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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.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Mary SpilmanEVPMay 1615,000264,010 shares+6.0%
Thomas EvansDirectorMay 1625,00075,739 shares+49.3%
Ross LevinsohnDirectorMay 1530,00057,739 shares+108.2%
Michael BarrettCEOMay 12-13291,000744,693 shares+64.1%

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.

MonthInsider buying / sharesInsider selling / shares
May 2014361,0000
April 201400
March 201400
February 201400
January 201400
December 201300
November 201325,0000
October 201300
September 201300
August 201304,500
July 20130285,200
June 201302,336
May 2013020,000
April 201300
March 20130124,268
February 2013064,500
January 201300

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

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

Competition

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

CompanyMMAAPLGOOGYHOO
Market Cap:410.86M514.68B351.16B34.46B
Employees:58780,30049,82912,200
Qtrly Rev Growth (yoy):0.470.050.19-0.01
Revenue:282.35M176.04B62.29B4.67B
Gross Margin:0.400.380.570.71
EBITDA:-5.02M57.80B18.58B887.32M
Operating Margin:-0.050.290.230.09
Net Income:-24.31M37.71B12.34B1.29B
EPS:-0.2741.7319.091.20
P/E:N/A14.3227.2827.86
PEG (5 yr expected):-0.260.90N/A2.56
P/S:1.462.885.637.46

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.

CompanyInsider buying / sharesInsider selling / shares
AAPL01,483
GOOG0442,036
YHOO043,921

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.

Source: Millennial Media: 4 Different Insiders Have Purchased Shares This Month