Paul McTear, a director at Gray Television Inc . (NYSE:GTN), has sold 17,780 shares of the company's common stock, totaling approximately $67,019. The shares were sold at a weighted average price of $3.7694 per share, with individual transaction prices ranging between $3.741 and $3.80. The sale comes as the stock trades near its 52-week low of $3.27, having declined over 60% year-to-date. According to InvestingPro analysis, the stock appears undervalued at current levels. This marks McTear's first sale of company securities since joining the Board of Directors nearly seven years ago. Following the transaction, McTear holds 95,360 shares of Gray Television. The sale was part of routine investment diversification and tax-planning purposes. Despite recent price weakness, the company maintains a notable 9.73% dividend yield and trades at just 0.16 times book value. InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report about Gray Television's financial health and future prospects.
In other recent news, Gray Television, according to Loop Capital and Benchmark analysts, has seen a downward revision in its financial outlook, with price targets adjusted to $7.00 and $8.00 respectively, while maintaining a Buy rating. The adjustments were driven by a reassessment of the company's revenue and EBITDA projections for 2024, which were reduced due to a less robust broadcast TV political advertising climate. However, the company's management is actively engaging in cost reduction measures and purchasing debt at a discount in the open market.
Gray Television's third-quarter revenue hit the low end of its guidance, and political revenue is anticipated to fall short of expectations. The fourth-quarter revenue forecast has been impacted by hurricanes and the transition of SEC football broadcasting rights from CBS to ABC. Despite these challenges, the company has invested approximately $600 million in the Atlanta Assembly real estate complex.
Gray Media Group, Inc. reported a robust 18% rise in total revenue to $950 million in its Q3 2024 financial results, transitioning from a net loss to a net income of $83 million. The company's adjusted EBITDA surged by 61% to $338 million, with core advertising revenue experiencing a slight increase. Gray Media is implementing cost-reduction strategies projected to reduce operating expenses by $60 million annually and is capitalizing on new media rights deals to strengthen its broadcasting portfolio.
The company plans to reduce its total net debt by approximately $500 million in 2024 and is preparing for a deregulatory environment from the FCC (BME:FCC) which could facilitate merger and acquisition activities. Despite setbacks such as a projected decline in Q4 core advertising by 10% due to political crowding and the transition of SEC football to CBS, Gray Media remains confident in its operational strategies.
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