Paramount Global Chairwoman, Shari Redstone, has demonstrated her confidence in the company by purchasing $2.5 million worth of shares. The stock was trading near a 52-week low at the time of the purchase.
Details of the Purchase
Redstone acquired 165,000 nonvoting Class B shares of Paramount Global (ticker: PARA) at $15.06 each in an open market transaction on Tuesday. This purchase brings her total holdings to 577,064 shares.
Positive Movement in Stock Price
Following the purchase, Paramount shares experienced a 4.2% increase, closing at $15.57 on Wednesday. This rise in share price came after hitting a new 52-week low of $14.88.
Recent Weakness in Stock Performance
Paramount’s stock has been under pressure recently due to disappointing first-quarter earnings. The company reported a significant 85% drop in earnings per share to just nine cents. Additionally, the quarterly dividend was reduced from 24 cents to 5 cents per share.
Over the past decade, the stock has performed poorly, trading at only a fraction of its value in 2013. In fact, it is currently at the same level as its late-1990s trading price.
Redstone Family and Berkshire Hathaway as Key Shareholders
The Redstone family maintains control over Paramount Global through their ownership of nearly 80% of the voting stock. The Redstone trust alone holds a substantial 31 million shares of voting stock.
Berkshire Hathaway, owned by Warren Buffett, is also a significant shareholder in Paramount. They possess 93 million shares, accounting for approximately 14% of the company.
