PodcastOne, Inc. (NASDAQ:PODC) director D. Jonathan Merriman has recently increased his stake in the company, purchasing 28,000 shares of common stock at an average price of $1.56, totaling $43,680. The transaction, dated July 16, 2024, was disclosed in a filing with the U.S. Securities and Exchange Commission.
The shares were acquired in multiple transactions at prices ranging from $1.54 to $1.59. Following this purchase, Merriman's directly held shares in PodcastOne, Inc. amount to 126,539.
Additionally, it has been noted that Merriman holds indirect ownership through the D. Jonathan and Odile Merriman Family Trust, which possesses 163,079 shares. While he has shared voting and dispositive power over these shares as a trustee, Merriman disclaims beneficial ownership except for his pecuniary interest.
Investors often monitor insider transactions as they can provide insights into the confidence that company executives and directors have in the firm's future prospects. Merriman's recent investment suggests a positive outlook on the company's value.
PodcastOne, Inc., headquartered in Beverly Hills, California, operates in the computer programming and data processing industry. The company, formerly known as Courtside Group, Inc., has seen its share of changes, including a name change in July 2022.
This latest financial move by one of PodcastOne's directors has caught the attention of market watchers, signaling a potential vote of confidence in the company's trajectory.
In other recent news, PodcastOne, a leading podcast platform operating under LiveOne, has announced several significant developments. The company has expanded its Board of Directors with the appointment of Jon Merriman, a seasoned Wall Street figure known for identifying high-growth investment opportunities. Merriman's addition is expected to contribute significantly to PodcastOne's strategic initiatives as the company intensifies efforts to scale business operations and enhance its visibility within the financial and investment communities.
In terms of financial performance, PodcastOne forecasts strong growth with revenue expected to reach between $50M and $55M for the fiscal year ending March 31, 2025, following a successful year with $43.3M (NYSE:MMM) in revenue. The company has also entered into a substantial business-to-business partnership with a Fortune 250 company, expected to contribute over $20M in annual revenues.
Furthermore, the company has reported a 25% increase in revenue from the previous year and an improvement in adjusted EBITDA. PodcastOne has added 30 new podcasts in the fiscal year 2024, generating over 350 hours of content weekly and attracting more than 10 million unique monthly listeners. These are among the recent developments that highlight the company's growth trajectory and strategic expansion efforts.
InvestingPro Insights
As PodcastOne, Inc. (NASDAQ:PODC) sees increased interest from its director D. Jonathan Merriman, the market is also keeping a keen eye on the company's financial health and future potential. With a market capitalization of $38.07 million, the company's financial stance is under scrutiny. According to the latest data from InvestingPro, PodcastOne holds more cash than debt on its balance sheet, indicating a position of liquidity that may reassure investors about the company's ability to manage its finances in the short term.
Despite not being profitable over the last twelve months, PodcastOne's significant return over the last week of nearly 25% cannot be overlooked. This kind of volatility may attract investors looking for short-term gains, although the price has fallen approximately 63.55% over the past year, reflecting a longer-term downtrend. Analysts predict that the company will be profitable this year, which could be a turning point for PodcastOne if this forecast comes to fruition.
Additionally, an InvestingPro Tip highlights that PodcastOne has a high shareholder yield, which is a metric combining dividends, share repurchases, and debt reduction. While the company does not pay a dividend, the other factors contributing to shareholder yield may be of interest to potential investors. For those who want to delve deeper into the company's prospects, there are additional InvestingPro Tips available, which can be accessed by visiting the InvestingPro platform using the company's ticker: https://www.investing.com/pro/PODC. For a more comprehensive analysis, readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
It's worth noting that PodcastOne's revenue has grown by nearly 25% over the last twelve months, which could be indicative of underlying business strength. However, with weak gross profit margins of 13.8%, the company will need to focus on improving its profitability to sustain this growth. For those interested in exploring further, there are a total of 10 InvestingPro Tips available, providing a more nuanced understanding of PodcastOne's financial position and market potential.
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