Zacks Investment Research upgraded shares of Time Warner (NYSE:TWX) from a sell rating to a hold rating in a research report released on Saturday, January 6th.
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.”
Several other research firms have also recently issued reports on TWX. Royal Bank of Canada reissued a hold rating and set a $102.00 target price on shares of Time Warner in a research note on Friday, October 27th. B. Riley reissued a hold rating and set a $101.00 target price on shares of Time Warner in a research note on Tuesday, November 21st. BMO Capital Markets reissued a hold rating and set a $108.00 target price on shares of Time Warner in a research note on Wednesday, September 13th. KeyCorp reaffirmed a hold rating on shares of Time Warner in a research note on Tuesday, October 17th. Finally, raised Time Warner from a hold rating to a buy rating and upped their price target for the stock from $102.00 to $103.00 in a research note on Wednesday, November 15th. One equities research analyst has rated the stock with a sell rating, nineteen have assigned a hold rating and nine have given a buy rating to the company. The stock presently has an average rating of Hold and an average price target of $105.13.
Time Warner (NYSE:TWX) last announced its quarterly earnings data on Thursday, October 26th. The media conglomerate reported $1.82 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.59 by $0.23. Time Warner had a return on equity of 18.57% and a net margin of 13.59%. The firm had revenue of $7.60 billion during the quarter, compared to the consensus estimate of $7.40 billion. During the same quarter in the previous year, the company posted $1.83 earnings per share. The business’s revenue was up 6.0% on a year-over-year basis. analysts predict that Time Warner will post 6.2 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, February 1st. Stockholders of record on Wednesday, January 10th will be issued a dividend of $0.4025 per share. This represents a $1.61 dividend on an annualized basis and a dividend yield of 1.75%. The ex-dividend date of this dividend is Tuesday, January 9th. Time Warner’s payout ratio is currently 30.61%.
In other Time Warner news, insider Olaf Olafsson sold 23,450 shares of the stock in a transaction dated Thursday, December 14th. The stock was sold at an average price of $90.03, for a total value of $2,111,203.50. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Jeffrey L. Bewkes sold 329,478 shares of the stock in a transaction dated Thursday, December 7th. The shares were sold at an average price of $90.65, for a total value of $29,867,180.70. Following the completion of the transaction, the chief executive officer now directly owns 855,925 shares in the company, valued at approximately $77,589,601.25. The disclosure for this sale can be found here. Corporate insiders own 0.16% of the company’s stock.
Hedge funds have recently bought and sold shares of the business. Whittier Trust Co. increased its position in Time Warner by 3.2% in the third quarter. Whittier Trust Co. now owns 49,180 shares of the media conglomerate’s stock worth $5,038,000 after buying an additional 1,513 shares in the last quarter. Longfellow Investment Management Co. LLC purchased a new stake in Time Warner in the third quarter worth about $12,294,000. GABELLI & Co INVESTMENT ADVISERS INC. grew its position in shares of Time Warner by 10.7% during the third quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 373,956 shares of the media conglomerate’s stock worth $38,312,000 after purchasing an additional 36,200 shares in the last quarter. Swiss National Bank grew its position in shares of Time Warner by 1.9% during the third quarter. Swiss National Bank now owns 3,052,408 shares of the media conglomerate’s stock worth $312,719,000 after purchasing an additional 56,000 shares in the last quarter. Finally, Principal Financial Group Inc. grew its position in shares of Time Warner by 20.3% during the third quarter. Principal Financial Group Inc. now owns 1,894,880 shares of the media conglomerate’s stock worth $194,130,000 after purchasing an additional 319,196 shares in the last quarter. 77.82% of the stock is currently owned by institutional investors.
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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