Rockefeller Capital Management L.P., a premier institutional investor, has recently garnered attention in the financial world for its substantial increase in holdings of iHeartMedia, Inc. (NASDAQ:IHRT). According to the company’s most recent filing with the Securities and Exchange Commission (SEC), Rockefeller Capital Management L.P. boosted its ownership of IHRT shares by an impressive 77.3% during the fourth quarter. This move signifies a significant show of confidence in iHeartMedia’s potential for growth and success.
As per the SEC filing, Rockefeller Capital Management L.P. now possesses 142,250 shares of iHeartMedia, after acquiring an additional 62,000 shares. The value of these holdings is estimated at $871,000 as of the filing date on June 28, 2023. While this may seem like a small percentage compared to their overall portfolio, it solidifies Rockefeller’s interest and faith in iHeartMedia’s future prospects.
iHeartMedia, Inc., a global media and entertainment corporation operating across borders, provides valuable services to audiences worldwide. Divided into three main segments—the Multiplatform Group, Digital Audio Group, and Audio & Media Services Group—iHeartMedia delivers broadcast radio stations along with sponsorships and live events. Furthermore, the company operates Premiere Networks, which produces and distributes syndicated radio programs to numerous radio station affiliates.
On Wednesday morning when trading commenced, IHRT shares opened at $3.56. Over the past fifty days leading up to June 28th,, analysts have observed an average price of $3.19 for this stock—a significant decrease from its 200-day moving average price of $5.10. It should be noted that despite this drop in price over time, iHeartMedia continues to hold strong with a market capitalization of $510.11 million.
A deeper analysis reveals that IHRT’s performance over the past year has been somewhat volatile; the stock reached a 12-month low of $2.21 and a high of $10.85. With a price-to-earnings (PE) ratio currently standing at -1.21, iHeartMedia’s valuation may seem intriguing to those investors who seek undervalued assets. Additionally, the company possesses a beta of 1.65, indicating a slightly higher risk compared to the broader market.
Investors should also take note of iHeartMedia’s financial health and liquidity position. As disclosed in its most recent filing with the SEC, the company has a debt-to-equity ratio of 11.43—an important metric measured to assess overall financial stability. A current ratio and quick ratio both standing at 1.94 further solidify the company’s ability to meet short-term obligations promptly.
As Rockefeller Capital Management L.P expands its holdings in iHeartMedia, Inc., it is evident that they recognize the tremendous potential within this media and entertainment giant. The substantial increase in ownership evidently depicts Rockefeller’s faith in IHRT’s future growth trajectory and profitability.
Only time will tell whether this strategic move aligns with Rockefeller Capital Management L.P.’s broader investment objectives successfully; however, it undoubtedly presents an intriguing development within the financial landscape. For those closely following iHeartMedia, Inc., all eyes are now on how this recent endorsement from Rockefeller shapes its course going forward—a course that holds great possibilities for both companies involved and their stakeholders alike
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Title: Institutional Investors and Hedge Funds Show Confidence in iHeartMedia Despite Challenging Financial Performance
Institutional investors and hedge funds have recently been making moves in the stock market, particularly in relation to iHeartMedia, Inc. These firms have been buying and selling shares of the media and entertainment company, showing their confidence or lack thereof in its future prospects.
One such institutional investor that increased its stake in iHeartMedia is Jane Street Group LLC. In the fourth quarter, Jane Street grew its position by a significant 43.4%, now owning 11,152 shares of the company’s stock valued at $68,000. This increase was fueled by an acquisition of an additional 3,373 shares during this period.
Bridgefront Capital LLC also joined the ranks of institutional investors flocking towards iHeartMedia. This investment firm acquired a new stake in the company during the last quarter of 2022, valuing it at approximately $86,000. This move signifies Bridgefront Capital’s belief in the future potential of iHeartMedia.
State of Wisconsin Investment Board is another institutional investor that has demonstrated its faith in iHeartMedia’s growth prospects. It grew its position by 4% during the same quarter, acquiring an additional 12,058 shares valued at $1,816,000. The State of Wisconsin Investment Board now owns a considerable sum of iHeartMedia stocks.
Silver Point Capital L.P., known for its hedge fund strategies, also showed interest in iHeartMedia by increasing its stake during this period. Silver Point Capital L.P. saw a growth rate of 13.6% and currently holds approximately 5,546,124 shares valued at $33,998,000.
Millennium Management LLC is yet another institutional investor that recognized the potential value in investing in iHeartMedia and acquired a new stake totaling around $3,622,000 in the fourth quarter.
The cumulative investments made by these institutional investors and hedge funds signify their confidence and trust in iHeartMedia as a media and entertainment company. Together, these entities own 65.49% of the company’s stock, showcasing their belief in its long-term growth potential.
In related news to these investments, CEO Robert W. Pittman made a significant move by personally purchasing 88,028 shares of iHeartMedia’s stock on May 5th. The average cost per share for this transaction was $2.88, resulting in a total value of $253,520.64. Following this acquisition, Pittman now owns 1,971,323 shares valued at $5,677,410.24.
These activities have not gone unnoticed as they were disclosed in a document filed with the Securities & Exchange Commission. Owning 4.20% of the company’s stock himself certainly emphasizes Pittman’s belief in its future success.
Turning our attention to iHeartMedia as a company, it operates globally as a media and entertainment powerhouse with three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group offers various services such as broadcasting radio stations and sponsorship opportunities along with organizing live and virtual events.
However, when iHeartMedia recently announced its quarterly earnings data on May 2nd, it reported disappointing figures. With earnings per share (EPS) amounting to ($1.50), the company fell short of the consensus estimate by ($0.79). Alongside this setback in profitability was an unfortunate negative return on equity of 14.70% and a negative net margin of 11.30%.
Fortunately for iHeartMedia investors, its revenue for the quarter managed to surpass expectations reaching $811.24 million compared to the estimated figure of $795.37 million.
Despite these challenges faced by iHeartMedia recently concerning its financial performance, investment firms have not completely turned away from the opportunity presented by investing in this media giant.
Numerous research reports have been published recently, with several analysts presenting varying opinions on the company’s future prospects. B. Riley, for instance, lowered its price objective on iHeartMedia shares from $16.00 to $13.00 in its research report published on May 3rd.
JPMorgan Chase & Co., however, adopted a more pessimistic view by reducing its rating on iHeartMedia from “neutral” to “underweight,” and adjusting the target price for the company from $10.00 to $5.00 back in March.
Morgan Stanley aligned itself with JPMorgan’s perspective by lowering its target price on iHeartMedia shares, setting it at $5.00 and giving it an “underweight” rating.
Wells Fargo & Company also joined the bearish sentiment, reducing its target price on iHeartMedia shares from $8.00 to $4.50 last month.
Bank of America took this bearish viewpoint even further by downgrading iHeartMedia from a “neutral” rating to an “underperform” rating, lowering its target price significantly from $6.50 to $4.00 back in late March.
It is important to note that not all analysts share such a negative outlook towards iHeartMedia stocks as one analyst issued a buy rating for