Kevin Paul Latek, Executive Vice President and Chief Legal and Development Officer at Gray Television Inc . (NYSE:GTN), has sold a significant portion of his holdings in the company. The stock, which InvestingPro analysis indicates is trading below Fair Value, has declined nearly 50% year-to-date while maintaining a healthy 7.4% dividend yield. According to a recent filing, Latek sold a total of 155,124 shares of common stock on December 2, 2024. The shares were sold at a weighted average price of $4.37, amounting to approximately $677,891. Following this transaction, Latek owns 509,212 shares directly and holds 53,517 shares of Class A common stock. Additionally, he no longer holds shares in a 401(k) plan after selling 4,908 shares. Despite recent price weakness, InvestingPro data shows the company maintains a GOOD financial health score, with liquid assets exceeding short-term obligations. Get the full analysis and 8 additional key insights with an InvestingPro subscription.
In other recent news, Gray Television has been the subject of revised financial outlooks by both Loop Capital and Benchmark. Loop Capital adjusted its price target for Gray Television downward to $7.00 from $8.00, citing a less robust broadcast TV political advertising climate than initially expected and the company's higher projected leverage. Despite these challenges, Gray Television's management is actively engaging in cost reduction measures and purchasing debt at a discount in the open market.
Benchmark also reduced its price target for Gray Television to $8.00 from $11.00, maintaining a Buy recommendation. This adjustment followed the company's third-quarter results, which were solid but accompanied by a fourth-quarter core and political advertising revenue guidance that fell short of market expectations. Despite these setbacks, Benchmark sees potential upsides for Gray Television, such as the possibility of exceeding expectations with gross and net retransmission consent revenues in 2025.
Furthermore, Gray Media Group reported a significant 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 plans to reduce its total net debt by approximately $500 million in 2024. These are part of the recent developments that Gray Media is undergoing to strengthen its financial standing and competitive edge in the broadcasting sector.
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