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Insider Accumulates Significant Stake in Media M&A Target

by | Aug 15, 2021

Lions Gate (LGF.B) name that has seen notable accumulation in stock from director Gordon Crawford this year with over 600,000 shares bought since August 2020 including 75,000 shares on 8/10 for $12. Crawford has been on the board of the Lionsgate since 2013 but significantly accelerated his holdings over the last year. LGF is up 12% for the year but down over 30% from the highs and back near support from February and May. The $2.76B company trades 28X earnings, 0.84X sales, and 10.55X cash. LGF has been active this year acquiring more than 400 titles through three different deals as they look to stockpile valuable content. They continue to invest in movies across a number of platforms – theatrical, streaming, and multiplatform – while Starz saw 13 new series picked up. Analysts have an average target for shares of $17 with a Street High $23. Cowen seeing the company as a prime M&A target, especially as velocity of deals have increased this year. RBC positive in May citing its operating momentum and content investment while Starz subscriber momentum remains solid. Short interest is 2.26% and the lowest since late 2019, down from around 5% in January. Hedge fund ownership rose 4% last quarter. Mangrove Partners, Masters Capital, and Fort Baker Capital buyers of stock. Nomura also added 1.59M shares, interesting as they are often a buyer of swaps for activists.

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