It’s been said by many long-term investors that the best time to buy is when a company’s stock is viewed as largely undervalued, and there’s much upside in the forecast.
That’s likely what is driving one of Saga Communications’ largest institutional shareholders to snatch up more stock at bargain values, as the radio broadcasting company struggles to bounce back from an all-time low.
TowerView LLC, led by well-known investor Daniel R. Tisch, on Wednesday made its second big purchase in two days of Saga’s Class A common stock.
According to a SEC filing, Tisch on May 22 agreed to purchase 3,605 shares at a strike price of $28.0766.
Like TowerView’s May 21 Saga stock snag, the deal came at a discount to the market price, which was down 2 cents to $28.69 at the Opening Bell on Thursday but up 59 cents to $29.30 as of 1pm Eastern.
TowerView LLC is a 10% owner, as listed by the SEC, of Saga.
As of March 30, 2019, it holds 23.1% of the total shares issued by Saga, followed by T. Rowe Price and Associates with 13.2%; Royce & Associates at 11.25%; and FMR LLC at 10.1%.
Now, Saga is set to widen its total shares in the radio broadcasting company to 1,170,000, thanks to this deal and the May 21 acquisition of 2,754 Class A shares at a strike price of $28.3487.
The May 21 deal was a discount to Saga’s closing price on that day of $28.66.
Nearly 92% of all Saga shares are held by institutions, and whether Royce, FMR and/or T. Rowe Price follow Tisch’s lead is unknown. But, a dip in intra-day trading on Wednesday $28 could prove inticing, as it put Saga at a new trading low.
As RBR+TVBR has reported, investor sentiment may be lukewarm on Saga at this time, following revelations from CEO Ed Christian that station group sales leaders had failed to follow through on “necessary changes” to Saga’s sales strategy and tactics.
