Entravision Shares Surpass 200-Day MA at $3.04 as Short Interest Climbs 29.4%
Entravision Communications saw short interest increase 29.4% to 717,379 shares as of December 15, raising its days-to-cover ratio to 1.8 days (0.9% of shares short sold). Shares crossed above their 200-day moving average of $2.50 on Monday, trading up to $3.04 on volume of 191,742 shares, even as Weiss Ratings upheld a “sell” rating.
1. Short Interest Surges in December
Entravision Communications saw a 29.4% increase in short interest during December, with the total number of shares sold short rising to 717,379 as of December 15th, up from 554,566 on November 30th. Given an average daily trading volume of 400,857 shares, the days-to-cover ratio stands at 1.8, and shorted shares now represent 0.9% of the company’s total float. This uptick in bearish positioning could signal growing skepticism among hedge funds and other market participants regarding near-term operational performance or sector dynamics.
2. Significant Insider Selling Reduces Executive Stakes
Chief Operating Officer Liberman A. Jeffery sold 85,108 shares on December 10th in a transaction that reduced his ownership by 40.25%, leaving him with 126,316 shares. Major shareholder Alexandra Seros sold 157,817 shares on November 6th, representing a 1.39% reduction in her holding and leaving her with over 11.1 million shares. Collectively, insiders disposed of 920,000 shares during the last quarter, valued at approximately $2.66 million, bringing total insider ownership down to 8.54% of outstanding shares.
3. Institutional Investors Adjust Positions
During recent quarters, American Century Companies increased its stake by 10.7%, adding 984,510 shares to reach 10.2 million, while Corsair Capital Management more than quadrupled its holding to 100,985 shares. Nuveen LLC and R Squared Ltd initiated new positions valued at roughly $366,000 and $44,000, respectively. Goldman Sachs added 73,103 shares in Q1 to reach 595,685 shares, and overall 69.46% of Entravision’s shares are held by institutions, indicating continued confidence in the company’s long-term Hispanic media strategy despite short-term volatility.
4. Dividend Yield Attractive, Analysts Maintain Sell Rating
Entravision declared a quarterly dividend of $0.05 per share, representing a 6.8% annualized yield and a payout ratio of -15.38% given the company’s recent net losses. Despite the high yield, Weiss Ratings reiterated a Sell (d) rating, and MarketBeat reports the consensus analyst recommendation remains Sell. Investors face a trade-off between the income opportunity and the challenges reflected in negative margins, elevated leverage, and ongoing short interest pressure.