Shares of fuboTV (NYSE:FUBO) stock are down over 80% year-to-date (YTD). The company’s first-quarter earnings on May 5 didn’t help, either; FUBO stock plunged roughly 20% on the results. For the period, revenue came in at $242 million, just missing analyst estimates of $243 million. Meanwhile, earnings per share (EPS) tallied in at a loss of 89 cents. That fell short of the estimated 64-cent loss. However, guidance for 2022 is what really hurt the company.
For 2022, fuboTV expects North American revenue between $1.02 billion and $1.03 billion. Previously, the company had issued 2022 revenue guidance between $1.08 billion and $1.09 billion. Meanwhile, the streaming platform expects between 1.465 million and 1.485 million subscribers for the year. That figure was also lower than previous guidance of between 1.5 million and 1.51 million.
Still, despite the lowered revenue and subscriber guidance, two of the company’s executives reported picking up FUBO stock yesterday, four days after the earnings release.
CEO David Gandler Buys FUBO Stock
On May 9, CEO David Gandler reported purchasing 46,000 shares at an average price of about $2.98 per share. After the purchase, Gandler directly owns 1.32 million shares of the company. The CEO also indirectly owns around 1.24 million shares through various trusts with which he is affiliated.
That’s not all, however. In addition, CFO John Janedis purchased 7,000 shares at an average price of $2.94 per share. After the purchase, Janedis directly owns 10,000 shares of FUBO stock.
It should be noted that both insider buys were purchased over the open market. What’s more, both insiders did not utilize a prearranged 10b5-1 trading plan.
Insiders typically only buy their own stock for one reason: They believe the price will go up. Furthermore, fuboTV is currently trading very close to its 52-week low of $2.82. As a result, Gandler and Janedis likely believe FUBO is undervalued. At the time of writing, the company’s price-sales (P/S) ratio is trading at a low 0.7 times.
Who Else Is Betting Big on fuboTV?
Tracking institutional ownership is important, as these large funds provide liquidity and price support for stocks. During Q4, 220 funds reported owning fuboTV, an increase of five funds from the prior quarter. Additionally, the institutional put/call ratio lies at 1.41. This signifies that more funds own put options against the company than call options.
With that in mind, let’s take a look at the top five shareholders:
- Vanguard Group: 11.68 million shares.
- BlackRock (NYSE:BLK): 9.81 million shares.
- Marc Stad: 4.29 million shares.
- Marshall Wace: 3.39 million shares.
- Susquehanna International: 3.19 million shares.
According to Whale Wisdom, Susquehanna also owns 3.24 million put options and 2.37 million call options.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
