A recent filing with the Securities and Exchange Commission revealed that an insider at BuzzFeed, Inc. (NASDAQ:BZFD), specifically a member of the company's 10% ownership group, has sold a significant number of shares. The transaction involved the sale of 104,000 shares of Class A Common Stock for a total of approximately $296,067.
The sale took place on May 31, 2024, with the reported price per share being $2.8468. However, the shares were actually sold at prices ranging from $2.76 to $2.93, as per the weighted average sale price disclosed in the filing. This indicates that the insider capitalized on a momentary upswing in stock value within that price range.
The insider, identified as Johnson BF, LLC, of which John S. Johnson III is the sole member, has retained a substantial number of shares following the transaction. The ownership now stands at 1,091,195 shares of BuzzFeed's Class A Common Stock directly held by Johnson BF, LLC.
This move comes in the wake of a 1-for-4 reverse stock split executed by BuzzFeed on May 6, 2024, which had an impact on the number of shares held by all shareholders, including the reporting person. Adjustments were also made to the reporting person's outstanding equity awards to reflect this reverse stock split.
The filing also contains a statement from the insider disclaiming beneficial ownership of any shares owned by another party, specifically referencing a potential "group" as defined by Section 13(d)(3) of the Securities Exchange Act of 1934, which includes Jonah Peretti and Jonah Peretti, LLC.
Investors and followers of BuzzFeed, Inc. will be keeping an eye on insider transactions such as this one, as they may offer insights into the company's financial maneuvers and the confidence level of its top stakeholders.
InvestingPro Insights
BuzzFeed, Inc.'s (NASDAQ:BZFD) recent insider trading activity comes at a time when the company's financial metrics and market performance reflect a complex picture. Here are some key insights from InvestingPro that may shed light on the situation:
InvestingPro Data shows BuzzFeed's market capitalization at a modest $98.84 million, which is relatively small in the media industry landscape. Despite the company's significant debt burden, as indicated by one of the InvestingPro Tips, analysts are anticipating sales growth in the current year. This suggests potential optimism about BuzzFeed's revenue-generating capabilities.
The stock has experienced substantial volatility, with a notable price total return of 169.5% year-to-date as of 2024, yet the one-year price total return sits at a slight decline of -1.97%. This volatility is echoed by another InvestingPro Tip pointing out the stock's sharp movements, which could be a factor in the insider's decision to sell shares.
Additionally, the company's P/E ratio stands at -1.1, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -1.98, indicating that investors are not valuing the company based on earnings at this time. This could be due to BuzzFeed not being profitable over the last twelve months, a situation that analysts do not anticipate will change this year.
For readers interested in a deeper analysis, InvestingPro offers additional tips on BuzzFeed, Inc. that could provide further context to the company's financial health and stock performance. By subscribing to InvestingPro, users can access these valuable insights and, by using the coupon code PRONEWS24, they can enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 13 additional InvestingPro Tips available for BuzzFeed, Inc. at https://www.investing.com/pro/BZFD, which could be especially useful for investors monitoring the company's progress and making informed decisions.
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