Check Out the Insider Trading of Viacom Inc. (VIAB)

Will Viacom Inc. (NASDAQ:VIAB) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed lower on 08 February. The shares dropped -0.19 points or -0.65 percent at $29.19 with a light trade volume of 2.948 million shares. After opening the session at $29.23, the shares went as high as $29.52 and as low as $28.77, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $12.1 billion and now has 413.55 million shares outstanding. Viacom Inc. (VIAB) stock has gained 0.66 percent of market value in 21 trading days.

VIAB stock has a trailing 3-year beta of 1.5, 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 $3.54 a share in the trailing twelve months. The stock’s value has surged 13.58 percent year to date (YTD) against a decline of -4.33 percent in 12 month’s time. The company’s shares still trade -15.59 percent away from its 1-year high of $34.58 and 25.23 percent up from 52-week low of $23.31. The average consensus rating on the company is 2.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Viacom Inc. (VIAB) will probably climb 19.08 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $44 price as 12-month high target. This represents a whopping 50.74 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $34, which represents a return potential of 16.48 percent when compared to the closing price of the stock of $29.19 on Friday, February 08. The lowest price target for the stock is $27 — slightly more than -7.5 percent from VIAB’s current share price.

History has shown that shares in Viacom Inc. have gone up on 21 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings.

Let’s take a look at some insider activity at Viacom Inc. (NASDAQ:VIAB) and see the pattern. The earliest insider trade took place on 05/12/2017. Davis Wade gathered a total of 28.71 thousand shares of company at average share price of $34.56. The total for the purchase was set at $992.22 thousand. After this transaction, the EVP, CFO account balance stood at 42.42 thousand shares. The stock lost -15.54 percent since that insider purchase. On 03/17/2017, Lea Dede, EVP, Global Government Affairs, sold 4 thousand shares at a price per share of $43.63. This removed 174.52 thousand shares from the insider’s fortune and the stock saw a -33.1 percent retreat in value since the news became public. This transaction left 22.63 thousand shares in the EVP, Global Government Affairs account.

On 03/09/2017, SVP, Controller Gill Charest Katherine performed a sale transaction worth $133.26 thousand. This sale at $44.42 each has eliminated 3 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -34.29 percent decrease since the transaction was reported. The insider now is left with 7.2 thousand shares remaining in the account. Mills Scott, who performs the EVP and CAO job, sold 7.28 thousand shares for $322.13 thousand. The disposal occurred on 02/15/2017 was priced at $44.23 per share. The share price plunged -34 percent since the reporting date. Mills Scott now left with a stake of 14.11 thousand VIAB stock worth $411.84 thousand after the insider selling.

The stock is currently hovering around the first support level of $28.8. Below this, the next support is placed in the zone of $28.41. Till the time, the VIAB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 49.34 on daily chart, which may remain a cause for concern. If the price breaks below $28.41 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $29.55 mark may result into a pull-back move towards $29.91 level.

Shares of Viacom Inc. (VIAB) are trading at a P/E ratio of 8.25 times earnings reported for the past 12 months. The industry VIAB operates in has an average P/E of 36.13. Its P/E ratio went as low as 5.96X and as high as 14.16 over the 5-year span.Further, it is sporting a 0.93 on the Price-to-Sales ratio. Compare this with the industry average P/S of 76505.69. 46 percent is the gross profit margin for Viacom Inc. and operating margin sits at 19.1 percent. Along with this, the net profit margin is 11.6 percent.