Live Nation chief executive Michael Rapino has purchased $1 million worth of stock in the company he has built since 2005, according to a recent filing with the Securities and Exchange Commission on Thursday (March 12).
The stock purchase comes on a brutal day for the stock market, with the Dow Jones Industrial Average dropping nearly 10% or about 2,352 points — the biggest one-day drop in 33 years. Both the S&P 500 and the Nasdaq, where Live Nation is listed, were each down more than 9%.
Live Nation’s stock was battered by the selloff, dropping 16.6% as the Nasdaq approached bear market conditions, ending the day at $36.20 per share, a 52% drop from a high of $76.08 on Feb. 19, all tied to growing concerns about the spread of coronavirus in the U.S.
The drop comes despite Live Nation having one of its best years ever in 2019, with revenue growing 7% to $11.5 billion and adjusted operating income increasing 14% to $942.5 million, according to the company’s year-end earnings report from Feb. 27.
While the coronavirus outbreak has had a limited impact on the company’s actual business — March is generally a slow month for the company with only a few marquee tours on the road, including Pearl Jam’s Gigaton tour — uncertainty about the future has prompted a selloff by jittery investors.
In Thursday’s purchase, Rapino bought 25,650 shares of common stock at an average of $38.98 per share which totals $999,837.
Also buying stock was board director James Kahan, who purchased more than $110,000 worth of common stock and company executive vp and general counsel Michael Rowles, who purchased nearly $100,000 worth of common stock.