SAN ANTONIO—James A. Rasulo, a director at iHeartMedia, Inc. (NASDAQ:IHRT), recently sold 40,223 shares of the company's Class A common stock, according to a regulatory filing. The shares were sold at a weighted average price of $2.3968, with the transaction amounting to approximately $96,406.
Following this sale, Rasulo retains ownership of 339,322 shares directly. The transactions were executed solely for tax management purposes, as noted in the filing. The shares were sold in multiple transactions at prices ranging from $2.35 to $2.43. Rasulo has committed to providing detailed information on the number of shares sold at each price upon request.
"In other recent news, iHeartMedia reported a 5.8% increase in consolidated revenues to $1.04 billion in its Q3 2024 Earnings Call, along with an adjusted EBITDA of $205 million. This growth was led by the company's Digital Audio Group, which experienced a 12.7% increase in revenue. However, the Multiplatform Group saw a slight revenue decline. Additionally, iHeartMedia announced a Transaction (JO:TCPJ) Support Agreement with debtholders, a move aimed at extending debt maturities and reducing overall debt.
In other developments, BofA Securities raised iHeartMedia's stock rating from Underperform to Neutral and increased their price target to $3.00. This decision was influenced by a reassessment of the company's expected EBITDA for 2025 and recent developments, including the aforementioned debt agreement. BofA Securities now views the risk/reward balance at the current stock levels as more even.
Furthermore, iHeartMedia adjusted its full-year 2024 adjusted EBITDA guidance slightly downwards, while anticipating revenue growth and increased adjusted EBITDA for Q4 2024. These are among the latest developments for iHeartMedia, reflecting the company's resilience and strategic approach to its financial health."
InvestingPro Insights
While James A. Rasulo's recent stock sale at iHeartMedia, Inc. (NASDAQ:IHRT) may raise eyebrows, it's crucial to consider the broader financial landscape of the company. According to InvestingPro data, iHeartMedia's market capitalization stands at $334.65 million, reflecting its current position in the media industry.
Despite the director's sale, iHeartMedia has shown some positive signs. An InvestingPro Tip highlights that the stock has experienced a strong return over the last three months, with a price total return of 55.63% in that period. This upward momentum is further emphasized by another tip indicating a large price uptick over the last six months, which aligns with the 71.32% price total return observed during that timeframe.
However, investors should approach with caution. Another InvestingPro Tip notes that analysts do not anticipate the company will be profitable this year. This is corroborated by the negative P/E ratio of -1.06 for the last twelve months as of Q3 2024, suggesting current challenges in profitability.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 7 more tips available for iHeartMedia. These tips could provide valuable context to Rasulo's stock sale and the company's overall financial health.
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