Audacy Shares Stumble In Rough Post-ETM Performance

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On April 9, the media company known for more than 50 years as Entercom Communications officially changed its ticker symbol to “AUD” to reflect its new corporate identity, Audacy.


On Tuesday, trading in AUD hit a fresh post-rebranding low, bringing it to its lowest price since the first day of March.

On volume of 1.14 million shares against average trading of 2.12 million shares, Audacy was down 7.2% to $4.835 as of 3:45pm Eastern. This marks the lowest value for what had been ETM since March 2.

At the closing bell, a $4.85 finish was registered, reflecting a 6.9% drop.

That said, perspective is everything — as Entercom, the company’s stock on Oct. 21, 2020 was at $1.49. And, it is still at one of the best values in nearly two years.

What makes the dip more noteworthy at this time is timing. On April 14, veteran analyst Jessica Reif Ehrlich gave a glowing review to Audacy’s biggest rival in its space, iHeartRadio. Could this have put the just-rebranded Audacy under the investor microscope, bringing it new scrutiny?

That’s simply speculation and rumor-filled talk right now.

Audacy’s Wall Street trip-up is magnified by a sign of approval from respected Wall Street blog Simply Wall Street, which on April 12 declared that the company “is possibly approaching a major achievement in its business.”

It asks when Audacy will hit its breakeven point.

The answer, Simply Wall St. says, is “around 12 months from now or less.”

This echoes sentiments expressed by Audacy head David Field.

Could Audacy’s debt-to-equity ratio be scaring off investors?

“Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot,” it warns. “Note that a higher debt obligation increases the risk around investing in the loss-making company.”

The comments didn’t seem to put a dent in AUD, which reached $5.21 on Monday and $5.49 on April 1.

Now, new concerns may be front and center for a company with a new name, but with the same asset composition it struggled on Wall Street with since a tax-free merger with CBS Radio.

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