Zacks Investment Research upgraded shares of Time Warner (NYSE:TWX) from a hold rating to a buy rating in a report issued on Tuesday morning. Zacks Investment Research currently has $107.00 price objective on the media conglomerate’s 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.”
Several other research analysts have also commented on TWX. Jefferies Group restated a hold rating and set a $105.00 price target on shares of Time Warner in a research report on Wednesday, October 11th. Cowen restated a hold rating and set a $107.50 price target on shares of Time Warner in a research report on Thursday, October 12th. FBR & Co lowered Time Warner from a buy rating to a neutral rating and raised their price target for the stock from $105.00 to $107.50 in a research report on Monday, October 16th. KeyCorp restated a hold rating on shares of Time Warner in a research report on Tuesday, October 17th. Finally, Royal Bank of Canada reiterated a hold rating and issued a $108.00 target price on shares of Time Warner in a report on Wednesday, October 18th. Seventeen analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. The stock has an average rating of Hold and an average target price of $104.36.
Time Warner (NYSE:TWX) last released its quarterly earnings results on Thursday, February 1st. The media conglomerate reported $1.60 EPS for the quarter, topping the consensus estimate of $1.44 by $0.16. Time Warner had a return on equity of 18.96% and a net margin of 16.78%. The business had revenue of $8.61 billion during the quarter, compared to analyst estimates of $8.41 billion. During the same period last year, the business posted $1.25 earnings per share. The company’s quarterly revenue was up 9.1% on a year-over-year basis. equities research analysts predict that Time Warner will post 7.24 EPS for the current year.
The business also recently announced a quarterly dividend, which was paid on Thursday, February 1st. Investors of record on Wednesday, January 10th were issued a $0.4025 dividend. The ex-dividend date of this dividend was Tuesday, January 9th. This represents a $1.61 dividend on an annualized basis and a yield of 1.73%. Time Warner’s dividend payout ratio (DPR) is presently 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 value of $390,646.80. Following the sale, the director now directly owns 44,959 shares in the company, valued at $4,370,014.80. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Olaf Olafsson sold 23,450 shares of the firm’s stock in a transaction on Thursday, December 14th. The shares were sold at an average price of $90.03, for a total value of $2,111,203.50. The disclosure for this sale can be found here. Over the last quarter, insiders sold 356,947 shares of company stock valued at $32,369,031. 0.16% of the stock is currently owned by company insiders.
Institutional investors have recently bought and sold shares of the business. Bank of Nova Scotia Trust Co. acquired a new stake in Time Warner in the third quarter valued at $102,000. Americafirst Capital Management LLC acquired a new stake in Time Warner in the third quarter valued at $106,000. Zions Bancorporation raised its stake in Time Warner by 698.6% in the third quarter. Zions Bancorporation now owns 1,142 shares of the media conglomerate’s stock valued at $117,000 after buying an additional 999 shares in the last quarter. Advisory Services Network LLC raised its stake in Time Warner by 1.8% in the second quarter. Advisory Services Network LLC now owns 1,439 shares of the media conglomerate’s stock valued at $144,000 after buying an additional 26 shares in the last quarter. Finally, Phocas Financial Corp. acquired a new stake in Time Warner in the second quarter valued at $172,000. Institutional investors own 77.55% of the company’s stock.
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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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