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Is BuzzFeed Stock Back on the Horse?
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Is BuzzFeed Stock Back on the Horse?

Story Highlights

Fundamental strength and growth opportunities in the market served, along with trading activities of corporate insiders, can reveal a lot about a company. It will be interesting to see how insider trading activities are creating a buzz for BZFD stock.

UPDATED: June 9, 2022: Shares of digital media company BuzzFeed, Inc. (NASDAQ: BZFD) declined 7% on Wednesday and gained 2.3% in Thursday’s pre-market trading session, at the time of writing.

Though the price movements represent a minor change in the dollar value of the stock, the company has grabbed many eyeballs, especially when BZFD stock tanked 41% on Monday.

The recent price movements can be attributed to the trading activities of BZFD’s corporate insiders on Tuesday and Wednesday. The company’s top officials recently gained the right to actively trade in BZFD stock after the end of the customary lock-up period, post its IPO in December 2021.

Per the data provided by TipRanks’ Insiders Trading tool, two informative buy transactions were conducted by the company’s Directors on Wednesday. Coleman Gregory bought 75 thousand shares of BZFD for $207 thousand, while Adam Rothstein purchased 100 thousand shares for $232 thousand.

On Tuesday, uninformative buy transactions, of approximately 803.9 thousand shares, were conducted by nine top officials of BuzzFeed. The top officials included the company’s Directors, CLO, CFO, and Publisher.

Of the total, roughly 159.4 thousand shares were bought for $216.1 thousand by Powell Rhonda, the company’s CLO, and approximately 179.3 thousand shares were purchased by CFO DellaFortuna Felicia for $253.5 thousand. Also, the company’s Publisher, Nguyen Phuong Dao, purchased 346.9 thousand shares for $594.8 thousand.

A pictorial representation of the above-mentioned transactions is provided below:

Stock Rating

On TipRanks, BuzzFeed has a Moderate Buy consensus rating based on one Buy and one Hold. BZFD’s price target of $4.75 suggests 119.91% upside potential from current levels. Shares of this $292.6-million company have plunged 59.2% so far this year.

Risk Analysis

According to TipRanks, BuzzFeed is exposed to risks that directly or indirectly impact its investment appeal and ease of doing business.

The company’s main risk category is Finance & Corporate, which accounts for 28 out of 52 risks identified for the stock. A further breakdown of this category reveals that the company’s share price & shareholder rights are exposed to 14 risks alone.

Conclusion

Despite multiple risks, BuzzFeed has a lot to offer. A huge addressable market in the digital media space, top-line strength from the acquisition of Complex Networks, and corporate insiders’ confidence in its abilities are expected to enhance its investment appeal.

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