It may be just three days into the third quarter, but Entercom shares are on a roll since Monday morning.
At the Opening Bell on July 1, ETM was priced at $5.89. At the early 1pm closing bell on Wednesday, they were finally at $6.25 per share — last seen May 21.
It’s good news for the radio broadcasting company, which has seen its stock greatly depreciate in value since late February, with a May rally somewhat thwarted.
Today’s closing price is $1 more than its year-to-date low, on March 29.
Volume was half its average, at some 601,374 shares.
With ETM down, Barrons reports company founder Joseph Field, the father of Enterocm President/CEO David Field (pictured), has purchased some $11.9 million of his company’s stock so far this year.
Why? Barrons says Field believes ETM is “deeply undervalued,” and as such snagged 1.96 million shares at a price of $5.98 each.
The publication notes that, according to a SEC filing, Joseph Field made the purchase through indirect sources including a trust and his wife.
The most recent stock purchase for the elder Field came on June 24, when he paid $853,221 for 143,524 shares, the filing notes.
As a result, Joseph Field now possesses 30,125 Entercom shares in a personal account, on top of some 12.2 million shares indirectly held by the company founder.
Field controls more than 25% of Entercom’s voting power and also owns 3.3 million shares of “supervoting” class B Entercom stock.
In a comment to Barrons emailed by Joseph Field elaborating on his stock acquisitions, he said ETM’s current value “does not reflect the company’s strong and growing free cash flow and earnings before interest, taxes, depreciation, and amortization, its 6% dividend yield or its strong competitive position and growth opportunities within the audio/radio industry.”
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