On December 21, 2020, Entercom Communications stock sat at $2.13, ending a push to $3 that stalled out earlier in the month.
Some believed this would signal a return to sub-$2 trading, seen from mid-June through October 2020.
The exact opposite happened. Entercom shares are up 194% since just two months ago.
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As of Friday’s Closing Bell, ETM was trading at $6.27, up 5.4% from February 18’s closing value.
It’s the latest gain for a stock that’s been hoping for a turnaround from COVID-19 fueled losses, coupled with investor dissatisfaction over an audio company that, in some ways, has yet to fully turnaround former CBS Radio properties it obtained in a tax-free Reverse Morris Trust merger completed on Nov. 17, 2017.
It can be argued that the two months of solid improvement for Entercom shares are tied to sequential advertising revenue improvements across its radio stations.
But, it is more likely the case that investors like Entercom for its heavy investment in podcasting and in sports and gaming properties.
Entercom executives on Wednesday (2/24) will unveil the company’s Q4 and full-year 2020 earnings, and Q1 2021 is shaping up to be a pivotal one for the company headed by David Field.
Nine days ago, it inked a content agreement with TEGNA-owned Locked On Podcast Network.
Nearly one month ago, it launched the BetQL Audio Network, a move that came after Entercom’s purchase three months ago of sports data and iGaming affiliate platform QL Gaming Group.
Both deals are likely immediately accretive for Entercom, which reported a Q3 2020 loss and lagged revenue estimates, despite strong sequential quarterly revenue improvements.
With a 1-year target estimate of $4.40, analysts may now be revising their figures upward for the owner of such stations as WFAN in New York, the nation’s first and largest Sports Talk brand; “K-Earth 101” in Los Angeles; and WXRT-FM in Chicago — all former CBS Radio stations that remain standouts at the Philadelphia-based company with a large leadership base at 345 Hudson Street in lower Manhattan.
With ETM above $6.15, the company’s stock is at its highest COVID-19 era value.
And, it brings Entercom shares back to where they were in May 2019.
With 75 minutes remaining in Friday’s trading, Entercom’s market cap sat at $845.85 million.
