Zacks Investment Research Upgrades Meredith Corporation (MDP) to Buy
Meredith Corporation (NYSE:MDP) was upgraded by Zacks Investment Research from a “sell” rating to a “buy” rating in a note issued to investors on Tuesday. The brokerage currently has a $59.00 price target on the stock. Zacks Investment Research‘s target price would indicate a potential upside of 12.49% from the stock’s current price.
According to Zacks, “Though shares of Meredith have underperformed the industry in the past six months, it is likely to turnaround in the near term due to earnings beat in first-quarter fiscal 2018. The company’s strategic initiatives particularly in digital space, brand licensing activities, solid portfolio of television stations and robust earnings surprise history reinforce its position as one of the leading media and marketing companies. The company remains optimistic to generate solid no-political adverting revenues in Local Media Group attributable to robust demand for automotive and professional services. However, waning print media trends due to shift from traditional advertising and stiff competition continues to pose concerns for investors. Meanwhile, earnings in both the second quarter and fiscal 2018 are anticipated to decline year over year as the fiscal 2017 benefited from record political advertising revenues.”
A number of other analysts also recently issued reports on MDP. Jefferies Group LLC reaffirmed a “hold” rating and set a $60.00 price objective on shares of Meredith Corporation in a report on Friday, July 7th. BidaskClub downgraded shares of Meredith Corporation from a “buy” rating to a “hold” rating in a report on Wednesday, July 12th. ValuEngine raised shares of Meredith Corporation from a “hold” rating to a “buy” rating in a report on Friday, August 4th. Finally, Wells Fargo & Company decreased their target price on shares of Meredith Corporation from $62.00 to $54.00 and set a “market perform” rating on the stock in a research report on Friday. Three equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. The company has an average rating of “Buy” and an average target price of $60.60.
Shares of Meredith Corporation (NYSE:MDP) traded up 1.24% on Tuesday, reaching $53.10. 120,530 shares of the company’s stock traded hands. The company’s 50-day moving average price is $54.36 and its 200 day moving average price is $56.67. Meredith Corporation has a one year low of $43.85 and a one year high of $66.25. The firm has a market cap of $2.37 billion, a P/E ratio of 12.76 and a beta of 1.23.
Meredith Corporation (NYSE:MDP) last posted its quarterly earnings data on Thursday, October 26th. The company reported $0.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.63 by $0.06. Meredith Corporation had a net margin of 11.04% and a return on equity of 18.24%. The company had revenue of $393.00 million during the quarter, compared to the consensus estimate of $397.50 million. During the same period in the previous year, the firm posted $0.75 EPS. The firm’s revenue was down 1.7% compared to the same quarter last year. On average, equities analysts forecast that Meredith Corporation will post $3.35 EPS for the current fiscal year.
In other Meredith Corporation news, insider Thomas H. Harty sold 10,363 shares of the business’s stock in a transaction dated Friday, August 4th. The shares were sold at an average price of $57.80, for a total value of $598,981.40. Following the transaction, the insider now owns 14,445 shares in the company, valued at $834,921. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Paul Karpowicz sold 5,894 shares of the business’s stock in a transaction dated Monday, August 14th. The shares were sold at an average price of $57.43, for a total transaction of $338,492.42. Following the completion of the transaction, the insider now owns 66,658 shares in the company, valued at approximately $3,828,168.94. The disclosure for this sale can be found here. Insiders sold 40,024 shares of company stock worth $2,279,679 in the last 90 days. Corporate insiders own 4.00% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the business. State Street Corp increased its position in shares of Meredith Corporation by 16.8% during the second quarter. State Street Corp now owns 4,938,340 shares of the company’s stock valued at $293,589,000 after buying an additional 710,721 shares during the period. BlackRock Inc. increased its position in shares of Meredith Corporation by 9.1% during the second quarter. BlackRock Inc. now owns 7,553,017 shares of the company’s stock valued at $449,025,000 after buying an additional 627,217 shares during the period. Vanguard Group Inc. increased its position in shares of Meredith Corporation by 14.5% during the first quarter. Vanguard Group Inc. now owns 3,549,468 shares of the company’s stock valued at $229,296,000 after buying an additional 450,150 shares during the period. Royce & Associates LP increased its position in shares of Meredith Corporation by 28.1% during the second quarter. Royce & Associates LP now owns 1,520,641 shares of the company’s stock valued at $90,402,000 after buying an additional 333,861 shares during the period. Finally, Systematic Financial Management LP increased its position in shares of Meredith Corporation by 904.1% during the second quarter. Systematic Financial Management LP now owns 297,323 shares of the company’s stock valued at $17,676,000 after buying an additional 267,713 shares during the period. Hedge funds and other institutional investors own 94.49% of the company’s stock.
About Meredith Corporation
Meredith Corporation is a diversified media company. The Company is focused primarily on the home and family marketplace. The Company operates through two segments: Local Media and National Media. As of June 30, 2016, the Company’s Local Media segment includes 16 owned television stations, one managed television station and related digital and mobile media operations.
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