Jimmy Iovine, a director at Live Nation Entertainment (LYV), recently added 13,740 shares. The buy increased his holdings by 42 percent, and came to a total cost of just over $1 million.
This is the first insider buy at the company since March, when a director bought shares at a price about 25 percent higher than where the stock trades today. Over the past three years, company insiders have generally been regular and steady sellers of shares.
Despite the massive and regular share sales, insiders still own about 33 percent of Live Nation.
The online ticket seller is down about 27 percent in the past year, even as earnings have more than doubled and revenues have soared by over 670 percent.
The stock is valued at just over 1x its price to sales ratio, down from 15 times last year. And the stock has gone from 139 times earnings last year to 62 times forward earnings today.
Action to take: The company is part of an oligopoly in online event sales, and should continue to benefit from that trend in the years ahead. Investors can pick up shares near their 52-week lows at present and nab a rebound in the next year. The company doesn’t pay a dividend.
For traders, the April 2023 $75 calls, last going for about $8.00, offer mid-double-digit returns on a continued move higher in shares in the coming 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 of the companies mentioned in this article.