TheStreet (TST, Financial) Directors Lawrence S. Kramer and Stephen Zacharias purchased a combined total of 50,000 shares in the company in early November, according to the Securities and Exchange Commission.
Kramer purchased 25,000 shares on Nov. 3 in one transaction for 98.52 cents per share. Kramer owns 400,000 shares in the company. Zacharias purchased 25,000 shares of TheStreet in two separate transactions on two separate dates. He purchased 7,000 shares for 94 cents per share on Nov. 4. He bought an additional 18,000 shares for 94.6 cents per share on Nov. 7. Zacharias owns 117,376 total shares.
TheSteet is a digital media company that was founded in 1996. The company focuses on subscriptions and advertisers through a range of online, social media, tablet and mobile channels. Its mission is to provide its customers with ideas from the world of investing to enable and enhance their knowledge providing them the opportunity to increase their overall wealth.
TheStreet has a market cap of $36.63 million, an enterprise value of $9.87 million, a price-book (P/B) ratio of 0.58, a price-sales (P/S) ratio of 0.48, a quick ratio of 0.97 and a dividend yield of 2.69.
TheStreet generates the majority of its income from subscription services. In 2015, the company's subscription services generated 82% of its total revenue, compared to 79% in 2014 and 80% in 2013. Over the previous trailing 12 months, TheStreet has seen a $3.12 million decline in its reported revenue and a $1.45 million decline in its reported gross profit.
According to GuruFocus, TheStreet has a 6 of 10 financial strength rating with no debt. It has a Beneish M-Score of -2.73 indicating that the company is not a manipulator of its financial statements. The company also has a 4 of 10 profitability and growth rating with an operating margin of -4.79%, a net margin of -6.89%, an ROE of -7.80%, an ROA of -4.42%, revenue growth (three years) of 7.80% and EPS growth (three years) of -47.90%.
Kramer and Zacharias may have decided to purchase the shares because the company is trading at its 10-year price low. It's also possible the insiders were speculating that the recent election and its results could boost TheStreet's viewership and subscribers. People from around the world have been following the election, and both Kramer and Zacharias knew prior to Donald Trump's victory that America was going to have a new president. The new presidency has the potential to increase the number of TheStreet's subscribers in the future which could also boost the company's market price.
Disclosure:Â Author does not own any shares in this company.
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