Zacks Investment Research Downgrades Time Warner Inc. (TWX) to Hold
Time Warner Inc. (NYSE:TWX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
According to Zacks, “Time Warner’s initiatives such as foraying into new markets and digital endeavors bode well. This is quite evident from positive earnings surprise streak in the last 18 quarters, including earnings beat of 11.2% in second-quarter 2016. The company's investments in video content and technology continued to show results. Share repurchase activity and lower effective tax rate also provided cushion to the bottom line. Better-than-expected results prompted management to raise its full year earnings projection. Additionally, we believe that the company's investments in programming, production and marketing, coupled with its focus on operating and capital efficiencies augur well. However, decline in overall advertising spending and currency headwinds may adversely impact the company’s performance. Moreover, management expects to face tough comparisons in video games and TV licensing at Warner Bros. during the third quarter.”
A number of other equities research analysts have also recently commented on TWX. FBR & Co cut Time Warner from an “outperform” rating to a “market perform” rating and set a $81.00 price target for the company. in a research note on Tuesday, July 26th. Albert Fried & Company reiterated an “outperform” rating and issued a $90.00 price target on shares of Time Warner in a research note on Thursday, September 29th. Brean Capital reiterated a “buy” rating on shares of Time Warner in a research note on Tuesday, July 26th. RBC Capital Markets reiterated an “outperform” rating and issued a $95.00 price target (up from $92.00) on shares of Time Warner in a research note on Thursday, August 4th. Finally, Royal Bank Of Canada increased their price target on Time Warner from $92.00 to $95.00 and gave the company an “outperform” rating in a research note on Thursday, August 4th. Eleven investment analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has given a strong buy rating to the company’s stock. Time Warner presently has a consensus rating of “Buy” and a consensus price target of $86.11.
Time Warner (NYSE:TWX) traded up 0.729% during trading on Tuesday, hitting $79.415. The stock had a trading volume of 464,029 shares. Time Warner has a 52-week low of $55.53 and a 52-week high of $81.33. The stock’s 50-day moving average is $78.08 and its 200-day moving average is $76.30. The stock has a market capitalization of $61.77 billion, a PE ratio of 15.801 and a beta of 1.21.
Time Warner (NYSE:TWX) last issued its quarterly earnings data on Wednesday, August 3rd. The media conglomerate reported $1.29 earnings per share for the quarter, beating analysts’ consensus estimates of $1.16 by $0.13. Time Warner had a return on equity of 17.33% and a net margin of 14.54%. The company had revenue of $7 billion for the quarter, compared to the consensus estimate of $7.12 billion. During the same quarter last year, the company earned $1.25 earnings per share. The firm’s revenue for the quarter was down 5.4% compared to the same quarter last year. On average, analysts predict that Time Warner will post $5.42 earnings per share for the current fiscal year.
In related news, EVP Paul T. Cappuccio sold 56,595 shares of the business’s stock in a transaction on Wednesday, September 7th. The stock was sold at an average price of $78.24, for a total transaction of $4,427,992.80. Following the completion of the transaction, the executive vice president now directly owns 157,877 shares of the company’s stock, valued at approximately $12,352,296.48. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Karen Magee sold 14,240 shares of the business’s stock in a transaction on Thursday, August 25th. The stock was sold at an average price of $79.97, for a total value of $1,138,772.80. Following the transaction, the insider now directly owns 7,461 shares of the company’s stock, valued at $596,656.17. The disclosure for this sale can be found here. 0.16% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. NN Investment Partners Holdings N.V. bought a new position in Time Warner during the first quarter valued at approximately $803,000. OMERS ADMINISTRATION Corp acquired a new position in Time Warner during the first quarter valued at about $595,000. Rafferty Asset Management LLC acquired a new position in Time Warner during the first quarter valued at about $3,537,000. Meeder Asset Management Inc. boosted its position in Time Warner by 50.1% in the first quarter. Meeder Asset Management Inc. now owns 25,736 shares of the media conglomerate’s stock valued at $1,867,000 after buying an additional 8,589 shares in the last quarter. Finally, Lazard Asset Management LLC boosted its position in Time Warner by 71.3% in the first quarter. Lazard Asset Management LLC now owns 341,127 shares of the media conglomerate’s stock valued at $24,747,000 after buying an additional 142,005 shares in the last quarter. 80.68% of the stock is owned by hedge funds and other institutional investors.
Time Warner Company Profile
Time Warner Inc is a media and entertainment company. The Company operates through three segments: Turner, which consists of cable networks and digital media properties; Home Box Office, which consists of domestic premium pay television and streaming services, and international premium pay, basic tier television services and streaming services, and Warner Bros., which consists of television, feature film, home video and videogame production and distribution.
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