Steven Price, the Executive Chairman of Townsquare Media, Inc. (NYSE:TSQ), has recently sold a significant amount of company stock, according to a new SEC filing. On April 4, 2024, Price sold 1,565,681 shares of Class B Common Stock at an average price of $12.36 per share, totaling approximately $19.35 million.
The transactions come alongside Price's acquisition of the same number of shares through the exercise of options, which he immediately sold. The options were exercised at a price of $8.74 per share, amounting to a total transaction value of around $13.68 million. It is noted that these options were set to expire soon, and the exercise was conducted as a "deemed" issuance followed by an immediate "deemed" reacquisition by the issuer at fair market value, as indicated in the footnotes of the filing.
Following these transactions, Price's direct holdings in Townsquare Media decreased, but he still maintains a significant stake in the company. The filing also revealed that he has a direct ownership of 360,737 shares of Class A Common Stock, which includes shares and vested options not subject to any vesting or transfer restrictions.
Townsquare Media, headquartered in Purchase, New York, operates in the radio broadcasting industry and is known for its focus on digital media and live events. The company's stock trades under the ticker TSQ on the New York Stock Exchange.
Investors often keep a close eye on insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. The full details of the transactions are available in the SEC Form 4 filing.
InvestingPro Insights
As Townsquare Media, Inc. (NYSE:TSQ) experiences notable insider transactions, investors may also consider recent performance metrics and market sentiment to gauge the company's standing. InvestingPro data shows a market capitalization of $191.59 million, indicating the size and scale of the company within the radio broadcasting and digital media industry. Despite a challenging environment reflected by a negative revenue growth of -1.91% over the last twelve months as of Q1 2023, Townsquare Media has managed to maintain a gross profit margin of 25.76%, suggesting a degree of resilience in its operational efficiency.
Moreover, the company's dividend yield stands at an attractive 6.29%, with the last dividend having an ex-date of April 4, 2024. This yield is particularly significant for income-focused investors and complements the InvestingPro Tip that Townsquare Media pays a substantial dividend to shareholders. Additionally, the stock's one-year price total return of 63.03% underscores the robust appreciation in share value that shareholders have witnessed, aligning with the InvestingPro Tip highlighting a strong return over the last year.
While the P/E ratio stands at -4.66, indicating challenges in profitability, the adjusted P/E ratio for the last twelve months as of Q4 2023 is 7.06, offering a different perspective on valuation when accounting for certain adjustments. Shareholders and potential investors should consider these varied metrics and the additional 15 InvestingPro Tips available for Townsquare Media on the InvestingPro platform. For a more comprehensive analysis and to access these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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