In a recent transaction, PodcastOne, Inc. (NASDAQ:PODC) director D. Jonathan Merriman has increased his stake in the company by purchasing additional shares. The transaction, which took place on September 10, involved the acquisition of 11,000 shares at a price of $1.62 per share, totaling $17,820.
The recent purchase by Merriman reflects a vote of confidence in the company's future, as buying shares on the open market is often seen as a bullish signal. Following the transaction, Merriman's direct holdings in PodcastOne have risen to a total of 147,539 shares.
It is also noted that shares held by the D. Jonathan and Odile Merriman Family Trust are indirectly associated with Merriman. As a trustee, he has shared voting and dispositive power over these shares. However, he disclaims beneficial ownership of the shares held by the Trust, except to the extent of his pecuniary interest.
Investors and market watchers often look to insider buying and selling patterns as indicators of company health and management's belief in the firm's prospects. Merriman's recent purchase adds to the narrative of insiders' perspectives on the company's valuation and potential.
PodcastOne, with its focus on computer programming, data processing, and other services, continues to be an entity of interest in the technology sector. Transactions like these offer insights into the confidence levels of those who lead the company and may influence investor sentiment.
In other recent news, PodcastOne, a subsidiary of LiveOne, has announced its preliminary Q1 results, projecting a record revenue of $13 million, a 21% increase compared to the same period last year. The company also reported significant growth metrics, including a rise to the 11th spot in Podtrac's rankings and an expanded reach to a 5.5 million unique monthly audience in the U.S. and 17.5 million global downloads and streams. However, these preliminary results are subject to change as they have not been reviewed by PodcastOne’s independent registered accounting firm.
In other developments, finance expert Jon Merriman has been welcomed to PodcastOne's Board of Directors, a move expected to enhance the company's growth initiatives and visibility within the financial sector. The company also anticipates revenues to hit between $50M and $55M for the fiscal year ending March 2025, following a successful fiscal year that concluded with the company reporting $43.3M in revenue and $660K in adjusted EBITDA.
PodcastOne has also entered a significant business-to-business partnership with a Fortune 250 company, which is expected to contribute over $20M in annual revenues. These recent developments highlight the company's positive trajectory.
InvestingPro Insights
Following the news of PodcastOne, Inc. (NASDAQ:PODC) director D. Jonathan Merriman's recent share purchase, a closer look at the company's financial health and market performance provides additional context. According to InvestingPro data, PodcastOne's market capitalization stands at a modest $39.19 million, and the company's price-to-earnings (P/E) ratio is currently negative at -2.27, reflecting its lack of profitability over the last twelve months. Despite this, the company has shown a significant revenue growth of 25.32% over the same period, demonstrating potential for future profitability.
InvestingPro Tips highlight some critical aspects of PodcastOne's financial position. The company holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Additionally, the company's liquid assets exceed its short-term obligations, suggesting that PodcastOne has a solid footing to manage its short-term liabilities. However, it's important to note that the company does not pay a dividend to shareholders, which could be a factor for income-focused investors to consider.
Moreover, while the company has suffered from weak gross profit margins, standing at 10.94%, analysts predict the company will be profitable this year, which could be the kind of turnaround Merriman is betting on with his share purchase. For investors interested in further insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/PODC, offering a deeper dive into PodcastOne's financial metrics and forecasts.
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