnings last year to under 10 times forward earnings now, and look like they’re worth watching as a rebound play.
Action to take: For now, interested investors should wait for better pricing. Shares have had a steep slide in recent weeks, and may not have bottomed out quite yet. Once they do, there will be plenty of time to buy shares.
For traders, the October $25 puts, last going for about $2.00, offer mid-to-high double-digit gains in the coming weeks as shares continue to decline.
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.