Chairman & CEO of iHeartMedia Robert Pittman Buys 7.3% More Shares

Investors who take an interest in iHeartMedia, Inc. (NASDAQ:IHRT) should definitely note that the Chairman & CEO, Robert Pittman, recently paid US$2.06 per share to buy US$206k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 7.3%.

View our latest analysis for iHeartMedia

iHeartMedia Insider Transactions Over The Last Year

In fact, the recent purchase by Chairman & CEO Robert Pittman was not their only acquisition of iHeartMedia shares this year. They previously made an even bigger purchase of US$525k worth of shares at a price of US$5.56 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.43). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

iHeartMedia insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$4.00. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 2.1% of iHeartMedia shares, worth about US$7.5m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At iHeartMedia Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that iHeartMedia insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing iHeartMedia. At Simply Wall St, we've found that iHeartMedia has 3 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.