Zacks Investment Research Upgrades Time Warner (TWX) to Hold
Zacks Investment Research upgraded shares of Time Warner (NYSE:TWX) from a sell rating to a hold rating in a research report report published on Saturday.
According to Zacks, “Shares of Time Warner have declined and underperformed the industry in the past three months, after its takeover by AT&T hit a roadblock. The DOJ raised antitrust concerns over the merger, which was likely to conclude by the end of this year. However, keeping aside the issue we believe Time Warner’s foray into new markets and digital efforts, and investments in video content and technology bode well. The company witnessed robust subscription revenue growth at HBO and Turner during third-quarter 2017. Warner Bros. benefited from the success of It, Annabelle: Creation and others. However, management expects HBO’s programming cost to increase at a higher rate in the final quarter due to the timing of original programming and availability of acquired content. Further, operating income at Warner Bros. is also likely to fall in the quarter. Decline in overall advertising spending and currency headwinds may also impact the performance.”
TWX has been the subject of several other research reports. Rosenblatt Securities raised shares of Time Warner from a neutral rating to a buy rating and set a $103.00 price objective for the company in a research note on Monday, November 13th. Credit Suisse Group lowered shares of Time Warner from an outperform rating to a neutral rating and set a $107.50 price objective for the company. in a research note on Monday, September 18th. Cowen reissued a hold rating and issued a $102.00 price objective on shares of Time Warner in a research note on Friday, October 27th. Deutsche Bank reissued a buy rating and issued a $99.00 price objective on shares of Time Warner in a research note on Friday, November 10th. Finally, Guggenheim reissued a buy rating on shares of Time Warner in a research note on Thursday. Twenty-one equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The stock has a consensus rating of Hold and a consensus price target of $104.88.
Time Warner (NYSE:TWX) last posted its quarterly earnings data on Thursday, October 26th. The media conglomerate reported $1.82 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.59 by $0.23. Time Warner had a net margin of 13.59% and a return on equity of 18.57%. The business had revenue of $7.60 billion during the quarter, compared to analyst estimates of $7.40 billion. During the same quarter last year, the firm posted $1.83 earnings per share. The business’s revenue for the quarter was up 6.0% compared to the same quarter last year. sell-side analysts anticipate that Time Warner will post 6.2 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Thursday, February 1st. Investors of record on Wednesday, January 10th will be paid a $0.4025 dividend. The ex-dividend date of this dividend is Tuesday, January 9th. This represents a $1.61 dividend on an annualized basis and a yield of 1.73%. Time Warner’s dividend payout ratio is currently 30.61%.
In related news, insider Olaf Olafsson sold 23,450 shares of Time Warner stock in a transaction that occurred on Thursday, December 14th. The shares were sold at an average price of $90.03, for a total value of $2,111,203.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Jeffrey L. Bewkes sold 329,478 shares of Time Warner stock in a transaction that occurred on Thursday, December 7th. The stock was sold at an average price of $90.65, for a total transaction of $29,867,180.70. Following the completion of the transaction, the chief executive officer now owns 855,925 shares of the company’s stock, valued at approximately $77,589,601.25. The disclosure for this sale can be found here. 0.16% of the stock is owned by insiders.
A number of institutional investors have recently modified their holdings of TWX. Jacobi Capital Management LLC raised its holdings in Time Warner by 2.1% during the second quarter. Jacobi Capital Management LLC now owns 995 shares of the media conglomerate’s stock worth $100,000 after purchasing an additional 20 shares in the last quarter. Bank of Nova Scotia Trust Co. acquired a new stake in Time Warner during the third quarter worth approximately $102,000. Americafirst Capital Management LLC acquired a new stake in Time Warner during the third quarter worth approximately $106,000. Patriot Financial Group Insurance Agency LLC raised its holdings in Time Warner by 4.0% during the second quarter. Patriot Financial Group Insurance Agency LLC now owns 1,153 shares of the media conglomerate’s stock worth $116,000 after purchasing an additional 44 shares in the last quarter. Finally, Zions Bancorporation raised its holdings in Time Warner by 698.6% during the third quarter. Zions Bancorporation now owns 1,142 shares of the media conglomerate’s stock worth $117,000 after purchasing an additional 999 shares in the last quarter. Institutional investors own 77.83% of the company’s stock.
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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 premium pay television and over the top (OTT) services and premium pay, basic tier television and OTT services internationally, and Warner Bros., which consists of television, feature film, home video, and videogame production and distribution.
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