Gate City Capital Management, LLC, a significant shareholder in Saga Communications Inc. (NASDAQ:SGA), has acquired a substantial number of shares in the company. According to a recent SEC filing, Gate City purchased 240,609 shares of Saga Communications' Class A common stock on December 31, 2024. The shares were bought at a weighted average price of approximately $11.25 per share, amounting to a total transaction value of around $2.7 million. The transaction comes as InvestingPro data shows the company trading at an attractive Price/Book ratio of 0.44, with analysis indicating the stock may be undervalued at current levels.
Following this purchase, Gate City Capital Management now holds 863,845 shares, reflecting its continued investment interest in the radio broadcasting company. The transaction was executed under the investment control of Gate City, with Michael Melby serving as the Managing Member. With a current ratio of 2.64 and a significant dividend yield of 30.9%, InvestingPro analysis reveals 8 additional key insights about Saga Communications' financial health and growth potential, available in the comprehensive Pro Research Report.
In other recent news, Saga Communications reported a decrease in net revenue by 3.5% to $28.1 million in the third quarter of 2024, with net income standing at $1.3 million or $0.20 per diluted share. Despite these results, the media company experienced a rise in political revenue and is shifting its strategy towards "blended advertising," combining radio and digital advertising. However, the company anticipates a weaker performance in the fourth quarter with expected low to mid-single-digit declines. The recent developments also include the strategic termination of a non-profitable digital services partnership, which may impact future revenue comparisons. Operating expenses for Saga Communications are projected to rise by 3% to 5% for the year due to investments and inflationary pressures. Additionally, the company declared a quarterly cash dividend of $0.25 per share, payable on December 13, 2024, to shareholders of record as of November 25, 2024. This latest distribution continues Saga's practice of returning value to shareholders.
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