Viacom Inc. (VIAB) Cut to Strong Sell at Zacks Investment Research
Zacks Investment Research cut shares of Viacom Inc. (NASDAQ:VIAB) from a hold rating to a strong sell rating in a research report report published on Tuesday morning.
According to Zacks, “Shares of Viacom have underperformed the industry it belongs to in a year. Morever, declining domestic advertising revenues are hurting the company. The bleak outlook with respect to domestic affiliate revenues in the fiscal fourth quarter also remains a concern. Viacom's high debt levels are also concerning. The company is also liable to be hurt by adverse foreign currency movement as it operates globally. The pessimism surrounding the stocks is evident from the Zacks Consensus Estimate for current quarter being revised 6.4% downward over the last 60 days. However, the company's efforts to expand portfolio and shareholder-friendly moves are impressive. “
Other research analysts have also issued reports about the stock. Piper Jaffray Companies reaffirmed a hold rating and issued a $40.00 price objective on shares of Viacom in a research note on Tuesday, September 26th. Loop Capital reissued a hold rating and set a $32.00 price target (down from $36.00) on shares of Viacom in a research report on Monday, September 25th. Cowen and Company dropped their price target on shares of Viacom from $41.00 to $31.00 in a research report on Tuesday, September 19th. Needham & Company LLC reissued a hold rating on shares of Viacom in a research report on Tuesday, September 12th. Finally, Sanford C. Bernstein reissued an underperform rating on shares of Viacom in a research report on Tuesday, September 12th. Seven investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and nine have given a buy rating to the company’s stock. The stock has an average rating of Hold and a consensus price target of $41.17.
Viacom (NASDAQ:VIAB) traded down 0.55% during mid-day trading on Tuesday, reaching $27.15. 777,145 shares of the company’s stock were exchanged. The firm has a market cap of $10.92 billion, a price-to-earnings ratio of 7.47 and a beta of 1.57. Viacom has a 12 month low of $26.65 and a 12 month high of $46.72. The stock has a 50-day moving average of $28.00 and a 200-day moving average of $34.94.
Viacom (NASDAQ:VIAB) last released its quarterly earnings results on Thursday, August 3rd. The company reported $1.17 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.05 by $0.12. Viacom had a net margin of 11.04% and a return on equity of 30.89%. The firm had revenue of $3.36 billion during the quarter, compared to the consensus estimate of $3.29 billion. During the same quarter last year, the firm earned $1.05 earnings per share. The company’s revenue for the quarter was up 8.3% on a year-over-year basis. Analysts anticipate that Viacom will post $3.86 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Monday, October 2nd. Stockholders of record on Friday, September 15th were given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.93%. The ex-dividend date was Thursday, September 14th. Viacom’s dividend payout ratio is presently 21.98%.
Large investors have recently added to or reduced their stakes in the company. First Mercantile Trust Co. grew its position in Viacom by 1.6% during the 2nd quarter. First Mercantile Trust Co. now owns 3,428 shares of the company’s stock valued at $115,000 after purchasing an additional 54 shares during the last quarter. Wall Street Access Asset Management LLC grew its position in Viacom by 1.1% during the 2nd quarter. Wall Street Access Asset Management LLC now owns 6,315 shares of the company’s stock valued at $212,000 after purchasing an additional 70 shares during the last quarter. Cleararc Capital Inc. grew its position in Viacom by 0.9% during the 1st quarter. Cleararc Capital Inc. now owns 8,495 shares of the company’s stock valued at $396,000 after purchasing an additional 72 shares during the last quarter. Stratos Wealth Partners LTD. grew its position in Viacom by 0.6% during the 1st quarter. Stratos Wealth Partners LTD. now owns 11,781 shares of the company’s stock valued at $549,000 after purchasing an additional 76 shares during the last quarter. Finally, Boston Private Wealth LLC grew its position in Viacom by 1.8% during the 2nd quarter. Boston Private Wealth LLC now owns 6,093 shares of the company’s stock valued at $205,000 after purchasing an additional 108 shares during the last quarter. 79.18% of the stock is currently owned by hedge funds and other institutional investors.
Viacom Inc offers global media brands that create television programs, motion pictures, short-form content, applications, games, consumer products, social media experiences and other entertainment content. As of September 30, 2016, the Company offered its services for audiences in more than 180 countries.
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