Gannet Leaders Can't Agree On Stock's Potential
Although Gannett Co., Inc. (NYSE:GCI) posted lower second-quarter net income and revenue, the company's more serious problem may lie in the discrepancy between the amount of insider buys and insider selling that is going on behind closed doors.
According to The Associated Press, Gannett reported on Monday a 21 percent fall in net income, but its stock still managed to rise due to the huge media company's earnings excluding one-time expenses that beat analysts' forecasts. Gannett brought in earnings of $119.9 million, or 51 cents per share, in the second quarter of 2012. This is compared with $151.5 million, or 62 cents per share in the same period in 2011.
The Virginia-based company, which owns USA Today and 81 other online publications, earned 56 cents per share last quarter without one-time charges stemming from an early retirement plan, one pension settlement and similar problems.
This mixed data is only convoluted further by the recent insider buying habits of company officials. In the last three months, officials have sold $595,110 in shares value between $13.13 and $13.25 each. However, significant buying is also going on, with $540,540 in insider buys in the last three months.
What do you think about the different investment decisions?
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