Zacks Investment Research Downgrades Outfront Media Inc. (OUT) to Hold
Outfront Media Inc. (NYSE:OUT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “Outfront Media reported third-quarter 2016 adjusted funds from operations (FFO) per share of $0.63 which exceeded the Zacks Consensus Estimate of $0.53 as well as the prior-year quarter figure of $0.50. Recently, the company made the announcement of coming to an agreement with the Metropolitan Transportation Authority (MTA) for extension of its existing transit advertising services contract. Also, the company worked with Cinema Scene Marketing for the installation of the digital lobby display – StoryWall. Outfront’s ON Smart Media Platform has been utilized for this installation. Going forward, the company’s huge diversity, both industry-wise and geographical, efforts to convert from traditional static billboard displays to digital billboard displays and low cost out-of-home (OOH) platform augur well. But, cut throat competition, dependence on the prospects of advertisers and any rise in interest rates remain concerns.”
Several other equities research analysts have also recently commented on OUT. Gabelli began coverage on Outfront Media in a report on Friday, July 22nd. They set a “hold” rating and a $29.00 target price on the stock. Wedbush began coverage on Outfront Media in a report on Thursday, July 21st. They set a “neutral” rating and a $26.00 target price on the stock. Finally, Loop Capital began coverage on Outfront Media in a report on Monday, September 12th. They set a “hold” rating and a $23.00 target price on the stock. Five research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The company currently has a consensus rating of “Hold” and an average target price of $26.00.
Shares of Outfront Media (NYSE:OUT) opened at 21.48 on Thursday. The stock’s 50 day moving average price is $22.26 and its 200 day moving average price is $22.60. Outfront Media has a 12-month low of $18.01 and a 12-month high of $24.32. The firm’s market cap is $2.97 billion.
Outfront Media (NYSE:OUT) last announced its earnings results on Monday, November 7th. The company reported $0.28 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.53 by $0.25. Outfront Media had a negative return on equity of 0.79% and a negative net margin of 0.63%. The firm had revenue of $382.80 million for the quarter, compared to the consensus estimate of $382.38 million. During the same period in the previous year, the firm earned $0.50 EPS. Outfront Media’s revenue for the quarter was down 1.0% on a year-over-year basis. On average, equities research analysts predict that Outfront Media will post $0.66 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Friday, December 30th. Shareholders of record on Friday, December 9th will be issued a $0.34 dividend. The ex-dividend date of this dividend is Wednesday, December 7th. This represents a $1.36 annualized dividend and a dividend yield of 6.33%. Outfront Media’s dividend payout ratio is currently -1,942.58%.
In related news, CFO Donald R. Shassian purchased 5,000 shares of the company’s stock in a transaction on Tuesday, September 6th. The shares were bought at an average price of $21.90 per share, with a total value of $109,500.00. Following the completion of the acquisition, the chief financial officer now owns 137,438 shares of the company’s stock, valued at $3,009,892.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Andrew Sriubas purchased 6,000 shares of the company’s stock in a transaction on Wednesday, September 14th. The stock was bought at an average cost of $20.88 per share, for a total transaction of $125,280.00. Following the acquisition, the executive vice president now directly owns 19,319 shares of the company’s stock, valued at approximately $403,380.72. The disclosure for this purchase can be found here. 0.36% of the stock is owned by company insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Checchi Capital Advisers LLC boosted its position in Outfront Media by 46.6% in the second quarter. Checchi Capital Advisers LLC now owns 4,142 shares of the company’s stock valued at $100,000 after buying an additional 1,317 shares during the last quarter. Public Employees Retirement Association of Colorado boosted its position in Outfront Media by 0.5% in the second quarter. Public Employees Retirement Association of Colorado now owns 4,431 shares of the company’s stock valued at $107,000 after buying an additional 21 shares during the last quarter. Societe Generale purchased a new position in Outfront Media during the second quarter valued at $111,000. SG Americas Securities LLC purchased a new position in Outfront Media during the second quarter valued at $111,000. Finally, Advisory Services Network LLC boosted its position in Outfront Media by 33.0% in the second quarter. Advisory Services Network LLC now owns 4,986 shares of the company’s stock valued at $121,000 after buying an additional 1,236 shares during the last quarter.
About Outfront Media
OUTFRONT Media Inc, formerly CBS Outdoor Americas Inc, is a provider of advertising space on out-of-home advertising structures and sites across the United States, Canada and Latin America. The Company’s inventory consists of billboard displays and transit advertising displays. It operates through two segments.
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