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Summary

  • Five insiders sold Emmis Communications stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • Three of these five insiders decreased their holdings by more than 10%.

Emmis Communications Corporation (NASDAQ:EMMS) engages in radio broadcasting activities in the United States.
(click to enlarge)

Insider selling during the last 30 days

Here is a table of Emmis Communications' insider activity during the last 30 days.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Gary KaseffDirectorApril 7-17114,200No276,399 shares29.2%
Richard LeventhalDirectorApril 46,390No408,475 shares1.5%
Patrick WalshCFOApril 459,215No514,006 shares10.3%
Scott EnrightEVPApril 2-330,000No47,916 shares + 76,400 options19.4%
Gregory LoewenPresident, PublishingApril 29,300No193,241 shares + 30,000 options4.0%

There have been 219,105 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Emmis Communications' insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
April 2014219,1050
March 201464,3000
February 2014523,9210
January 201400
December 201300
November 201300
October 2013222,7980
September 201325,0000
August 201306,829
July 2013231,5739,875
June 201300
May 201322,13112,897
April 201300
March 201300
February 201338,3000
January 2013211,2730

There have been 1,558,401 shares sold, and there have been 29,601 shares purchased by insiders since January 2013.

Financials

Emmis Communications reported the fiscal 2014 full-year, which ended February 28, financial results on April 3 with the following highlights:

Revenue$205.1 million
Net income$43.8 million
Cash$5.3 million
Debt$128.9 million

Three of these five insiders sold their shares after these results.

Outlook

Emmis Communications' fiscal 2015 first-quarter guidance is as follows:

Same station revenue growthLow to mid-single digits
Publishing revenue growthMid-single digits

Competition

Emmis Communications' competitors include Beasley Broadcast Group (NASDAQ:BBGI), and Entercom Communications Corp. (NYSE:ETM). Here is a table comparing these companies.

CompanyEMMSBBGIETM
Market Cap:138.81M195.99M398.37M
Employees:N/A4171,390
Qtrly Rev Growth (yoy):0.35-0.01-0.03
Revenue:205.15M104.91M377.62M
Gross Margin:0.220.360.33
EBITDA:29.06M29.05M99.86M
Operating Margin:0.120.260.24
Net Income:43.81M11.55M26.02M
EPS:0.940.510.68
P/E:3.5316.7515.60
PEG (5 yr expected):N/AN/A6.39
P/S:0.671.861.03

Emmis Communications has the lowest gross margin among these three companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
BBGI010,000
ETM00

Only Emmis Communications has seen intensive insider selling during the last 30 days.

Conclusion

There have been five different insiders selling Emmis Communications, and there have not been any insiders buying Emmis Communications during the last 30 days. Three of these five insiders decreased their holdings by more than 10%. Emmis Communications has an insider ownership of 22.80%.

Before going short Emmis Communications, I would like to get a bearish confirmation from the Point & Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Source: Emmis Communications: 5 Different Insiders Have Sold Shares This Month