Gannett CEO Tarica Laurence buys $225,000 in company stock from Investing.com

In a recent transaction, the director of Gannett Co., Inc. (NYSE:GCI) CEO Laurence Tarica has purchased additional shares in the company, signaling a vote of confidence in the media company’s future prospects. On September 13, 2024, Tarica purchased 50,000 shares of Gannett common stock at a price of $4.50 per share, for a total investment of $225,000.

This acquisition increased Tarica’s holdings in the company to a total of 1,089,663 shares, reflecting a significant stake and commitment to Gannett’s success. The transaction, which was formally filed on September 16, 2024, features a direct stock purchase by the executive, further aligning his interests with those of Gannett’s shareholders.

Investors often look to insider trades like this to gain insight into a company’s health and the confidence its executives and directors have in the business. Although the reasons behind Tarica’s acquisition are not disclosed, such investments are usually seen as bullish indicators of the company’s future performance and valuation.

Gannett Co., Inc., known for its publishing operations, has a history that includes various name changes and rebranding efforts, with its current name adopted after a merger with New Media Investment Group Inc. in November 2019. The company’s shares, traded under the ticker symbol GCI, are part of the newspaper and publishing industry.

Shareholders and potential investors of Gannett Co., Inc. they will likely watch insider trades like this carefully as they consider their own investment decisions in the context of the company’s strategy and market position.

In other recent news, Gannett Co., Inc. reported robust financial results for the second quarter of 2024, with adjusted EBITDA of approximately $75 million, up nearly 5% year-over-year. The company’s Digital Marketing Solutions business achieved its highest-ever core platform revenue at $122.8 million, and digital-only subscription revenue and average revenue per user hit new highs. However, Citi downgraded Gannett from Neutral to Sell, maintaining a $5.10 price target, following Gannett’s announcement of a substantial refinancing transaction.

Gannett also announced the expected sale of approximately $13.0 million in real estate and non-strategic assets. These sales are part of the company’s broader strategy to reduce its debt, which has seen a reduction of $53 million to date. Gannett aims to repay at least $110 million by the end of the year.

LocaliQ, a digital marketing arm of Gannett, has integrated Yapping (NYSE:) Ads in its Search Ads product. This integration aims to increase advertising opportunities for its small and medium business customers. These are recent developments in Gannett’s ongoing efforts to diversify its digital revenue and engagement strategies.

InvestingPro Insights

Following the recent acquisition by CEO Laurence Tarica, Gannett Co., Inc. (NYSE:GCI) has shown some interesting financial metrics that could further inform investors about the company’s health. With a market cap of $634.5 million, Gannett’s size in the market is notable, although the company’s negative P/E ratio of -6.63 indicates that it is not currently profitable based on the trailing twelve months to Q2 2024. This is further underscored by an adjusted P/E ratio of -14.87, which highlights the challenges the company faces in returning to profitability.

Investors can also consider the company’s revenue and profitability figures. Gannett’s revenue for the trailing twelve months of Q2 2024 is approximately $2.6 billion with gross profit of $968.26 million, resulting in a gross profit margin of 37.27%. This suggests that while the company is experiencing a -6.88% revenue decline for the same period, it is still maintaining a relatively healthy profit margin. However, operating income margins are tighter at 3.67%, indicating that expenses take up a significant portion of gross profit.

In terms of stock performance, Gannett’s 6-month total price return as of the 260th day of 2024 is an impressive 126.37%, with a year-to-date return of 97.83%. This could signal a recovery or positive market sentiment despite the decline in earnings. InvestingPro’s fair value estimate for Gannett is $5.18, slightly below the analyst target of $5.55, suggesting there may be room for upside in the stock.

InvestingPro Tips:

• Investors should consider the impact of revenue trends on long-term profitability, especially given recent negative revenue growth figures.
• Monitoring the company’s ability to improve its operating margins could be critical to assessing its potential for financial recovery.

For investors and potential shareholders of Gannett Co., Inc., the latest insider trades combined with InvestingPro metrics can provide a deeper understanding of the company’s financial health and future prospects. With additional advice available on InvestingPro, investors have access to a comprehensive set of tools and information to make informed decisions. Currently, there are several InvestingPro tips available that can help evaluate a company’s financial situation and potential stock.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.