10 Worst Broadcasting Stocks to Buy According to Short Sellers

8. Cumulus Media Inc. (NASDAQ:CMLS)

Short % of Shares Outstanding As of August 15: 1.28%

Number of Hedge Fund Holders: 5

Cumulus Media Inc. (NASDAQ:CMLS) is an audio-first broadcasting company and the second largest owner and operator of AM and FM radio stations in the US, behind iHeartMedia. It owns 401 stations in 85 media markets and also operates Westwood One.

Westwood One, the largest audio network in the US, is the exclusive national radio partner of the NFL for the 38th consecutive season. Currently, it is presenting national audio coverage of the 2024 college football season, featuring a total of 16 regular season games. It will also broadcast postseason events.

In Q2 2024, the company recorded $204.85 million, which represented a 2.52% year-over-year decline. This revenue is mainly attributed to the digital marketing services (DMS) business, which grew by 24%. The number of legacy radio clients purchasing DMS rose 25% year-over-year.

The digital businesses alone account for 19% of the total revenue and increased 5% from 2023. Cumulus Boost, a line of digital products, is responsible for a lot of this growth.

It also generated $1.9 million of political revenue in the second quarter, versus $1.2 million in the same period of 2020. Despite Q3 revenue currently pacing down, management expects advertisers’ spending to rise soon, considering the current political climate, which positions the company for growth. As of June 30, 5 hedge funds hold long positions In the company. The largest stake is $253,980 by CastleKnight Management.