Insider Buying

Live Nation Insider Buys $1 Million Worth of Stock After Share Price Fall

Live Nation Entertainment
(LYV:US)
12 months:
-35%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
DOJ investigation
Live Nation Entertainment
(LYV:US)
12 months:
-35%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
DOJ investigation
The image depicts the crowd in front of people playing musical instrument during nighttime with the blog introduction mentioned that board member scooped up $1.0 M worth of shares.

Insider transaction activity can help investors cut through the market noise. Insiders are some of the most informed participants in the market meaning their buying and selling activity can provide valuable trading signals.

In this report, we are going to highlight some interesting insider buying at Live Nation Entertainment Inc (LYV:US). Live Nation is an American company that manages ticket sales for live entertainment in the US and internationally. It was formed in 2010 by the merger of Ticketmaster and Live Nation. The company is listed on the New York Stock Exchange and currently has a market cap of $16.42 billion.  

Insider Buying at Live Nation

Our data shows that on December 1, board member Jimmy Iovine purchased 13,740 shares at a price of $73.28 per share. This is his very first insider trade and it cost him approximately $1.0 million, increasing his holding to 46,532 shares.

Music Industry Veteran

Mr. Iovine – who has served on the board since 2014 – is a music industry veteran. He is the founder and former Chairman of UMG's Interscope Geffen A&M Records unit, which under Iovine, became home to some of the biggest names in the music world including Dr. Dre, Nine Inch Nails, U2, The Black Eyed Peas, Eminem, and Lady Gaga. He also co-founded Beats Electronics and Beats Music with Dr. Dre. given his background, he is likely to have a good read on the industry.

DOJ Investigation

Live Nation stock has come under pressure recently (hitting two-year lows) on the back of a probe into the company by the Department of Justice (DOJ). The DOJ is reportedly looking into whether Live Nation has abused its power as the dominant force in the live music industry. There is speculation that the company could be broken up if the DOJ finds any evidence of misconduct.

Clearly, Mr. Iovine sees value in the stock after the recent pullback. The fact that the insider has invested $1 million in Live Nation shares now suggests that he expects them to bounce back.

And he’s not the only one who is bullish here. On November 28, analysts at Citi upgraded the stock to ‘buy’ from ‘neutral’, stating that the recent multiple compression has created an attractive entry point.

Given the size of Mr. Iovine’s trade, we think the stock is worth a closer look right now. 

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