The New York Times Co. (NYT) Downgraded to Sell at Zacks Investment Research
According to Zacks, “After seven straight quarters of earnings beat, The New York Times Company succumbed to a negative earnings surprise in second-quarter 2016, wherein its bottom line declined on a year-over-year basis. Total revenue also slid and fell short of the estimate. The quarter marked an increase in digital subscribers and a rise in circulation revenue but witnessed decline across print and digital advertising revenues. Total advertising revenue fell 11.7% during the quarter. Management expects total advertising revenue to decline in the mid-single digits in the third quarter. However, it projects solid revenue growth from both digital advertising and digital consumer business in the third quarter. The company is diversifying its business, adding new revenue streams, strengthening its balance sheet and restructuring its portfolio. It had offloaded assets in order to re-focus on its core newspapers and pay more attention to its online activities.”
A number of other analysts have also recently weighed in on NYT. Jefferies Group restated a hold rating and set a $13.00 target price on shares of The New York Times in a report on Friday, July 29th. TheStreet upgraded shares of The New York Times from a hold rating to a buy rating in a report on Thursday, August 4th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the stock. The New York Times currently has a consensus rating of Hold and an average price target of $13.60.
Shares of The New York Times (NYSE:NYT) opened at 12.14 on Monday. The New York Times has a 52 week low of $11.45 and a 52 week high of $14.27. The stock has a market capitalization of $1.95 billion, a PE ratio of 37.47 and a beta of 1.62. The stock’s 50 day moving average is $12.66 and its 200 day moving average is $12.47.
The New York Times (NYSE:NYT) last issued its earnings results on Thursday, July 28th. The company reported $0.11 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.11. The firm earned $372.60 million during the quarter, compared to analysts’ expectations of $377.15 million. The New York Times had a net margin of 3.36% and a return on equity of 13.70%. The firm’s revenue for the quarter was down 2.7% compared to the same quarter last year. During the same period last year, the firm posted $0.13 earnings per share. Analysts anticipate that The New York Times will post $0.58 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Thursday, October 20th. Shareholders of record on Wednesday, October 5th will be given a $0.04 dividend. The ex-dividend date is Monday, October 3rd. This represents a $0.16 dividend on an annualized basis and a yield of 1.32%. The New York Times’s payout ratio is 50.00%.
In other news, EVP Kenneth A. Richieri sold 24,942 shares of the firm’s stock in a transaction on Thursday, August 18th. The shares were sold at an average price of $12.95, for a total transaction of $322,998.90. Following the transaction, the executive vice president now owns 50,203 shares in the company, valued at approximately $650,128.85. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Levien Meredith A. Kopit sold 26,728 shares of the firm’s stock in a transaction on Thursday, August 25th. The shares were sold at an average price of $13.06, for a total transaction of $349,067.68. The disclosure for this sale can be found here. 6.20% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in NYT. Northwestern Mutual Investment Management Company LLC increased its position in The New York Times by 0.5% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 21,284 shares of the company’s stock worth $258,000 after buying an additional 109 shares in the last quarter. Amalgamated Bank increased its position in The New York Times by 1.0% in the second quarter. Amalgamated Bank now owns 15,426 shares of the company’s stock worth $196,000 after buying an additional 148 shares in the last quarter. Legal & General Group Plc increased its position in The New York Times by 1.4% in the second quarter. Legal & General Group Plc now owns 32,611 shares of the company’s stock worth $391,000 after buying an additional 455 shares in the last quarter. State Treasurer State of Michigan increased its position in The New York Times by 1.0% in the second quarter. State Treasurer State of Michigan now owns 49,500 shares of the company’s stock worth $599,000 after buying an additional 500 shares in the last quarter. Finally, Public Employees Retirement System of Ohio increased its position in The New York Times by 6.7% in the second quarter. Public Employees Retirement System of Ohio now owns 8,226 shares of the company’s stock worth $100,000 after buying an additional 517 shares in the last quarter. Institutional investors and hedge funds own 62.86% of the company’s stock.
The New York Times Company Profile
The New York Times Company is a media organization focused on creating, collecting and distributing news and information. The Company includes newspapers, digital businesses and investments. Its businesses include newspapers, such as The New York Times; the International New York Times (INYT), the international edition of The Times; Websites, including NYTimes.com and international.nytimes.com; mobile applications, including The Times’s news applications, as well as interest-specific applications, such as NYT Cooking, Crossword and others, and related businesses, such as The Times news services division, digital archive distribution, NYT Live, and other products and services under The Times brand.
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