Shares of interactive media company iMedia Brands, Inc. (IMBI) have gained 31% in the past year. IMBI operates a worldwide portfolio of entertainment, consumer brands, and media services businesses.
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Recently, the company’s third quarter revenue jumped 20% to $130.7 million, exceeding analysts’ estimates by $3.3 million. Net loss of $0.23 per share came in narrower than estimates by $0.06.
In Q3, IMBI launched over 25 new brands across its television networks. Buoyed by a 65% growth in new customers, the company’s 12-month rolling active customers grew by 20%.
With these developments in mind, let us take a look at the changes in IMBI’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, iMedia Brands’ top risk category is Finance & Corporate, contributing 25% to the total 36 risks identified. In its recent quarterly report, the company has added two key risk factors under the Macro & Political risk category.
IMBI highlighted that its recently closed acquisition of the 1-2-3tv Group has expanded its operations to international markets, including Germany and Austria. IMBI conceded that it had no prior experience of operating internationally. The acquisition exposes the company to significant new legislative, judicial, regulatory, economic, and political risks. Additionally, the new operations would also require substantial resources and management attention.
IMBI also noted that the COVID-19 pandemic could have a negative impact on its international business operations. Furthermore, changes in the economic and political conditions amid the pandemic could also lead to volatility in demand for IMBI’s products.
Compared to a sector average of 11%, IMBI’s Macro & Political risk factor is at 19%.
Tracking Insiders
Keeping a tab on insiders stocks can provide timely insights for retail investors. According to TipRanks data on Insider Activity, insiders have bought iMedia Brands shares worth $51.7 thousand in the last three months, indicating a positive insider confidence signal for the stock based on 1 insider transaction in the last 3 months.
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