Meredith Kopit Levien, CEO, President, and Director of New York Times, Sells 26% of Company’s Holding

New York Times CEO Sells $1 Million Worth of Stock, Sparking Concern Among Shareholders

In a recent transaction, Meredith Kopit Levien, the CEO, President, and Director of The New York Times Company (NYSE:NYT), sold a significant amount of stock, raising concerns among shareholders. Levien sold $1.0 million worth of stock at a price of $43.92 per share, reducing their total holding by 26%. While this reduction is not insignificant, it is not the most drastic we’ve seen.

This sale is not the first time Levien has sold New York Times shares this year. In an earlier sale, they sold shares at $40.05 per share, totaling a sale of -$1.2 million. This suggests that Levien wanted to cash in on some of their holdings, even below the current price of $42.58. Typically, when insiders sell below the current price, it can be viewed as discouraging, as it indicates they were content with a lower valuation. However, it’s important to note that sellers may have various reasons for selling, so it’s unclear how they view the stock price.

It’s worth mentioning that the largest single sale by Levien accounted for only 33% of their total holding. Additionally, over the past year, New York Times insiders have not made any purchases of company stock. To gain a better understanding of insider transactions, you can refer to a visual depiction of these transactions over the past 12 months.

For investors who prefer to buy stocks that insiders are buying rather than selling, there is a list of companies available that have seen insider buying.

In terms of insider ownership, it is crucial to assess how many shares are held by company insiders. Higher insider ownership usually indicates that insiders have a greater incentive to work towards the long-term success of the company. Currently, insiders own 0.6% of New York Times shares, valued at approximately $44 million. While higher levels of insider ownership have been observed in other companies, this ownership level suggests a level of alignment between insiders and other shareholders.

Considering the recent insider selling and the absence of insider purchases, caution is advised when considering investing in New York Times. It is important to thoroughly evaluate the risks associated with the stock before making any investment decisions.

While insider ownership and transactions provide valuable insights, it is also essential to consider the risks facing the company. In the case of New York Times, there is one warning sign that investors should be aware of. For a more in-depth analysis, a list of interesting companies with high return on equity and low debt is available.

Please note that for the purposes of this article, insiders refer to individuals who report their transactions to the relevant regulatory body. Open market transactions and private dispositions are considered, but derivative transactions are not included.

The New York Times Company, along with its subsidiaries, provides news and information to readers and viewers across various platforms worldwide. As of now, the stock is trading at 28.7% below the estimated fair value, and earnings are projected to grow at a rate of 26.73% per year. However, significant insider selling over the past three months raises concerns.

If you have any feedback or concerns about the content of this article, please reach out to us directly or email the editorial team at editorial-team@simplywallst.com. It’s important to note that this article by Simply Wall St is of a general nature and should not be considered financial advice. The analysis is based on historical data and analyst forecasts using an unbiased methodology. Individual objectives and financial situations are not taken into account. The aim is to provide long-term focused analysis driven by fundamental data.

Original Story at simplywall.st – 2023-08-17 10:21:32