Frederic Salerno, a director at Madison Square Garden Entertainment Corp (MSGE), recently bought 5,000 shares. The stake cost $206,250, and increased his position in the stock by 40%.
This marks the first insider buy since June 2023, when a major holder bought 422,580 shares for about $10 million. Otherwise, company insiders, mostly the CEO, have been sellers of shares over the past two years, usually selling multiple millions of dollar’s worth of shares per transaction.
Overall, MSGE insiders own 3.2% of shares.
The live entertainment venue operator is up 28% over the past year, slightly outperforming the overall stock market.
There’s likely still more room for shares to run higher, as earnings are also trending higher, up 26% in the past year. Shares also trade at about 13 times earnings, a reasonable discount to the overall market right now.
Action to take: With consumers still spending on events and other activities, shares will likely keep trending higher over time.
Given the momentum higher in shares right now, investors may want to buy a small stake here, and use any market pullback to add to that position. Currently, MSGE does not pay a dividend.
For traders, the January 2025 $45 calls, last trading for about $2.55, could see high double-digit returns on further upside in shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
