Don’t look now, but Entercom Communications may very well be on Wall Street’s express lane to stock value restoration, as the audio media company’s stock on Thursday surpassed the $2 mark for the first time since St. Patrick’s Day.
It’s a highly positive feat for ETM, which was at 95 cents on May 13.
With the NYSE Closing Bell, Entercom shares finished on June 4 at $2.02.
While that pales in comparison to the mid-$4 range ETM had been trading at until the COVID-19 pandemic cratered many a media stock, it’s a highly encouraging sign that the worst may be over for the company that obtained the former CBS Radio properties in a tax-free Reverse Morris Trust arrangement — and has yet to fully capitalize on some of these assets.
On April 7, the worst was seen, as ETM finished at $0.77.
Now, Entercom shares have seen a 162.3% increase in value since that fateful coronavirus-infected trading session.
What’s buoying ETM? Talk of a return of professional sports certainly helps, given its outsized exposure to live play-by-play in multiple markets. But, it could also be the disclosure on May 20 by Entercom that its Chairman Emeritus, Joseph Field, has increased his total number of shares to more than 15 million.
Field purchased, in aggregate, 1.2 million shares of Entercom common stock. According to a Form 4 filing, the purchases are comprised of 423,908 Class A common shares at $1.2232 a piece, made May 18; the acquisition of 576,092 Class A shares on May 19, at $1.352 a piece; and the acquisition of 200,000 Class A shares at $1.433 a piece on May 20.
This puts the total number of shares owned by Joseph Field at 15,151,336.
By comparison, No. 2 shareholder David Field, his son and current President/CEO, holds 2.45 million shares (as of March 1).
Entercom was among the companies Simply Wall St. recently took a magnifying glass to when pouring over the Q1 2020 results — and what analysts had to say. Their report? Entercom is highly regarded, and investors seem to be paying attention, given the action on ETM Thursday.