iHeartMedia (NASDAQ:IHRT) Shares Down 6.7% - Here's Why

Key Points

• Shares fell 6.7% to $3.90 on Friday on thin trading volume after Goldman Sachs downgraded IHRT from neutral to sell and cut its price target to $3.50; the stock's consensus rating is "Reduce" with an average target of $4.25.
• iHeartMedia missed EPS for the quarter, reporting $0.04 versus a $0.10 consensus and showing a negative net margin (-12.24%) despite revenues of $1.12 billion.
• CEO Robert W. Pittman bought 32,468 shares at $3.25 (raising his stake to 6.21 million shares), while company insiders collectively own about 8.5% of the stock.

iHeartMedia, Inc. (NASDAQ:IHRT - Get Free Report)'s stock price fell 6.7% on Friday . The company traded as low as $3.89 and last traded at $3.90. 21,933 shares changed hands during trading, a decline of 97% from the average session volume of 712,495 shares. The stock had previously closed at $4.18.

Wall Street Analyst Weigh In

IHRT has been the subject of several research reports. The Goldman Sachs Group lowered shares of iHeartMedia from a "neutral" rating to a "sell" rating and decreased their price target for the company from $4.00 to $3.50 in a report on Friday, January 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of iHeartMedia in a research note on Tuesday. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, iHeartMedia presently has an average rating of "Reduce" and an average target price of $4.25.

iHeartMedia Stock Up 0.6%

The firm's 50-day moving average price is $3.26 and its 200 day moving average price is $3.57. The firm has a market cap of $607.83 million, a P/E ratio of -1.31, a price-to-earnings-growth ratio of 40.08 and a beta of 1.64.

iHeartMedia (NASDAQ:IHRT - Get Free Report) last issued its quarterly earnings data on Monday, March 2nd. The company reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.10 by ($0.06). iHeartMedia had a negative net margin of 12.24% and a negative return on equity of 1.63%. The firm had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.10 billion.

Insider Transactions at iHeartMedia

In other iHeartMedia news, CEO Robert W. Pittman acquired 32,468 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The stock was acquired at an average cost of $3.25 per share, with a total value of $105,521.00. Following the acquisition, the chief executive officer directly owned 6,214,937 shares of the company's stock, valued at $20,198,545.25. This represents a 0.53% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 8.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of iHeartMedia during the third quarter valued at $25,000. BNP Paribas Financial Markets grew its position in iHeartMedia by 42.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 18,655 shares of the company's stock valued at $33,000 after buying an additional 5,591 shares in the last quarter. Royal Bank of Canada increased its stake in iHeartMedia by 67.7% during the 4th quarter. Royal Bank of Canada now owns 8,368 shares of the company's stock valued at $36,000 after buying an additional 3,378 shares during the period. CIBC Bancorp USA Inc. bought a new stake in shares of iHeartMedia during the 3rd quarter worth about $36,000. Finally, Tower Research Capital LLC TRC boosted its holdings in shares of iHeartMedia by 341.7% in the second quarter. Tower Research Capital LLC TRC now owns 24,342 shares of the company's stock valued at $43,000 after acquiring an additional 18,831 shares in the last quarter. Institutional investors and hedge funds own 93.89% of the company's stock.

About iHeartMedia

iHeartMedia, Inc NASDAQ: IHRT is a leading media and entertainment company specializing in radio broadcasting, digital streaming and live events. The company operates more than 860 full-power AM and FM radio stations across the United States, delivering music, news, sports and talk programming to local markets. Through its flagship digital platform, iHeartRadio, the company provides listeners with free and subscription-based access to thousands of live radio stations, curated music playlists and on-demand podcasts.

Originally founded in 1972 as Clear Channel Communications, the business rebranded to iHeartMedia in 2014 to reflect the growing importance of its digital and event-driven offerings.

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