Time Warner (NYSE:TWX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued 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.”
A number of other equities research analysts have also recently commented on the stock. Deutsche Bank restated a “buy” rating and issued a $99.00 price target on shares of Time Warner in a report on Friday, November 10th. Loop Capital reduced their price target on shares of Time Warner from $107.50 to $102.00 and set a “hold” rating for the company in a report on Thursday, November 9th. Wells Fargo & Co restated a “market perform” rating and issued a $84.00 price target (down from $100.00) on shares of Time Warner in a report on Tuesday, November 21st. Cowen restated a “hold” rating and issued a $102.00 price target on shares of Time Warner in a report on Friday, October 27th. Finally, ValuEngine cut shares of Time Warner from a “buy” rating to a “hold” rating in a report on Thursday, October 26th. Twenty-one equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. Time Warner has a consensus rating of “Hold” and an average target price of $104.88.
Shares of Time Warner (NYSE TWX) opened at $93.60 on Friday. The company has a quick ratio of 1.26, a current ratio of 1.48 and a debt-to-equity ratio of 0.80. The company has a market cap of $72,880.00, a price-to-earnings ratio of 17.79, a price-to-earnings-growth ratio of 1.38 and a beta of 0.95. Time Warner has a twelve month low of $85.88 and a twelve month high of $103.90.
Time Warner (NYSE:TWX) last posted its quarterly earnings results on Thursday, October 26th. The media conglomerate reported $1.82 EPS for the quarter, topping analysts’ consensus estimates of $1.59 by $0.23. The business had revenue of $7.60 billion during the quarter, compared to analysts’ expectations of $7.40 billion. Time Warner had a net margin of 13.59% and a return on equity of 18.57%. The business’s quarterly revenue was up 6.0% on a year-over-year basis. During the same period last year, the company posted $1.83 earnings per share. equities analysts predict that Time Warner will post 6.2 EPS for the current fiscal year.
In related news, insider Olaf Olafsson sold 23,450 shares of the firm’s stock in a transaction dated Thursday, December 14th. The shares were sold at an average price of $90.03, for a total transaction of $2,111,203.50. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Jeffrey L. Bewkes sold 329,478 shares of the firm’s stock in a transaction dated Thursday, December 7th. The shares were sold at an average price of $90.65, for a total transaction of $29,867,180.70. Following the transaction, the chief executive officer now directly owns 855,925 shares in the company, valued at $77,589,601.25. The disclosure for this sale can be found here. 0.16% of the stock is owned by company insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in TWX. Beach Investment Management LLC. bought a new position in shares of Time Warner during the second quarter valued at about $3,859,000. Edgemoor Investment Advisors Inc. lifted its position in shares of Time Warner by 0.5% during the second quarter. Edgemoor Investment Advisors Inc. now owns 113,836 shares of the media conglomerate’s stock valued at $11,411,000 after purchasing an additional 525 shares in the last quarter. GAM Holding AG lifted its position in shares of Time Warner by 23.7% during the second quarter. GAM Holding AG now owns 180,455 shares of the media conglomerate’s stock valued at $18,120,000 after purchasing an additional 34,632 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. lifted its position in shares of Time Warner by 2.4% during the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 2,220,668 shares of the media conglomerate’s stock valued at $222,977,000 after purchasing an additional 52,905 shares in the last quarter. Finally, First National Trust Co. lifted its position in shares of Time Warner by 1.0% during the second quarter. First National Trust Co. now owns 24,938 shares of the media conglomerate’s stock valued at $2,504,000 after purchasing an additional 237 shares in the last quarter. 77.83% of the stock is currently owned by institutional investors.
About Time Warner
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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