In a recent transaction, Brian D. Zook, the Chief Accounting Officer of Liberty Latin America Ltd. (NASDAQ:LILA), sold a significant number of company shares. The executive parted with 26,197 shares, totaling over $250,000 in value. The sales took place on August 20, 2024, with the prices of Class A and Class C common shares ranging from $9.4500 to $9.6863.
Zook's sale of 6,010 Class A Common Shares was executed at an average price of $9.5444, while the 20,187 Class C Common Shares were sold at an average of $9.5892. Following these transactions, Zook's direct holdings in Class A and Class C common shares have decreased to 28,788 and 51,488, respectively.
The prices for the Class A shares ranged from $9.4500 to $9.6200, as indicated in the footnotes of the report. Similarly, the Class C shares were sold at prices between $9.5100 and $9.6863. The footnotes also mention that Zook is willing to provide further details about the number of shares sold at each separate price if requested by the Securities and Exchange Commission, the issuer, or a security holder of the issuer.
Investors may also note that Zook has indirect holdings through an IRA and a 401(k) Plan. His IRA holds 93 Class A and 1,312 Class C common shares, while his 401(k) Plan includes an additional 13,628 Class C common shares. As of the reporting date, the 401(k) Plan had received a contribution of 3,053 shares from the issuer.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, which is a requirement for company insiders to report changes in company stock ownership. Liberty Latin America Ltd. operates in the telecommunications industry, providing cable and other pay television services.
In other recent news, Liberty Latin America reported strong performance in its second quarter 2024 investor call. The telecommunications company added 62,000 subscribers in the first half of the year, excluding Puerto Rico, and reported an adjusted OIBDA of $763 million, with substantial growth in Panama and Costa Rica. Despite facing challenges in Puerto Rico, the company plans to return to growth through strategic combinations with Millicom and investments in fiber and 5G.
Liberty Latin America also announced its equity repurchase program and anticipates positive revenue growth across its portfolio in 2025. The company has made significant operational combinations and acquisitions, including with Tigo in Costa Rica and DISH in Puerto Rico. These developments are part of Liberty Latin America's strategy to drive fixed and mobile volumes while recovering from Hurricane Beryl.
In terms of future expectations, the company aims to reach $45 million of monthly adjusted OIBDA in the latter half of the second half of 2024. However, it also reported a bad debt of $12 million due to billing and collection issues, which is expected to normalize by year-end. Despite these challenges, Liberty Latin America remains focused on leveraging growth opportunities in Panama, Costa Rica, and the Caribbean.
InvestingPro Insights
Following the recent insider selling activity at Liberty Latin America Ltd. (NASDAQ:LILA), investors may be keen to understand the company's broader financial context. According to InvestingPro data, Liberty Latin America boasts a substantial market capitalization of $7.04 billion. Despite experiencing a slight revenue decline of 2.06% in the last twelve months as of Q2 2024, the company maintains an impressive gross profit margin of 77.26%, highlighting its ability to retain a significant portion of its sales as gross profit.
One of the InvestingPro Tips suggests that Liberty Latin America's management has been actively engaging in share buybacks, which can often be interpreted as a signal of confidence in the company's future prospects. Additionally, while the company was not profitable over the last twelve months, analysts predict a turnaround with profitability expected this year. This forward-looking optimism is reflected in the stock's robust price performance, with a notable 45.6% increase over the past six months, as of the same period in 2024.
Investors considering Liberty Latin America as a potential addition to their portfolio should note that the company does not distribute dividends, which could influence the investment strategy for income-focused portfolios. For those seeking a deeper dive into the company's financials and future outlook, InvestingPro offers additional tips and metrics to aid in making well-informed investment decisions. There are currently 5 more InvestingPro Tips available, which can be accessed through the InvestingPro platform.
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