Meredith Corp. (MDP) Upgraded to “Hold” by Zacks Investment Research
Meredith Corp. (NYSE:MDP) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “Meredith continued with its positive earnings surprise streak for the eleventh straight quarter when it posted fourth-quarter fiscal 2016 results. Favorable advertising trends in the digital section and recent acquisitions continue to positively influence the company’s performance. Digital traffic increased to more than 80 million monthly unique visitors. The company expects strong political advertising cycle as well as higher retransmission revenues and robust digital advertising revenue growth to drive its performance higher in fiscal 2017. Meredith is focused on bolstering advertising revenues, primarily in the digital space, and is increasingly concentrating on brand licensing, marketing services and eCommerce. However, with advancing technology, the print media is on a decline. Shift to online is likely to put enormous pressure on Meredith’s magazine portfolio.”
Separately, Benchmark Co. increased their price target on Meredith Corp. from $57.00 to $62.00 and gave the stock a “buy” rating in a research report on Friday, July 29th. Four equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus target price of $54.20.
Meredith Corp. (NYSE:MDP) traded up 0.06% during trading on Wednesday, hitting $50.23. The stock had a trading volume of 72,914 shares. The company’s 50 day moving average is $51.92 and its 200-day moving average is $51.33. Meredith Corp. has a 12 month low of $35.03 and a 12 month high of $57.53. The company has a market cap of $2.24 billion, a PE ratio of 66.97 and a beta of 1.01.
Meredith Corp. (NYSE:MDP) last issued its quarterly earnings results on Thursday, July 28th. The company reported $1.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.05. The company had revenue of $435.78 million for the quarter, compared to the consensus estimate of $437.78 million. Meredith Corp. had a return on equity of 15.66% and a net margin of 2.06%. Meredith Corp.’s revenue for the quarter was up 2.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.94 earnings per share. On average, equities research analysts predict that Meredith Corp. will post $3.68 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Wednesday, August 31st were given a $0.495 dividend. The ex-dividend date was Monday, August 29th. This represents a $1.98 annualized dividend and a dividend yield of 3.94%. Meredith Corp.’s dividend payout ratio (DPR) is presently 275.00%.
In other news, insider John S. Zieser sold 1,206 shares of the firm’s stock in a transaction that occurred on Thursday, August 18th. The stock was sold at an average price of $55.00, for a total value of $66,330.00. Following the transaction, the insider now owns 18,000 shares in the company, valued at $990,000. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Joseph H. Ceryanec sold 4,554 shares of the firm’s stock in a transaction that occurred on Wednesday, August 17th. The shares were sold at an average price of $54.13, for a total value of $246,508.02. Following the completion of the transaction, the chief financial officer now owns 31,205 shares in the company, valued at approximately $1,689,126.65. The disclosure for this sale can be found here. 11.24% of the stock is owned by insiders.
Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Fund Advisors increased its position in Meredith Corp. by 1.4% in the second quarter. BlackRock Fund Advisors now owns 5,286,511 shares of the company’s stock valued at $274,423,000 after buying an additional 70,526 shares during the period. Vanguard Group Inc. increased its position in shares of Meredith Corp. by 4.6% in the second quarter. Vanguard Group Inc. now owns 2,810,810 shares of the company’s stock worth $145,909,000 after buying an additional 124,448 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC increased its position in shares of Meredith Corp. by 245.2% in the second quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 2,157,605 shares of the company’s stock worth $112,002,000 after buying an additional 1,532,611 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Meredith Corp. by 16.1% in the second quarter. Dimensional Fund Advisors LP now owns 1,967,824 shares of the company’s stock worth $102,148,000 after buying an additional 272,663 shares during the last quarter. Finally, State Street Corp increased its position in shares of Meredith Corp. by 0.9% in the second quarter. State Street Corp now owns 1,177,881 shares of the company’s stock worth $61,143,000 after buying an additional 10,500 shares during the last quarter. Institutional investors and hedge funds own 82.32% of the company’s stock.
About Meredith Corp.
Meredith Corporation is a media and marketing company. The Company operates two business segments namely local media and national media. Its national media segment includes national consumer media brands delivered via multiple media platforms including print magazines and digital and mobile media, brand licensing activities, database-related activities and business-to-business marketing products and services.
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