CBS (CBS) Downgraded to “Sell” at Zacks Investment Research

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Zacks Investment Research downgraded shares of CBS (NYSE:CBS) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.

According to Zacks, “CBS is gaining from the contribution from Network Ten, which the company acquired in fourth-quarter of 2017. A surge in retransmission revenues and fees from CBS Television Network is also a positive. The company is benefiting from strong demand for content, rise in retransmission rates and expansion of direct-to-consumer business. For the third quarter, CBS expects Local Media revenues to increase at a double-digit rate as mid-term elections are coming closer. However, currency fluctuations and higher expenditure for original programming might prove to be a drag.  Shares have underperformed the industry on a year-to-date basis.”

CBS has been the subject of several other reports. Royal Bank of Canada set a $63.00 price objective on CBS and gave the stock a buy rating in a research report on Friday, August 3rd. Argus cut CBS from a buy rating to a hold rating in a research report on Tuesday, August 7th. UBS Group cut CBS from a buy rating to a neutral rating and reduced their price objective for the stock from $72.00 to $60.00 in a research report on Monday, September 10th. ValuEngine cut CBS from a sell rating to a strong sell rating in a research report on Monday, July 30th. Finally, Barrington Research reaffirmed a buy rating and set a $73.00 price objective on shares of CBS in a research report on Monday, September 10th. One analyst has rated the stock with a sell rating, eleven have given a hold rating and fifteen have given a buy rating to the company’s stock. The company has an average rating of Buy and a consensus price target of $65.86.

NYSE:CBS opened at $54.32 on Tuesday. CBS has a 1 year low of $47.54 and a 1 year high of $61.59. The company has a quick ratio of 1.10, a current ratio of 1.60 and a debt-to-equity ratio of 4.37. The stock has a market capitalization of $21.60 billion, a price-to-earnings ratio of 12.96, a price-to-earnings-growth ratio of 0.72 and a beta of 1.36.

CBS (NYSE:CBS) last posted its earnings results on Thursday, August 2nd. The media conglomerate reported $1.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.11 by $0.01. CBS had a return on equity of 81.10% and a net margin of 10.21%. The firm had revenue of $3.47 billion during the quarter, compared to analysts’ expectations of $3.46 billion. During the same period in the previous year, the firm earned $1.04 earnings per share. The company’s revenue was up 6.4% on a year-over-year basis. As a group, equities research analysts anticipate that CBS will post 5.24 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Monday, October 1st. Investors of record on Monday, September 10th were issued a dividend of $0.18 per share. The ex-dividend date was Friday, September 7th. This represents a $0.72 annualized dividend and a yield of 1.33%. CBS’s payout ratio is presently 17.18%.

In related news, EVP Anthony G. Ambrosio sold 3,449 shares of the company’s stock in a transaction dated Tuesday, October 9th. The stock was sold at an average price of $57.67, for a total transaction of $198,903.83. Following the sale, the executive vice president now owns 72,702 shares in the company, valued at $4,192,724.34. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Anthony G. Ambrosio sold 11,697 shares of the company’s stock in a transaction dated Friday, September 28th. The stock was sold at an average price of $57.53, for a total value of $672,928.41. Following the sale, the executive vice president now owns 80,950 shares in the company, valued at approximately $4,657,053.50. The disclosure for this sale can be found here. Insiders have sold 32,925 shares of company stock worth $1,882,469 in the last quarter. 1.80% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Klingenstein Fields & Co. LLC raised its holdings in CBS by 6.1% during the second quarter. Klingenstein Fields & Co. LLC now owns 445,675 shares of the media conglomerate’s stock worth $25,056,000 after acquiring an additional 25,649 shares in the last quarter. Inverness Counsel LLC NY bought a new stake in CBS during the second quarter worth about $4,541,000. Natixis raised its holdings in CBS by 4,631.2% during the first quarter. Natixis now owns 165,543 shares of the media conglomerate’s stock worth $8,507,000 after acquiring an additional 162,044 shares in the last quarter. Mathes Company Inc. bought a new stake in CBS during the second quarter worth about $250,000. Finally, Greenleaf Trust bought a new stake in CBS during the second quarter worth about $240,000. Institutional investors and hedge funds own 74.89% of the company’s stock.

About CBS

CBS Corporation operates as a mass media company worldwide. The company operates through four segments: Entertainment, Cable Networks, Publishing, and Local Media. The Entertainment segment distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; produces, acquires, and/or distributes programming, including series, specials, news, and public affairs; operates online content networks for information and entertainment; produces, acquires, and distributes theatrical motion pictures; and digital streaming services.

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