Gannett director Tarica Laurence buys $225,000 in company stock

In a recent transaction, Gannett Co., Inc. (NYSE:GCI) director Laurence Tarica has acquired additional shares in the company, signaling a vote of confidence in the media firm's future prospects. On September 13, 2024, Tarica purchased 50,000 shares of Gannett's common stock at a price of $4.5 per share, amounting to a total investment of $225,000.


This purchase has 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 officially filed on September 16, 2024, showcases a direct acquisition of shares by the director, further aligning his interests with those of Gannett's shareholders.


Investors often look to insider transactions such as this for insights into a company's health and the confidence that its executives and directors have in the business. While the reasons behind Tarica's purchase are not disclosed, such investments are typically seen as optimistic indicators about 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 being adopted after a merger with New Media Investment Group Inc. in November 2019. The company's stock, traded under the ticker symbol GCI, is part of the newspapers and publishing industry.


Shareholders and potential investors in Gannett Co., Inc. will likely keep a close eye on insider transactions like this one, 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 an adjusted EBITDA of approximately $75 million, a nearly 5% increase from the previous year. The company's Digital Marketing Solutions business achieved its highest core platform revenue in history at $122.8 million, and its digital-only subscription revenue and average revenue per user have reached new highs. However, Citi has downgraded Gannett's rating from Neutral to Sell, maintaining a price target of $5.10, following Gannett's announcement of a substantial refinancing deal.


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 year-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 Yelp (NYSE:YELP ) Ads into its Search Ads product. This integration aims to enhance advertising opportunities for its small to mid-sized business customers. These are recent developments in Gannett's ongoing efforts to diversify its digital revenue and engagement strategies.
InvestingPro Insights


Following the recent insider purchase by director Laurence Tarica, Gannett Co., Inc. (NYSE:GCI) has shown some intriguing financial metrics that may further inform investors about the company's standing. With a market capitalization of $634.5 million, Gannett's size in the marketplace is notable, though the company's negative P/E ratio of -6.63 indicates that it is not currently profitable based on the last twelve months as of Q2 2024. This is further emphasized by an adjusted P/E ratio of -14.87, which underscores the challenges the company faces in returning to profitability.


Investors may also consider the company's revenue and profitability metrics. Gannett's revenue for the last twelve months as of Q2 2024 stands at approximately $2.6 billion, with a gross profit of $968.26 million, resulting in a gross profit margin of 37.27%. This suggests that while the company is facing a revenue decline of -6.88% 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 are taking a significant share of the gross profits.


Regarding stock performance, Gannett's 6-month price total 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 revenue decline. The InvestingPro Fair Value estimate for Gannett stands at $5.18, slightly below the analyst target of $5.55, suggesting there might be some room for stock price growth.


InvestingPro Tips:
Investors should consider the impact of revenue trends on long-term profitability, especially given the recent negative revenue growth figures.
Monitoring the company's ability to improve its operating margins could be key to evaluating its potential for a financial turnaround.


For investors and potential shareholders of Gannett Co., Inc., the latest insider transactions combined with the InvestingPro metrics can provide a deeper understanding of the company's financial health and future prospects. With additional tips available on InvestingPro, investors have access to a comprehensive set of tools and insights to make informed decisions. Currently, there are several more InvestingPro Tips available that can help in evaluating the company's financials and stock potential.

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Source: Investing.com