Time Warner Inc. (NYSE:TWX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Shares of Time Warner have declined 0.8% in a month in line with that of the industry. Estimates have been also showing a downtrend ahead of the company’s third-quarter 2017 results, which clearly indicates that analysts are not optimistic about the company’s performance. Moreover, we note that third quarter earnings are likely to decline year over year. Time Warner, which accepted the buyout offer of AT&T, had earlier indicated that it expects Turner division's total advertising revenue to decline in the low single-digits in the quarter. Nevertheless, initiatives such as foraying into new markets and digital endeavors, and investments in video content and technology bode well. Additionally, we believe that investments in programming, production and marketing, along with focus on operating and capital efficiencies bode well. However, decline in overall advertising spending and currency headwinds may impact the performance.”
TWX has been the subject of a number of other reports. KeyCorp reiterated a “hold” rating on shares of Time Warner in a report on Tuesday. BidaskClub upgraded shares of Time Warner from a “hold” rating to a “buy” rating in a report on Tuesday, August 1st. Needham & Company LLC reaffirmed a “hold” rating on shares of Time Warner in a research report on Tuesday, September 26th. Jefferies Group LLC reaffirmed a “hold” rating and issued a $105.00 target price on shares of Time Warner in a research report on Wednesday, October 11th. Finally, Cowen and Company reaffirmed a “hold” rating and issued a $107.50 target price on shares of Time Warner in a research report on Thursday, October 12th. Two analysts have rated the stock with a sell rating, twenty-eight have assigned a hold rating and six have issued a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $102.91.
Shares of Time Warner (NYSE TWX) traded up 0.04% during mid-day trading on Tuesday, hitting $101.16. 1,902,361 shares of the stock were exchanged. The stock’s 50-day moving average is $102.08 and its 200-day moving average is $100.39. The stock has a market capitalization of $78.68 billion, a price-to-earnings ratio of 18.77 and a beta of 1.02. Time Warner has a 52 week low of $78.80 and a 52 week high of $103.90.
Time Warner (NYSE:TWX) last released its quarterly earnings results on Wednesday, August 2nd. The media conglomerate reported $1.33 EPS for the quarter, topping the Zacks’ consensus estimate of $1.19 by $0.14. The business had revenue of $7.33 billion during the quarter, compared to analysts’ expectations of $7.29 billion. Time Warner had a net margin of 14.10% and a return on equity of 19.14%. The business’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.29 EPS. Analysts forecast that Time Warner will post $6.10 earnings per share for the current fiscal year.
Several hedge funds have recently made changes to their positions in TWX. Vanguard Group Inc. boosted its stake in shares of Time Warner by 2.3% in the second quarter. Vanguard Group Inc. now owns 49,843,065 shares of the media conglomerate’s stock valued at $5,004,741,000 after buying an additional 1,116,818 shares in the last quarter. BlackRock Inc. raised its holdings in shares of Time Warner by 4.0% in the second quarter. BlackRock Inc. now owns 44,524,027 shares of the media conglomerate’s stock worth $4,470,656,000 after acquiring an additional 1,696,681 shares during the last quarter. State Street Corp raised its holdings in shares of Time Warner by 2.1% in the first quarter. State Street Corp now owns 32,749,966 shares of the media conglomerate’s stock worth $3,199,990,000 after acquiring an additional 688,860 shares during the last quarter. Dodge & Cox acquired a new position in shares of Time Warner in the fourth quarter worth $3,124,831,000. Finally, Capital World Investors raised its holdings in shares of Time Warner by 15.8% in the third quarter. Capital World Investors now owns 15,411,067 shares of the media conglomerate’s stock worth $1,226,875,000 after acquiring an additional 2,102,473 shares during the last quarter. Institutional investors own 79.16% of the company’s stock.
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 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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