Insider Activity Report: Sphere Entertainment (SPHR)

James Dolan, CEO and Chairman at Sphere Entertainment (SPHR), recently bought 76,139 shares. The buy increased his holdings by 17 percent, and came to a total cost of $3.1 million.

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  • The buy came two days after Dolan made a  59,374 share buy, at a cost of $2.4 million. That makes for $5.5 million in buys in the past few weeks. Otherwise, the company CFO sold about $200,000 of shares earlier last month.

    Overall, Sphere Entertainment insiders own about 4.4 percent of shares.

    The Las Vegas entertainment venue is up 58 percent over the past year. Much of that gain has been since Sphere completed construction and opened its doors to customers.

    While not yet profitable, revenues are up 97 percent over the past year, and Sphere operates with a hefty 51 percent profit margin.

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  • Action to take: While there’s some buzz as a new entertainment venue, Sphere’s unique design offers fantastic seating for performances and state-of-the-art shows unavailable anywhere else.

    It’s likely that the company can become a massive cash cow in the years ahead, and investors may like a small position here as a speculative growth play. In time, shares may even pay a dividend.

    For traders, the June $55 calls, last trading for about $2.60, could see mid-to-high double-digit returns on a further rally in shares in the months ahead.


    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.

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