Bob Pittman Buys iHeartMedia Stock

Bob Pittman, the Chairman and CEO of iHeartMedia, Inc., this week purchased 200,000 shares of the company's stock at an average price of $1.60 per share, totaling $320,000. 

This transaction was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) released on Thursday. Following the announcement of this insider purchase, iHeartMedia's stock price surged by 23.2%, rising from $1.51 on Wednesday, March 5, to $1.86 on Thursday, March 6. This significant jump reflects investor confidence in Pittman’s move, often interpreted as a signal that the CEO believes the stock is undervalued and that the company has strong future potential.

Pittman’s purchase came after a challenging period for iHeartMedia’s stock. In the four trading days following the company’s fourth-quarter earnings release on February 27, 2025, the stock had dropped 27.7%, falling from a higher value to $1.51 by March 5. The earnings report and subsequent commentary from iHeartMedia executives indicated a mixed outlook: while fourth-quarter revenue grew by 6% to $1.13 billion, driven by digital audio and podcasting growth, the company forecasted a low single-digit revenue decline for the first quarter of 2025. 

Bob Pittman

CFO Rich Bressler noted a 5.5% revenue increase in January but a projected 7% decline in February, attributing this to economic uncertainties like potential tariffs, inflation, and higher interest rates affecting consumer sentiment. Despite these headwinds, Pittman expressed optimism, suggesting that market uncertainties would stabilize as the year progressed.

This isn’t the first time Pittman has invested heavily in iHeartMedia stock. In November 2023, he bought 100,000 shares at $2.06 each when the stock hit a post-bankruptcy low, and in August 2021, he purchased shares at $23.25, showing a pattern of buying during perceived dips. This week's purchase increased his ownership to approximately 4.24 million shares, valued at around $6.79 million based on the $1.86 closing price on March 6. Historically, such insider purchases by CEOs are seen as a vote of confidence, and in this case, it mitigated some of the stock’s year-to-date decline, reducing it from 23.7% to 6.1%.

The market’s reaction aligns with a broader trend where insider buying can boost investor sentiment, especially after a sell-off. However, iHeartMedia’s stock remains volatile—it’s down significantly from its June 2021 peak of nearly $27—and the company faces ongoing challenges in a shifting media landscape. Pittman’s move suggests he sees long-term value, but whether this optimism translates into sustained growth depends on how iHeartMedia navigates the uncertain economic conditions ahead.