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Potential iHeartMedia, Inc. (NASDAQ:IHRT) shareholders may wish to note that the Chairman & CEO, Robert Pittman, recently bought US$320k worth of stock, paying US$1.60 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 9.2%.
See our latest analysis for iHeartMedia
The Last 12 Months Of Insider Transactions At iHeartMedia
In fact, the recent purchase by Robert Pittman was the biggest purchase of iHeartMedia shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$1.64 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for iHeartMedia share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid US$499k for 300.00k shares. But they sold 40.22k shares for US$96k. In the last twelve months there was more buying than selling by iHeartMedia insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
iHeartMedia is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of iHeartMedia
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that iHeartMedia insiders own about US$7.3m worth of shares (which is 2.9% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About iHeartMedia Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on iHeartMedia stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in iHeartMedia.