Zacks Investment Research Lowers The New York Times Co. (NYT) to Sell
According to Zacks, “After seven straight quarters of earnings beat, The New York Times Company succumbed to a negative earnings surprise in second-quarter 2016, wherein its bottom line declined on a year-over-year basis. Total revenue also slid and fell short of the estimate. The quarter marked an increase in digital subscribers and a rise in circulation revenue but witnessed decline across print and digital advertising revenues. Total advertising revenue fell 11.7% during the quarter. Management expects total advertising revenue to decline in the mid-single digits in the third quarter. However, it projects solid revenue growth from both digital advertising and digital consumer business in the third quarter. The company is diversifying its business, adding new revenue streams, strengthening its balance sheet and restructuring its portfolio. It had offloaded assets in order to re-focus on its core newspapers and pay more attention to its online activities.”
A number of other brokerages have also weighed in on NYT. TheStreet raised shares of The New York Times from a hold rating to a buy rating in a report on Thursday, August 4th. Jefferies Group reaffirmed a hold rating and issued a $13.00 price objective on shares of The New York Times in a research note on Friday, July 29th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the stock. The New York Times presently has a consensus rating of Hold and a consensus target price of $13.60.
Shares of The New York Times (NYSE:NYT) opened at 12.02 on Monday. The firm has a market capitalization of $1.94 billion, a P/E ratio of 37.10 and a beta of 1.62. The firm’s 50-day moving average is $12.60 and its 200 day moving average is $12.46. The New York Times has a 52 week low of $11.45 and a 52 week high of $14.27.
The New York Times (NYSE:NYT) last issued its quarterly earnings results on Thursday, July 28th. The company reported $0.11 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.11. The business earned $372.60 million during the quarter, compared to analyst estimates of $377.15 million. The New York Times had a net margin of 3.36% and a return on equity of 13.70%. The New York Times’s revenue for the quarter was down 2.7% compared to the same quarter last year. During the same quarter last year, the business posted $0.13 earnings per share. Equities research analysts forecast that The New York Times will post $0.58 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 20th. Shareholders of record on Wednesday, October 5th will be paid a $0.04 dividend. The ex-dividend date of this dividend is Monday, October 3rd. This represents a $0.16 dividend on an annualized basis and a yield of 1.33%. The New York Times’s payout ratio is presently 50.00%.
In other news, EVP Kenneth A. Richieri sold 24,942 shares of The New York Times stock in a transaction on Thursday, August 18th. The shares were sold at an average price of $12.95, for a total transaction of $322,998.90. Following the transaction, the executive vice president now directly owns 50,203 shares of the company’s stock, valued at $650,128.85. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Levien Meredith A. Kopit sold 26,728 shares of The New York Times stock in a transaction on Thursday, August 25th. The stock was sold at an average price of $13.06, for a total transaction of $349,067.68. The disclosure for this sale can be found here. 6.20% of the stock is currently owned by company insiders.
Institutional investors have recently made changes to their positions in the company. Public Employees Retirement System of Ohio boosted its position in shares of The New York Times by 6.7% in the second quarter. Public Employees Retirement System of Ohio now owns 8,226 shares of the company’s stock worth $100,000 after buying an additional 517 shares in the last quarter. Fuller & Thaler Asset Management Inc. purchased a new position in shares of The New York Times during the second quarter worth $109,000. Barclays PLC boosted its position in shares of The New York Times by 235.4% in the second quarter. Barclays PLC now owns 9,919 shares of the company’s stock worth $120,000 after buying an additional 6,962 shares in the last quarter. LMR Partners LLP purchased a new position in shares of The New York Times during the second quarter worth $125,000. Finally, Pacad Investment Ltd. purchased a new position in shares of The New York Times during the second quarter worth $125,000. 62.86% of the stock is currently owned by institutional investors.
The New York Times Company Profile
The New York Times Company is a media organization focused on creating, collecting and distributing news and information. The Company includes newspapers, digital businesses and investments. Its businesses include newspapers, such as The New York Times; the International New York Times (INYT), the international edition of The Times; Websites, including NYTimes.com and international.nytimes.com; mobile applications, including The Times’s news applications, as well as interest-specific applications, such as NYT Cooking, Crossword and others, and related businesses, such as The Times news services division, digital archive distribution, NYT Live, and other products and services under The Times brand.
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