Time Warner (NYSE:TWX) Downgraded by Zacks Investment Research to “Sell”

Time Warner (NYSE:TWX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Friday, January 12th.

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 issued reports on the stock. Deutsche Bank reissued a “buy” rating and issued a $99.00 price target on shares of Time Warner in a research note on Friday, November 10th. Loop Capital dropped their price target on shares of Time Warner from $107.50 to $102.00 and set a “hold” rating on the stock in a research note on Thursday, November 9th. Wells Fargo & Co reissued a “market perform” rating and issued a $84.00 price target (down previously from $100.00) on shares of Time Warner in a research note on Tuesday, November 21st. Cowen reissued a “hold” rating and issued a $102.00 price target on shares of Time Warner in a research note on Friday, October 27th. Finally, Barclays lifted their target price on shares of Time Warner from $92.00 to $107.00 and gave the stock an “equal weight” rating in a research note on Tuesday, November 21st. One equities research analyst has rated the stock with a sell rating, nineteen have assigned a hold rating and nine have assigned a buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $105.13.

Time Warner (TWX) traded up $0.39 during trading hours on Friday, hitting $93.36. 5,419,409 shares of the stock traded hands, compared to its average volume of 4,950,000. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.26 and a current ratio of 1.48. The stock has a market cap of $72,690.00, a price-to-earnings ratio of 17.75, a price-to-earnings-growth ratio of 1.40 and a beta of 0.95. Time Warner has a 52-week low of $85.88 and a 52-week high of $103.90.

Time Warner (NYSE:TWX) last posted its earnings results on Thursday, October 26th. The media conglomerate reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.59 by $0.23. The firm had revenue of $7.60 billion during the quarter, compared to analyst estimates 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 in the previous year, the firm earned $1.83 EPS. equities research analysts forecast that Time Warner will post 6.2 EPS for the current year.

In related news, insider Olaf Olafsson sold 23,450 shares of the business’s stock in a transaction dated 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 document filed with the SEC, which can be accessed through the SEC website. Also, CEO Jeffrey L. Bewkes sold 329,478 shares of the business’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 completion of the sale, the chief executive officer now 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 currently owned by insiders.

A number of institutional investors and hedge funds have recently modified their holdings of TWX. Beach Investment Management LLC. purchased a new stake in Time Warner during the second quarter worth about $3,859,000. IndexIQ Advisors LLC increased its stake in Time Warner by 53.1% during the second quarter. IndexIQ Advisors LLC now owns 190,987 shares of the media conglomerate’s stock worth $19,177,000 after purchasing an additional 66,261 shares during the period. Keybank National Association OH increased its stake in Time Warner by 8.3% during the second quarter. Keybank National Association OH now owns 177,744 shares of the media conglomerate’s stock worth $17,847,000 after purchasing an additional 13,657 shares during the period. Patriot Financial Group Insurance Agency LLC increased its stake 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 during the period. Finally, Homrich & Berg increased its stake in Time Warner by 6.8% during the second quarter. Homrich & Berg now owns 39,602 shares of the media conglomerate’s stock worth $3,976,000 after purchasing an additional 2,515 shares during the period. Hedge funds and other institutional investors own 77.82% of the company’s stock.

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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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