Twenty-First Century Fox Inc. (FOXA) Rating Lowered to Strong Sell at Zacks Investment Research
Twenty-First Century Fox Inc. (NASDAQ:FOXA) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Wednesday.
According to Zacks, “Increase in programming costs and fluctuation in foreign currency exchange rate continues to act as a headwind for Twenty-First Century Fox. In the fourth-quarter of fiscal 2016, the company expenses rose 15% primarily due to hiked sports programming costs owing to soccer rights costs at FNG International as well as Major League Baseball and streaming rights costs at the RSNs. The company expects costs at Cable Network to go up in fiscal 2017. Increase in expenses may dent the company’s margins and in turn the bottom line in the coming quarters. On the brighter side, Twenty-First Century Fox’s Cable Network Programming has been driving the company’s performance owing to rising affiliate fees. The company said that the pace of affiliate fees will accelerate in the back half of the fiscal year as 15%–20% of the company’s domestic subscribers will be up for annual renewal in the couple of years.”
FOXA has been the topic of several other reports. Royal Bank Of Canada dropped their price objective on Twenty-First Century Fox from $36.00 to $32.00 and set an “outperform” rating on the stock in a research report on Thursday, August 4th. Nomura reaffirmed a “buy” rating on shares of Twenty-First Century Fox in a research report on Saturday, July 9th. Morgan Stanley reaffirmed an “overweight” rating on shares of Twenty-First Century Fox in a research report on Friday, May 27th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Twenty-First Century Fox in a research report on Friday, June 17th. Finally, Brean Capital initiated coverage on Twenty-First Century Fox in a research report on Wednesday, July 6th. They set a “hold” rating on the stock. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating and eighteen have assigned a buy rating to the company. Twenty-First Century Fox has an average rating of “Buy” and a consensus target price of $31.61.
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Twenty-First Century Fox (NASDAQ:FOXA) opened at 23.89 on Wednesday. The stock has a market cap of $44.50 billion, a price-to-earnings ratio of 16.87 and a beta of 1.33. The firm’s 50-day moving average price is $24.90 and its 200-day moving average price is $27.61. Twenty-First Century Fox has a 12-month low of $22.66 and a 12-month high of $31.40.
Twenty-First Century Fox (NASDAQ:FOXA) last released its quarterly earnings data on Wednesday, August 3rd. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.37 by $0.08. Twenty-First Century Fox had a return on equity of 21.63% and a net margin of 10.08%. The company had revenue of $6.65 billion for the quarter, compared to analysts’ expectations of $6.68 billion. During the same period last year, the firm posted $0.39 earnings per share. Twenty-First Century Fox’s revenue was up 7.1% compared to the same quarter last year. On average, equities analysts predict that Twenty-First Century Fox will post $1.92 EPS for the current fiscal year.
The business also recently announced a dividend, which will be paid on Wednesday, October 19th. Stockholders of record on Wednesday, September 14th will be issued a $0.18 dividend. This is a boost from Twenty-First Century Fox’s previous dividend of $0.15. The ex-dividend date is Monday, September 12th. Twenty-First Century Fox’s payout ratio is 25.35%.
Several institutional investors have recently made changes to their positions in the company. Zurich Insurance Group Ltd FI boosted its position in shares of Twenty-First Century Fox by 48.4% in the first quarter. Zurich Insurance Group Ltd FI now owns 182,966 shares of the company’s stock worth $5,101,000 after buying an additional 59,715 shares during the period. Raymond James Trust N.A. boosted its position in Twenty-First Century Fox by 3.7% in the second quarter. Raymond James Trust N.A. now owns 9,368 shares of the company’s stock worth $254,000 after buying an additional 336 shares during the last quarter. Private Bank & Trust Co. boosted its position in Twenty-First Century Fox by 4.5% in the second quarter. Private Bank & Trust Co. now owns 11,075 shares of the company’s stock worth $300,000 after buying an additional 475 shares during the last quarter. Boothbay Fund Management LLC boosted its position in Twenty-First Century Fox by 81.0% in the first quarter. Boothbay Fund Management LLC now owns 50,520 shares of the company’s stock worth $1,408,000 after buying an additional 22,605 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. acquired a new position in Twenty-First Century Fox during the first quarter worth about $46,777,000. Hedge funds and other institutional investors own 53.31% of the company’s stock.
About Twenty-First Century Fox
Twenty-First Century Fox, Inc is a media and entertainment company. The Company operates through segments: Cable Network Programming, Television, Filmed Entertainment, and Other, Corporate and Eliminations. The Company produces and licenses news, business news, sports, general entertainment, factual entertainment and movie programming for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunications companies and online video distributors in the United States and internationally.
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