Recent Research Analysts’ Ratings Changes for Time Warner (TWX)

Several analysts have recently updated their ratings and price targets for Time Warner (NYSE: TWX):

  • 2/6/2018 – Time Warner was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $107.00 price target on the stock. According to Zacks, “Time Warner’s foray into new markets and digital efforts, and investments in video content and technology bode well. This is evident from positive earnings surprise streak of more than 20 straight quarters, including an earnings beat of 11.1% in fourth-quarter 2017. The company witnessed robust subscription revenue growth at HBO and Turner during the quarter. The company is now focusing on original programming, cost containment and increasing investments in key areas to enhance profitability. The impressive quarterly performance has led the stock to increase and outpace the industry in a month. However, management’s projection of decline in operating income across its segments in first-quarter 2018 raises concern. The company also expects HBO’s content and other revenues to decline considerably in the quarter. Moreover, its takeover by AT&T hit a roadblock due to DOJ’s antitrust concerns.”
  • 2/2/2018 – Time Warner had its price target raised by analysts at Barclays PLC from $100.00 to $101.00. They now have an “overweight” rating on the stock.
  • 2/2/2018 – Time Warner was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.
  • 2/1/2018 – Time Warner had its “buy” rating reaffirmed by analysts at Pivotal Research. They now have a $108.00 price target on the stock. They wrote, “We value TWX based on the valuation embedded in AT&T’s proposed acquisition.””
  • 1/31/2018 – Time Warner was upgraded by analysts at Moffett Nathanson from a “neutral” rating to a “buy” rating.
  • 1/23/2018 – Time Warner was given a new $100.00 price target on by analysts at Barclays PLC. They now have a “hold” rating on the stock.
  • 1/12/2018 – Time Warner was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. 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.”
  • 1/9/2018 – Time Warner had its “buy” rating reaffirmed by analysts at Pivotal Research. They now have a $108.00 price target on the stock, up previously from $103.00.
  • 1/6/2018 – Time Warner was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. 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.”
  • 1/4/2018 – Time Warner had its “buy” rating reaffirmed by analysts at Guggenheim.
  • 1/4/2018 – Time Warner had its “market perform” rating reaffirmed by analysts at Wells Fargo & Co. They now have a $98.00 price target on the stock, up previously from $84.00.

Shares of Time Warner Inc (NYSE:TWX) opened at $92.40 on Monday. Time Warner Inc has a 52 week low of $85.88 and a 52 week high of $103.90. The company has a market capitalization of $71,940.00, a price-to-earnings ratio of 17.02, a P/E/G ratio of 1.24 and a beta of 0.94. The company has a quick ratio of 0.91, a current ratio of 1.08 and a debt-to-equity ratio of 0.64.

Time Warner (NYSE:TWX) last announced its quarterly earnings results on Thursday, February 1st. The media conglomerate reported $1.60 EPS for the quarter, topping analysts’ consensus estimates of $1.44 by $0.16. Time Warner had a return on equity of 18.96% and a net margin of 16.78%. The company had revenue of $8.61 billion during the quarter, compared to analyst estimates of $8.41 billion. During the same quarter last year, the firm posted $1.25 earnings per share. The firm’s revenue was up 9.1% on a year-over-year basis. analysts expect that Time Warner Inc will post 7.56 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 1st. Investors of record on Wednesday, January 10th were paid a $0.4025 dividend. This represents a $1.61 dividend on an annualized basis and a yield of 1.74%. The ex-dividend date of this dividend was Tuesday, January 9th. Time Warner’s payout ratio is 29.65%.

In other Time Warner news, Director William P. Barr sold 4,019 shares of the firm’s stock in a transaction on Monday, February 5th. The stock was sold at an average price of $97.20, for a total transaction of $390,646.80. Following the completion of the transaction, the director now owns 44,959 shares of the company’s stock, valued at $4,370,014.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Jeffrey L. Bewkes sold 329,478 shares of the firm’s stock in a transaction on Thursday, December 7th. The shares were sold at an average price of $90.65, for a total value of $29,867,180.70. Following the transaction, the chief executive officer now directly owns 855,925 shares of the company’s stock, valued at approximately $77,589,601.25. The disclosure for this sale can be found here. Insiders sold 356,947 shares of company stock valued at $32,369,031 in the last ninety days. 0.16% of the stock is currently owned by insiders.

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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