Chairman & CEO of iHeartMedia Robert Pittman Buys 7.6% More Shares

Potential iHeartMedia, Inc. (NASDAQ:IHRT) shareholders may wish to note that the Chairman & CEO, Robert Pittman, recently bought US$244k worth of stock, paying US$1.22 for each share. Although the purchase only increased their holding by 7.6%, it is still a solid purchase in our view.

Our free stock report includes 3 warning signs investors should be aware of before investing in iHeartMedia. Read for free now.

The Last 12 Months Of Insider Transactions At iHeartMedia

Notably, that recent purchase by Chairman & CEO Robert Pittman was not the only time they bought iHeartMedia shares this year. Earlier in the year, they paid US$1.60 per share in a US$320k purchase. That means that an insider was happy to buy shares at above the current price of US$1.25. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 500.00k shares for US$743k. But they sold 40.22k shares for US$96k. In the last twelve months there was more buying than selling by iHeartMedia insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for iHeartMedia

iHeartMedia is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does iHeartMedia Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 4.6% of iHeartMedia shares, worth about US$9.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At iHeartMedia Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on iHeartMedia stock. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 3 warning signs we've spotted with iHeartMedia (including 2 which are concerning).

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.

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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.