Viacom (VIAB) Upgraded to “Buy” at Zacks Investment Research

Share on StockTwits

Zacks Investment Research upgraded shares of Viacom (NASDAQ:VIAB) from a hold rating to a buy rating in a report issued on Friday morning. Zacks Investment Research currently has $37.00 target price on the stock.

According to Zacks, “Viacom’s effort to revive its fortunes is driving its shares, which have outperformed the industry on a year-to-date basis. The company is benefiting from increasing household subscriber growth in international business, driven by new channel launches in the United Kingdom and Poland. Additionally, Turnaround in Paramount and MTV divisions, expanding digital presence and international strength are key positives. The increase in audience for the flagship brands is another positive. Moreover, the operational efficiency of the company is reflected in its cost savings, which is anticipated to drive bottom-line growth. However, declining domestic affiliate and advertisement revenues remains a major concern.”

VIAB has been the subject of several other research reports. Macquarie raised shares of Viacom from a neutral rating to an outperform rating and raised their price objective for the stock from $34.00 to $37.00 in a research report on Thursday, September 20th. TheStreet raised shares of Viacom from a c+ rating to a b- rating in a research report on Friday, August 31st. BidaskClub downgraded shares of Viacom from a sell rating to a strong sell rating in a research report on Tuesday, September 11th. B. Riley raised shares of Viacom from a neutral rating to a buy rating and raised their price objective for the stock from $34.00 to $39.00 in a research report on Wednesday, September 26th. Finally, Pivotal Research raised shares of Viacom from a hold rating to a buy rating and reduced their price objective for the stock from $34.00 to $32.00 in a research report on Tuesday, July 31st. They noted that the move was a valuation call. Three research analysts have rated the stock with a sell rating, seventeen have given a hold rating and eight have assigned a buy rating to the company. The stock has an average rating of Hold and an average target price of $34.90.

Viacom stock traded up $0.20 during mid-day trading on Friday, hitting $31.39. 3,306,919 shares of the stock were exchanged, compared to its average volume of 3,630,018. The company has a debt-to-equity ratio of 1.42, a quick ratio of 1.41 and a current ratio of 1.69. Viacom has a 12 month low of $22.13 and a 12 month high of $35.55. The firm has a market cap of $13.60 billion, a price-to-earnings ratio of 8.33, a PEG ratio of 1.26 and a beta of 1.48.

Viacom (NASDAQ:VIAB) last released its quarterly earnings results on Thursday, August 9th. The company reported $1.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.07 by $0.11. The firm had revenue of $3.24 billion during the quarter, compared to analyst estimates of $3.27 billion. Viacom had a net margin of 15.65% and a return on equity of 23.53%. The company’s revenue was down 3.8% compared to the same quarter last year. During the same quarter last year, the business earned $1.17 EPS. As a group, equities research analysts predict that Viacom will post 4.09 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Monday, October 1st. Investors of record on Monday, September 17th were given a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 2.55%. The ex-dividend date was Friday, September 14th. Viacom’s payout ratio is currently 21.22%.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Mount Yale Investment Advisors LLC bought a new position in Viacom during the 1st quarter valued at $126,000. Nelson Van Denburg & Campbell Wealth Management Group LLC raised its stake in shares of Viacom by 36,808.3% during the 2nd quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC now owns 4,429 shares of the company’s stock worth $134,000 after purchasing an additional 4,417 shares during the period. Financial Gravity Wealth Inc. bought a new stake in shares of Viacom during the 1st quarter worth $197,000. Tocqueville Asset Management L.P. bought a new stake in shares of Viacom during the 2nd quarter worth $227,000. Finally, Lourd Capital LLC bought a new stake in shares of Viacom during the 3rd quarter worth $257,000. 79.02% of the stock is owned by institutional investors and hedge funds.

Viacom Company Profile

Viacom, Inc operates media brands that create entertainment content worldwide. The company creates television programs, motion pictures, short-form content, games, consumer products, podcasts, live events, and social media experiences. It operates through two segments, Media Networks and Filmed Entertainment.

Featured Article: Trading Strategy Methods and Types

Get a free copy of the Zacks research report on Viacom (VIAB)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Viacom (NASDAQ:VIAB)

Receive News & Ratings for Viacom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Viacom and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply