10 Worst Broadcasting Stocks to Buy According to Short Sellers

6. E.W. Scripps Company (NASDAQ:SSP)

Short % of Shares Outstanding As of August 15: 4.45%

Number of Hedge Fund Holders: 20

E.W. Scripps Company (NASDAQ:SSP) is a media company that owns TV stations, national news channels, and entertainment brands. It started as a chain of daily newspapers and now specializes in diverse services, from local television broadcasting to digital media.

The company promoted Sean Franklin to vice president and general manager of WLEX, their NBC affiliate in Lexington, Kentucky on September 5. Franklin has been with WLEX since 2019 and has previously worked in engineering roles at other media companies.

E.W. Scripps Company (NASDAQ:SSP) recorded revenue of $573.63 million in Q2 2024. Q3 revenue is expected to be up by 20%. Expectations for connected TV revenue are lowered by the management, but Local Media election-year political advertising revenue is estimated to reach record levels, with a low-end range of $270-$290 million.

Previously in July, Scripps Sports signed the newest Stanley Cup champions, the Florida Panthers, to a production, sales, and distribution rights agreement. Viewership of the WNBA also skyrocketed and the revenue is up 85% from the 2023 season.

20 hedge fund holders hold long positions in the company, and D E Shaw has the largest stake with a value of $10,388,458, as of June 30. The shares are shorted by 4.45%. The company is reducing expenses and focusing on debt reduction. This will improve profitability and position the company for future growth, making it a promising investment.

Cove Street Capital Small Cap Value Fund stated the following regarding The E.W. Scripps Company (NASDAQ:SSP) in its Q2 2024 investor letter:

“The E.W. Scripps Company (NASDAQ:SSP) is too stupid cheap and too levered. We think both will be relieved to a great degree by an upcoming sale of their Bounce network, which could be sold for more than their current market cap. We also note Berkshire Hathaway and the Scripps family are key variables here being underestimated in the public opinion of balance sheet resolution for the company. A complete miss in national advertising trends in the past year has developed into a hairier balance sheet to which we generally feel comfortable. We again have been slowly in and out of the equity several times over the past seven years with solid results. This time around has been a little stickier.”