F1 Director Sells $62M Stock After Earnings Rally
Chase Carey exercised options for $62.13M and sold every share between November 9-12, exiting at a premium to his strike price while the stock trades at 59.4x forward P/E. The sale raises questions ab
F1 Director Sells $62M Stock After Earnings Rally
NEW YORK, November 14 —
Four days after Liberty Media filed Formula One Group's (FWONK) Q3 earnings 8-K, director Chase Carey converted 574,331 options (acquired at $28 per share) into $62.13 million of cash, selling every share between $105.13 and $110.60. The stock carries a 59.4x forward P/E on an earnings record that swung from a 280.7% beat to a 93.1% miss in consecutive quarters.
- Carey exercised 574,331 options at $28.00, sold immediately at $105, $110 for $62.13 million, November 9-12 per SEC filings.
- FWONK's forward P/E stands at 59.4x; analyst consensus target is $122.76 vs. current price of $109.04.
- Trailing twelve-month revenue: $4.50 billion, up 13.7% year-over-year; free cash flow of $620 million.
$28 In, $110 Out, Zero Left
The option math tells the story. Per SEC Form 4 filings, Carey exercised 574,331 options at $28.00 over four days starting November 9, selling each tranche the same day at $105.13 to $110.60: a spread of $77 to $82 per share. Formula One Group holds the commercial rights to the FIA World Championship, earning through television production, the Paddock Club hospitality program, freight services, and licensing; Pacsun's Austin trackside shop grew sales 19% in 2026 and is up 177% since its first F1 pop-up in 2023. With the analyst consensus target at $122.76, roughly 13% above his exit range, Carey sees less ahead than the Street does.
Four Quarters That Don't Fit the Multiple
The 59.4x forward P/E is a demanding price for earnings that have swung between a rounding-error beat and a near-total miss in consecutive reported quarters. When actual EPS came in at $0.02 against a estimate, in a quarter when trailing operating cash flow was running at $1.14 billion, the gap between cash generation and stated earnings exposed a structuring problem rather than a business problem. That gap is what makes a premium multiple fragile: the revenue line ($4.50 billion, growing at 13.7% year-over-year) is real, but the earnings line priced at that multiple requires a growth consistency the record has not yet shown; test those assumptions against a DCF calculator.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| FWONK | $27.8B | 58.1x | +10.8% |
| FWONA | $26.6B | 43.7x | +16.0% |
| BATRK | $3.3B | n/a | +35.3% |
| BATRA | $3.7B | n/a | +34.8% |
| LILAK | $1.8B | 24.0x | +74.3% |
| LILA | $1.8B | 65.4x | +75.3% |
What Would Prove Carey Wrong
The bearish thesis is not a bet against the F1 franchise (13.7% revenue growth and $620 million in trailing FCF are real), but against the multiple's durability given an earnings record that has yet to show consecutive-quarter delivery. What breaks it: a Q4 EPS print above consensus that closes the gap between operating cash flow and net earnings, confirming the 93.1% miss two quarters ago was an anomaly rather than a structural feature. Formula One Group carries $5.53 billion in total debt against $2.34 billion in cash, manageable but providing little cushion for another shortfall. Run the Formula One Group deep-dive to pressure-test the numbers.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
Why did Chase Carey sell $62 million in Formula One stock?
Carey exercised 574,331 options at his $28.00 strike price and immediately sold all shares between $105.13 and $110.60 per share from November 9-12. The sale occurred four days after Formula One's Q3 earnings filing, netting him $62.13 million. His exit below the $122.76 analyst consensus target suggests he sees less upside ahead than the Street does.
What is Formula One Group's forward P/E multiple?
Formula One Group trades at a 59.4x forward P/E, a demanding valuation for a company whose earnings have swung between a 280.7% beat and a 93.1% miss in consecutive quarters. The most recent quarter saw actual EPS of $0.02 against a $0.247 estimate, while trailing revenue of $4.50 billion grew 13.7% year-over-year.
What does Formula One Group earn money from?
Formula One holds commercial rights to the FIA World Championship and generates revenue through television production, the Paddock Club hospitality program, freight services, and licensing. The company also operates Pacsun's Austin trackside shop, which grew sales 19% in 2026 and is up 177% since its first F1 pop-up in 2023.
What would prove the bearish case wrong on FWONK stock?
A Q4 EPS print above consensus that closes the gap between operating cash flow and net earnings would confirm the 93.1% miss was an anomaly rather than a structural issue, validating the 59.4x forward multiple's durability.
How much debt does Formula One Group carry?
Formula One carries $5.53 billion in total debt against $2.34 billion in cash, described as manageable but providing little cushion for another shortfall.
Formula One Group director Chase Carey sold $62.13 million in FWONK shares over November 9–12, 2026, exercising stock options acquired at $28.00 and selling into a stock touching $110 for the first time — just four days after the company's Q3 2026 earnings 8-K. The exit lands as shares trade at a 59.4x forward P/E ratio on a four-quarter earnings record that alternates between large beats and larger misses.