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Monica Wolfe
Monica Wolfe
Articles (757) 

Large Insider Sells Reported in the Entertainment Industry

May 10, 2013 | About:

This week we saw an increase in insider sells coming from the entertainment industry. The following three companies represent the largest sells coming from two or more of their corporate executives.

1. Virgin Media (VMED)

As the acquisition of Virgin Media is currently underway, the company reported five large insider sells coming from corporate executives. The five insiders consist of Director John Rigsby, COO Andrew Barron, CEO Neil Berkett, Director Doreen Toben and Chief CT&N Officer Paul Buttery.

Led by CEO Neil Berkett who sold the remaining 365,620 of his shares, the five insiders sold a combined total of 560,334 shares in the price range of $48.87 to $49.84. The corporate executives raked in a massive total of $27,823,325 on these sells.

These sells come as Virgin Media is currently in the midst of being acquired by Liberty Global (LBTYA).

CEO Neil Berkett will be replaced by Tom Mockridge in June as Liberty Global’s £15 billion takeover of Virgin Media is finalized.

Virgin Media is a part of the entertainment and communications business. It is a quad-play provider of broadband internet, television, mobile phone and fixed line phone services that offer a variety of entertainment and communications services to residential and commercial customers throughout the U.K.

Despite the takeover of the company, Virgin Media will maintain its brand and the merged company will have headquarters in the UK, Amsterdam and the U.S. With this acquisition Liberty Global/Virgin Media will be the largest cable and phone services provider in the world.

The GuruFocus analysis warns that the dividend yield for the company is close to a five-year low, that the per share revenue growth has slowed down in the past year and that the P/S ratio is close to a five-year high of 2.6.


VMED data by GuruFocus.com

In April, Guru Daniel Loeb commented on Liberty Global and its takeover of Virgin Media. To read what he had to say about the acquisition and merger of these two companies, click here.

There are currently nine gurus that hold a stake in Virgin Media with Mario Gabelli and Jean-Marie Eveillard buying into the stock this most recent quarter.

With its shares up 0.12%, VMED trades at $50.89.

2. Time Warner (TWC)

This week two insiders made large sells of their stake in Time Warner.

Executive VP and COO of Residential Services William Goetz sold 21,563 shares at $96.11 per share. Goetz brought in $2,072,420 with this sell. He still holds on to at least 9,904 shares of company stock.

President and COO Robert Marcus sold 68,505 shares this week. The shares traded at an average price of $95.59. This raked in $6,548,393 for Marcus. He still holds on to 47,179 shares of Time Warner stock.

These sells came as the price of the company is near a three-year high of $100.60.

The GuruFocus analysis on Time Warner reports that the company has issued $3.5 billion of debt in the past three years and that the company’s P/S ratio is close to a three-year high of 1.51.

Time Warner is a cable operator in the U.S. with technologically advanced, well-clustered systems located mainly in five geographic areas: New York, the Carolinas, Ohio, Southern California and Texas.

The company recently announced senior management changes that include current CFO, Irene Esteves, leaving the company and Arthur Minson moving into the CFO position.

The company recently released its first quarter financials which highlighted:

  • · The operating income increase of 1.7% from the first quarter of 2012 to $1.1 billion.
  • · The net income attributable to shareholders is at $401 million
  • · The FCF decreased by 7.9% to $661 million.
  • · The revenue increased 6.6% from first quarter 2012 to $5.5 billion.
The company has also increased their dividend yield to $0.65 per share as of Jan. 31, 2013. The company has increased its quarterly dividend annually since 2010.


TWC data by GuruFocus.com.

There are currently 13 gurus that hold shares of Time Warner.

With its shares up 0.1%, TWC trades at $98.04.

3. Netflix (NFLX)

This past week three insiders have sold a total of 105,201 shares of the company’s stock. These shares traded at $209.63 each. Totally the insiders brought in $22,053,285 with these sells.

These sells came as the price of the stock is sitting at a 52-week high.

Netflix is a provider of subscription service streaming movies and TV episodes over the internet and sending DVDs by mail. According to Alexa.com, Netflix.com currently ranks No. 100 globally and No. 22 in the U.S. Over the past few months page views per user has declined by 5.5%, time-on-site has declined by 5% and the bounce rate has increased by 1%.

The company recently reported its first quarter earnings which highlighted:

  • · International membership growth of 1 million new members
  • · Continued releases of TV shows that are for Netflix members only
  • · Net income of $3 million
  • · Free Cash Flow of $-42 million
GuruFocus reports several warning signs for the company:

  • · The per share revenue has slowed in the past year.
  • · The gross margin has been in a long-term decline of about 2.6% per year.
  • · The operating margin has been in a five-year decline of about 19.3% per year.
  • · The P/S ratio is close to a one-year high of 3.39.

Netflix’s stock is quite expensive coming in at 530 times its earnings.

There are currently nine gurus that hold a stake in Netflix.

With its shares up 0.69% today, Netflix trades at $217.90.

To view all insiders making sells of their company’s stock, click here.
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