Saga Communications Trust sells shares worth $47,048

Published 27/01/2025, 23:18
Saga Communications Trust sells shares worth $47,048

DETROIT—The Edward K. Christian Trust, a significant shareholder in Saga Communications Inc . (NASDAQ:SGA), has reported the sale of shares valued at $47,048, according to a recent filing with the Securities and Exchange Commission. The company, currently valued at $77.89 million, shows strong financial health with a significant 28.7% dividend yield and maintains more cash than debt on its balance sheet. According to InvestingPro analysis, the stock appears undervalued at current levels. The transactions occurred on January 23 and 24, involving a total of 3,757 shares of Class A Common Stock.

On January 23, the trust sold 552 shares at a weighted average price of $12.54, with individual transaction prices ranging from $12.52 to $12.59. Following this sale, the trust retained 960,564 shares. The following day, an additional 3,205 shares were sold at a weighted average price of $12.52, with prices ranging from $12.52 to $12.56, leaving the trust with 957,359 shares.

Judith Christian, acting as trustee, signed off on the filing, which was made public on January 27. The trust's sales were executed without any involvement in equity swaps.

In other recent news, Saga Communications reported a decline in net revenue by 3.5% to $28.1 million in the third quarter of 2024, with net income at $1.3 million or $0.20 per diluted share. Despite the downturn, the company experienced an increase in political revenue and is shifting its strategy towards "blended advertising" that combines radio and digital advertising. However, Saga anticipates a weaker performance in the fourth quarter with expected low to mid-single-digit declines.

The company also declared a quarterly cash dividend of $0.25 per share, amounting to approximately $1.6 million. This continuation of Saga's practice of returning value to shareholders aligns with the company's variable dividend policy, which balances maintaining a strong balance sheet and enhancing shareholder returns with strategic growth.

These recent developments include the strategic termination of a non-profitable digital services partnership, which may impact future revenue comparisons. Operating expenses are projected to rise by 3% to 5% for the year due to investments and inflationary pressures. Despite challenges in the automotive and broadcast sectors affecting advertising budgets, Saga remains optimistic about its "blended advertising" strategy to enhance local advertising results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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