Time Warner (TWX) Downgraded to “Sell” at Zacks Investment Research

Time Warner (NYSE:TWX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Friday.

According to Zacks, “Shares of Time Warner have declined and underperformed the industry in the past three months, after its takeover by AT&T hit a roadblock. The DOJ raised antitrust concerns over the merger, which was likely to conclude by the end of this year. However, keeping aside the issue we believe Time Warner’s foray into new markets and digital efforts, and investments in video content and technology bode well. The company witnessed robust subscription revenue growth at HBO and Turner during third-quarter 2017. Warner Bros. benefited from the success of It, Annabelle: Creation and others. However, management expects HBO’s programming cost to increase at a higher rate in the final quarter due to the timing of original programming and availability of acquired content. Further, operating income at Warner Bros. is also likely to fall in the quarter. Decline in overall advertising spending and currency headwinds may also impact the performance.”

Other research analysts have also recently issued research reports about the stock. Deutsche Bank reaffirmed a “buy” rating and issued a $99.00 target price on shares of Time Warner in a research report on Friday, November 10th. Rosenblatt Securities raised shares of Time Warner from a “neutral” rating to a “buy” rating and set a $103.00 target price on the stock in a research report on Monday, November 13th. Pivotal Research raised shares of Time Warner from a “hold” rating to a “buy” rating and upped their target price for the company from $102.00 to $103.00 in a research report on Monday, November 13th. raised shares of Time Warner from a “hold” rating to a “buy” rating and upped their target price for the company from $102.00 to $103.00 in a research report on Wednesday, November 15th. Finally, Guggenheim reaffirmed a “buy” rating on shares of Time Warner in a research report on Thursday, January 4th. One research analyst has rated the stock with a sell rating, nineteen have given a hold rating and nine have assigned a buy rating to the stock. The company currently has an average rating of “Hold” and an average target price of $105.13.

Time Warner (NYSE TWX) traded up $0.16 during midday trading on Friday, reaching $92.05. 3,067,871 shares of the company’s stock were exchanged, compared to its average volume of 4,907,400. Time Warner has a 52 week low of $85.88 and a 52 week high of $103.90. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.48 and a quick ratio of 1.26. The firm has a market capitalization of $71,620.00, a PE ratio of 17.50, a P/E/G ratio of 1.41 and a beta of 0.95.

Time Warner (NYSE:TWX) last posted its earnings results on Thursday, October 26th. The media conglomerate reported $1.82 EPS for the quarter, beating the Zacks’ consensus estimate of $1.59 by $0.23. Time Warner had a net margin of 13.59% and a return on equity of 18.57%. The company had revenue of $7.60 billion for the quarter, compared to analysts’ expectations of $7.40 billion. During the same quarter in the prior year, the company posted $1.83 earnings per share. Time Warner’s revenue for the quarter was up 6.0% compared to the same quarter last year. equities research analysts anticipate that Time Warner will post 6.2 EPS for the current fiscal year.

In other news, CEO Jeffrey L. Bewkes sold 329,478 shares of the stock in a transaction dated Thursday, December 7th. The shares were sold at an average price of $90.65, for a total transaction of $29,867,180.70. Following the sale, the chief executive officer now owns 855,925 shares of the company’s stock, valued at $77,589,601.25. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Olaf Olafsson sold 23,450 shares of the stock in a transaction dated Thursday, December 14th. The stock was sold at an average price of $90.03, for a total transaction of $2,111,203.50. The disclosure for this sale can be found here. 0.16% of the stock is currently owned by corporate insiders.

Several institutional investors and hedge funds have recently modified their holdings of the company. Jacobi Capital Management LLC increased its stake in shares of Time Warner by 2.1% during the second quarter. Jacobi Capital Management LLC now owns 995 shares of the media conglomerate’s stock worth $100,000 after buying an additional 20 shares during the period. Bank of Nova Scotia Trust Co. purchased a new stake in shares of Time Warner during the third quarter worth approximately $102,000. Americafirst Capital Management LLC purchased a new stake in shares of Time Warner during the third quarter worth approximately $106,000. Patriot Financial Group Insurance Agency LLC increased its stake in shares of Time Warner by 4.0% during the second quarter. Patriot Financial Group Insurance Agency LLC now owns 1,153 shares of the media conglomerate’s stock worth $116,000 after buying an additional 44 shares during the period. Finally, Zions Bancorporation increased its stake in shares of Time Warner by 698.6% during the third quarter. Zions Bancorporation now owns 1,142 shares of the media conglomerate’s stock worth $117,000 after buying an additional 999 shares during the period. 77.83% of the stock is currently owned by institutional investors and hedge funds.

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About Time Warner

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 premium pay television and over the top (OTT) services and premium pay, basic tier television and OTT services internationally, and Warner Bros., which consists of television, feature film, home video, and videogame production and distribution.

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