“We are increasing our target to $370 from $285 after NFLX reported better 1Q results and provided 2Q guidance implying minimal slowdown in growth. In our view, multiple consecutive strong domestic net additions quarters are being driven by bundling and incremental marketing, likely resetting terminal penetration to high end of 60-90M guide (assumption was low-mid end previously). Internationally, bundling and faster original content ramp offers opportunity to penetrate new market cohorts faster while TAM is likely to expand from fixed-broadband subs to mobile users. Recent pricing increase demonstrated inelasticity relative to sub acquisition, giving us confidence in $19/$14 US/Int’l 2025 ARPU estimate vs. $11/$10 in 1Q18.”,” the firm’s analyst commented.
Several other equities analysts also recently commented on the company. Pivotal Research downgraded Time Warner from a buy rating to a hold rating and decreased their target price for the company from $108.00 to $105.00 in a research report on Tuesday. Loop Capital began coverage on Time Warner in a research report on Thursday, March 15th. They issued a buy rating and a $107.50 target price on the stock. UBS raised Time Warner from a neutral rating to a buy rating and upped their target price for the company from $95.26 to $108.00 in a research report on Monday, March 12th. Zacks Investment Research raised Time Warner from a hold rating to a buy rating and set a $107.00 target price on the stock in a research report on Tuesday, February 6th. Finally, Barclays upped their target price on Time Warner from $100.00 to $101.00 and gave the company an overweight rating in a research report on Friday, February 2nd. Fifteen research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. The company presently has an average rating of Hold and a consensus price target of $104.44.
Time Warner (NYSE:TWX) last posted its earnings results on Thursday, February 1st. The media conglomerate reported $1.60 EPS for the quarter, beating the consensus estimate of $1.44 by $0.16. Time Warner had a return on equity of 18.96% and a net margin of 16.78%. The company had revenue of $8.61 billion for the quarter, compared to the consensus estimate of $8.41 billion. During the same quarter in the prior year, the business earned $1.25 earnings per share. The firm’s revenue for the quarter was up 9.1% on a year-over-year basis. analysts anticipate that Time Warner will post 7.68 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 1st. Investors of record on Tuesday, April 10th will be given a dividend of $0.4025 per share. The ex-dividend date of this dividend is Monday, April 9th. This represents a $1.61 dividend on an annualized basis and a yield of 1.65%. This is an increase from Time Warner’s previous quarterly dividend of $0.32. Time Warner’s dividend payout ratio is currently 25.08%.
In related news, Director Deborah C. Wright sold 4,019 shares of the stock in a transaction that occurred on Monday, February 12th. The stock was sold at an average price of $93.61, for a total transaction of $376,218.59. Following the sale, the director now owns 27,785 shares of the company’s stock, valued at $2,600,953.85. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.16% of the company’s stock.
Large investors have recently modified their holdings of the stock. Cheyne Capital Management UK LLP lifted its stake in Time Warner by 29.9% during the fourth quarter. Cheyne Capital Management UK LLP now owns 263,513 shares of the media conglomerate’s stock worth $24,135,000 after purchasing an additional 60,600 shares during the last quarter. First Trust Advisors LP lifted its stake in Time Warner by 26.5% during the fourth quarter. First Trust Advisors LP now owns 16,514 shares of the media conglomerate’s stock worth $1,511,000 after purchasing an additional 3,464 shares during the last quarter. Investors Research Corp bought a new stake in Time Warner during the fourth quarter worth $378,000. Narwhal Capital Management lifted its stake in Time Warner by 53.7% during the fourth quarter. Narwhal Capital Management now owns 31,925 shares of the media conglomerate’s stock worth $2,925,000 after purchasing an additional 11,160 shares during the last quarter. Finally, Opera Trading Capital bought a new stake in Time Warner during the fourth quarter worth $889,000. 80.87% of the stock is currently owned by institutional investors and hedge funds.
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Time Warner Company Profile
Time Warner Inc operates as a media and entertainment company in the United States and internationally. It operates through three segments: Turner, Home Box Office, and Warner Bros. The Turner segment creates and programs branded news, entertainment, sports, and kids multi-platform content for consumers.
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