Send me real-time posts from this site at my email

Why Entercom Communications Stock Is Jumping 12% Today

What happened

Shares of Entercom Communications (NYSE: ETM) are up over 12% in midday trading Thursday after the radio broadcaster said its CEO was buying up stock.

So what

While it wasn't nearly as much as Entercom's chairman emeritus purchased earlier this year when he scooped up some 1.2 million shares, CEO David Field's purchase of over 122,000 at prices ranging between $1.55 and $1.66 per share was a bullish sign for investors. He now owns almost 1.5 million shares.

Image source: Getty Images.

Now what

Investing legend Peter Lynch once noted that insiders can sell their stock for any number of reasons, but they typically buy it for only one reason: They think it's going to go up.

While plenty of executives have sought to prop up their company's stock by making big purchases, only to see it fall, it's notable that Chairman Emeritus Joseph Field's purchases have gained since he made them at prices ranging from $1.20 to $1.45 per share.

Still, Entercom's recent earnings report missed analyst expectations, recording a loss of $0.40 per share due to the pandemic on revenue of $176 million. Both of those were below Wall Street's consensus view of $198 million in revenue and a loss of $0.38 per share for the radio broadcaster.

10 stocks we like better than Entercom Communications
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Entercom Communications wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of August 1, 2020

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue