iHeartMedia Inc. (NASDAQ: IHRT) stock jumped 6.60% on Friday to $9.05 against a previous-day closing price of $8.49. With 1.08 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.01 million shares. During the session, the Broadcasting company that operates in wider Communication Services sector, reached to the highest price of $9.39 whereas the lowest price it dropped to was $8.60. The 52-week range on IHRT shows that it touched its highest point at $27.62 and its lowest point at $6.43 during that stretch. It currently has a 1-year price target of $14.12.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of IHRT was up-trending over the past week, with a rise of 15.58%, but this was up by 16.93% over a month. Three-month performance dropped to -45.15% while six-month performance fell -55.31%. The stock lost -64.54% in the past year, while it has lost -56.99% so far this year. A look at the trailing 12-month EPS for IHRT yields 0.15 with Next year EPS estimates of 1.08. For the next quarter, that number is 0.08. This implies an EPS growth rate of 96.00% for this year and 25.09% for next year. EPS is expected to grow by 7.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 21.20%.
Float and Shares Shorts:
At present, 147.51 million IHRT shares are outstanding with a float of 117.52 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.84 million, which was 3.40% higher than short shares on Jun 14, 2022. In addition to Mr. Robert W. Pittman as the firm’s Chairman & CEO, Mr. Richard J. Bressler serves as its Pres, COO, CFO & Director.
Through their ownership of 105.11% of IHRT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 77.15% of IHRT, in contrast to 25.71% held by mutual funds. Shares owned by individuals account for 18.18%. As the largest shareholder in IHRT with 18.74% of the stake, Pacific Investment Management Co holds 22,682,770 shares worth 22,682,770. A second-largest stockholder of IHRT, Global Media & Entertainment Inve, holds 18,140,000 shares, controlling over 14.99% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in IHRT, holding 10,194,723 shares or 8.42% stake. With a 2.65% stake in IHRT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,202,219 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.29% of IHRT stock, is the second-largest Mutual Fund holder. It holds 2,771,192 shares valued at 21.86 million. iShares Russell 2000 ETF holds 2.26% of the stake in IHRT, owning 2,729,744 shares worth 21.54 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IHRT since 8 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With IHRT analysts setting a high price target of $22.00 and a low target of $9.00, the average target price over the next 12 months is $14.13. Based on these targets, IHRT could surge 143.09% to reach the target high and fall by -0.55% to reach the target low. Reaching the average price target will result in a growth of 56.13% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. IHRT will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $1.32 being high and $0.27 being low. For IHRT, this leads to a yearly average estimate of $0.86. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. iHeartMedia Inc. surprised analysts by -$0.06 when it reported -$0.33 EPS against a consensus estimate of -$0.27. The surprise factor in the prior quarter was $0.26. Based on analyst estimates, the high estimate for the next quarter is $0.19 and the low estimate is -$0.01. The average estimate for the next quarter is thus $0.08.
Summary of Insider Activity:
Insiders traded IHRT stock several times over the past three months with 29 Buys and 1 Sells. In these transactions, 9,392,467 shares were bought while 2,233 shares were sold. The number of buy transactions has increased to 65 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 20,642,233 while 1,180,953 shares were sold.