Live Nation Entertainment, Inc. (LYV): Is This Insider Trading a Scary Sign?

After opening Thursday at around $62.97, Live Nation Entertainment, Inc. (NYSE:LYV) stock surged to as high as $63.89. It then made a downturn, dipping as low as $62.81. Although the stock bounced a bit into the close, it finished the day at $63.56, up 0.88 points or 1.4 percent on the day. The final volume for the day was 2.068 million, which was more than its average volume. The firm is left with a market cap of $13.4 billion and now has 210.86 million shares outstanding. Live Nation Entertainment, Inc. (LYV) stock has gained 15.42 percent of market value in 21 trading days.

LYV stock has a trailing 3-year beta of 1.12, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.12 a share in the trailing twelve months. The stock’s value has surged 29.06 percent year to date (YTD) against a rise of 40.78 percent in 12 month’s time. The company’s shares still trade 0.24 percent away from its 1-year high of $63.41 and 76.85 percent up from 52-week low of $35.94. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Live Nation Entertainment, Inc. (LYV) will probably climb -3.24 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $65-month high price target. This represents a whopping 2.27 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $62, which represents a return potential of -2.45 percent when compared to the closing price of the stock of $63.56 on Thursday, March 14. The lowest price target for the stock is $59 — slightly more than -7.17 percent from LYV’s current share price.

History has shown that shares in Live Nation Entertainment, Inc. have gone up on 23 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. Investors will get their next glimpse of LYV’s Q1 earnings on May 06. Analysts are forecasting revenue to climb 6.9 percent to $1.59B in the fiscal first quarter, while earnings are seen soaring by nearly 25 percent to -$0.3 per share. It earned -$0.8 per share, worse than the -$0.74, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.6B, better than the $2.38B analysts expected. Earnings are estimated to increase by 88.6 percent this year, 90.02 percent next year and continue to increase by 0 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $62.95. Below this, the next support is placed in the zone of $62.34. Till the time, the LYV stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 79.55 on daily chart, which may remain a cause for concern. If the price breaks below $62.34 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $64.03 mark may result into a pull-back move towards $64.5 level.

Shares of Live Nation Entertainment, Inc. (LYV) are trading at a P/E ratio of 6577.57 times earnings reported for the past 12 months. The industry LYV operates in has an average P/E of 100.66. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span.Further, it is sporting a 1.24 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.26. 26.1 percent is the gross profit margin for Live Nation Entertainment, Inc. and operating margin sits at 2.5 percent. Along with this, the net profit margin is -0.2 percent.