Millennial Media: 4 Different Insiders Have Purchased Shares This Month

May.19.14 | About: Millennial Media, (MM)

Summary

4 insiders purchased Millennial Media stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

3 of these 4 insiders increased their holdings by more than 10%.

Millennial Media (NYSE:MM) provides mobile advertising solutions to advertisers and developers in the United States and internationally.

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Insider buying during the last 30 days

Here is a table of Millennial Media's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Mary Spilman EVP May 16 15,000 264,010 shares +6.0%
Thomas Evans Director May 16 25,000 75,739 shares +49.3%
Ross Levinsohn Director May 15 30,000 57,739 shares +108.2%
Michael Barrett CEO May 12-13 291,000 744,693 shares +64.1%
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There have been 361,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Millennial Media's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
May 2014 361,000 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 25,000 0
October 2013 0 0
September 2013 0 0
August 2013 0 4,500
July 2013 0 285,200
June 2013 0 2,336
May 2013 0 20,000
April 2013 0 0
March 2013 0 124,268
February 2013 0 64,500
January 2013 0 0
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There have been 386,000 shares purchased and there have been 500,804 shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Millennial Media reported the first-quarter financial results on May 7 with the following highlights:

Revenue $72.6 million
Net loss $12.9 million
Cash $98.0 million
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The stock plunged after these results and the four insiders purchased their shares after the plunge.

Outlook

Millennial Media's second-quarter guidance is as follows:

Revenue $70-$75 million
Adjusted EBITDA loss $5-$6 million
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Competition

Millennial Media's competitors include Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), and Yahoo! (NASDAQ:YHOO). Here is a table comparing these companies.

Company MM AAPL GOOG YHOO
Market Cap: 410.86M 514.68B 351.16B 34.46B
Employees: 587 80,300 49,829 12,200
Qtrly Rev Growth (yoy): 0.47 0.05 0.19 -0.01
Revenue: 282.35M 176.04B 62.29B 4.67B
Gross Margin: 0.40 0.38 0.57 0.71
EBITDA: -5.02M 57.80B 18.58B 887.32M
Operating Margin: -0.05 0.29 0.23 0.09
Net Income: -24.31M 37.71B 12.34B 1.29B
EPS: -0.27 41.73 19.09 1.20
P/E: N/A 14.32 27.28 27.86
PEG (5 yr expected): -0.26 0.90 N/A 2.56
P/S: 1.46 2.88 5.63 7.46
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Millennial Media has the lowest P/S ratio among these four companies.

Here is a table of these competitors' insider activities during the last 30 days.

Company Insider buying / shares Insider selling / shares
AAPL 0 1,483
GOOG 0 442,036
YHOO 0 43,921
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Only Millennial Media has seen intensive insider buying during the last 30 days.

Conclusion

There have been four different insiders buying Millennial Media, and there have not been any insiders selling Millennial Media during the last 30 days. Three of these four insiders increased their holdings by more than 10%. Millennial Media has an insider ownership of 15.37%.

The four insiders purchased their shares at prices ranging from $3.45 to $3.83. I believe Millennial Media could be a good pick below $3.83 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.