Zacks Investment Research cut shares of Time Warner Inc. (NYSE:TWX) from a buy rating to a hold rating in a report released on Monday.
According to Zacks, “Time Warner, which accepted the buyout offer of AT&T, has outpaced the industry in the past one year. The company’s initiatives such as foraying into new markets and digital endeavors, and investments in video content and technology bode well for the stock. This is evident from its positive earnings surprise streak for more than 20 straight quarters, including an earnings beat of 11.8% in second-quarter 2017. The company witnessed robust subscription revenue growth at Home Box Office and Turner, while Warner Bros. benefited from the success of Wonder Woman. Further, Time Warner’s significant international presence has helped broaden client base and product portfolio. Additionally, we believe that investments in programming, production and marketing, along with focus on operating and capital efficiencies augur well. However, decline in overall advertising spending and currency headwinds may impact the performance.”
Several other analysts have also recently issued reports on the company. Evercore ISI cut Time Warner from an outperform rating to an in-line rating and set a $108.00 target price on the stock. in a research report on Monday. Barclays PLC cut Time Warner from an overweight rating to an equal weight rating and increased their target price for the company from $95.00 to $107.00 in a research report on Friday, August 4th. Cowen and Company reaffirmed a hold rating and set a $107.50 target price on shares of Time Warner in a research report on Thursday, August 3rd. Jefferies Group LLC cut Time Warner from a buy rating to a hold rating and set a $105.00 target price on the stock. in a research report on Thursday, August 3rd. Finally, BidaskClub raised Time Warner from a hold rating to a buy rating in a research report on Tuesday, August 1st. One research analyst has rated the stock with a sell rating, twenty-five have issued a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $102.25.
Time Warner (NYSE:TWX) opened at 102.28 on Monday. The firm’s 50-day moving average price is $100.71 and its 200-day moving average price is $98.80. The stock has a market cap of $79.47 billion, a PE ratio of 18.96 and a beta of 1.05. Time Warner has a 52 week low of $74.27 and a 52 week high of $103.34.
Time Warner (NYSE:TWX) last announced its earnings results on Wednesday, August 2nd. The media conglomerate reported $1.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.14. The business had revenue of $7.33 billion for the quarter, compared to analysts’ expectations of $7.29 billion. Time Warner had a return on equity of 19.14% and a net margin of 14.10%. The business’s revenue for the quarter was up 5.4% on a year-over-year basis. During the same quarter last year, the firm earned $1.29 EPS. Equities analysts predict that Time Warner will post $6.09 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 1st. Stockholders of record on Monday, July 10th were given a dividend of $0.4025 per share. This represents a $1.61 dividend on an annualized basis and a dividend yield of 1.57%. The ex-dividend date was Thursday, July 6th. Time Warner’s dividend payout ratio (DPR) is presently 29.98%.
In other Time Warner news, CFO Howard M. Averill bought 255 shares of the company’s stock in a transaction dated Thursday, June 15th. The shares were purchased at an average cost of $99.67 per share, for a total transaction of $25,415.85. Following the transaction, the chief financial officer now directly owns 63,399 shares of the company’s stock, valued at $6,318,978.33. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. 0.16% of the stock is owned by company insiders.
Several large investors have recently bought and sold shares of TWX. BlackRock Inc. boosted its stake in Time Warner by 2,169.2% in the first quarter. BlackRock Inc. now owns 42,827,346 shares of the media conglomerate’s stock worth $4,184,660,000 after buying an additional 40,940,053 shares during the period. Canyon Capital Advisors LLC boosted its stake in Time Warner by 397.0% in the first quarter. Canyon Capital Advisors LLC now owns 5,695,848 shares of the media conglomerate’s stock worth $556,541,000 after buying an additional 4,549,848 shares during the period. OZ Management LP boosted its stake in Time Warner by 98.2% in the first quarter. OZ Management LP now owns 6,243,467 shares of the media conglomerate’s stock worth $610,049,000 after buying an additional 3,093,353 shares during the period. Renaissance Technologies LLC boosted its stake in Time Warner by 4,979.0% in the first quarter. Renaissance Technologies LLC now owns 2,678,334 shares of the media conglomerate’s stock worth $261,700,000 after buying an additional 2,625,600 shares during the period. Finally, Canada Pension Plan Investment Board boosted its stake in Time Warner by 624.8% in the second quarter. Canada Pension Plan Investment Board now owns 2,044,346 shares of the media conglomerate’s stock worth $205,273,000 after buying an additional 1,762,300 shares during the period. Hedge funds and other institutional investors own 80.02% of the company’s stock.
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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