Zacks Investment Research Downgrades Time Warner Inc. (TWX) to Hold
Time Warner Inc. (NYSE:TWX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Time Warner’s initiatives such as foraying into new markets and digital endeavors bode well. This is quite evident from positive earnings surprise streak in the last 18 quarters, including earnings beat of 11.2% in second-quarter 2016. The company's investments in video content and technology continued to show results. Share repurchase activity and lower effective tax rate also provided cushion to the bottom line. Better-than-expected results prompted management to raise its full year earnings projection. Additionally, we believe that the company's investments in programming, production and marketing, coupled with its focus on operating and capital efficiencies augur well. However, decline in overall advertising spending and currency headwinds may adversely impact the company’s performance. Moreover, management expects to face tough comparisons in video games and TV licensing at Warner Bros. during the third quarter.”
Other equities analysts also recently issued reports about the company. Albert Fried & Company reiterated a “buy” rating and issued a $90.00 price target on shares of Time Warner in a research note on Wednesday, August 3rd. Brean Capital reiterated a “buy” rating on shares of Time Warner in a research note on Tuesday, July 26th. Vetr downgraded Time Warner from a “strong-buy” rating to a “buy” rating and set a $84.06 price target for the company. in a research note on Thursday, July 7th. Moffett Nathanson reiterated a “buy” rating and issued a $87.00 price target on shares of Time Warner in a research note on Thursday, July 7th. Finally, Goldman Sachs Group Inc. reiterated a “buy” rating on shares of Time Warner in a research note on Wednesday, July 6th. Eleven equities research analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus price target of $86.11.
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Time Warner (NYSE:TWX) traded up 0.729% on Tuesday, hitting $79.415. The stock had a trading volume of 464,029 shares. The stock has a market cap of $61.77 billion, a P/E ratio of 15.801 and a beta of 1.21. Time Warner has a one year low of $55.53 and a one year high of $81.33. The company’s 50-day moving average is $78.08 and its 200-day moving average is $76.30.
Time Warner (NYSE:TWX) last announced its earnings results on Wednesday, August 3rd. The media conglomerate reported $1.29 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.13. The company earned $7 billion during the quarter, compared to the consensus estimate of $7.12 billion. Time Warner had a return on equity of 17.33% and a net margin of 14.54%. The company’s revenue was down 5.4% on a year-over-year basis. During the same period last year, the firm earned $1.25 earnings per share. On average, analysts anticipate that Time Warner will post $5.42 earnings per share for the current fiscal year.
In other Time Warner news, insider Karen Magee sold 14,240 shares of the business’s stock in a transaction on Thursday, August 25th. The shares were sold at an average price of $79.97, for a total transaction of $1,138,772.80. Following the completion of the transaction, the insider now owns 7,461 shares of the company’s stock, valued at approximately $596,656.17. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Paul T. Cappuccio sold 56,595 shares of the business’s stock in a transaction on Wednesday, September 7th. The stock was sold at an average price of $78.24, for a total transaction of $4,427,992.80. Following the transaction, the executive vice president now directly owns 157,877 shares of the company’s stock, valued at approximately $12,352,296.48. The disclosure for this sale can be found here. Company insiders own 0.16% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TWX. RidgeWorth Capital Management LLC raised its position in Time Warner by 35.9% in the second quarter. RidgeWorth Capital Management LLC now owns 1,502 shares of the media conglomerate’s stock worth $112,000 after buying an additional 397 shares in the last quarter. Thompson Davis & CO. Inc. raised its position in shares of Time Warner by 205.1% in the second quarter. Thompson Davis & CO. Inc. now owns 1,553 shares of the media conglomerate’s stock worth $114,000 after buying an additional 1,044 shares in the last quarter. City Holding Co. raised its position in shares of Time Warner by 2.3% in the second quarter. City Holding Co. now owns 1,592 shares of the media conglomerate’s stock worth $117,000 after buying an additional 36 shares in the last quarter. Thompson Siegel & Walmsley LLC raised its position in shares of Time Warner by 34.3% in the second quarter. Thompson Siegel & Walmsley LLC now owns 1,636 shares of the media conglomerate’s stock worth $120,000 after buying an additional 418 shares in the last quarter. Finally, Assetmark Inc. raised its position in shares of Time Warner by 29.4% in the second quarter. Assetmark Inc. now owns 1,678 shares of the media conglomerate’s stock worth $123,000 after buying an additional 381 shares in the last quarter. 80.68% of the stock is owned by hedge funds and other institutional investors.
Time Warner Company Profile
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 domestic premium pay television and streaming services, and international premium pay, basic tier television services and streaming services, and Warner Bros., which consists of television, feature film, home video and videogame production and distribution.
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