According to Zacks, “Time Warner has outperformed the Zacks categorized industry in the past one year. The company’s initiatives such as foraying into new markets and digital endeavors bode well, as evident from its positive earnings surprise streak for more than 20 straight quarters, including an earnings beat of 5% in fourth-quarter 2016. The company's investments in video content and technology continued to show results. Further, Time Warner’s significant international presence has helped broaden client base and product portfolio. Additionally, we believe that investments in programming, production and marketing, along with focus on operating and capital efficiencies augur well. However, decline in overall advertising spending and currency headwinds may adversely impact performance. On the other hand, AT&T has agreed to acquire Time Warner in an $85.4 billion deal. This prompted the company to suspend its share repurchase program in Oct 2016.”
Several other research analysts also recently weighed in on the company. Moffett Nathanson downgraded Time Warner from a buy rating to a neutral rating in a research note on Wednesday, February 1st. Drexel Hamilton downgraded Time Warner from a buy rating to a hold rating in a research note on Thursday. They noted that the move was a valuation call. BMO Capital Markets restated a hold rating and issued a $108.00 price target on shares of Time Warner in a research note on Thursday. FBR & Co restated a buy rating on shares of Time Warner in a research note on Thursday. Finally, Evercore ISI upgraded Time Warner from a hold rating to a buy rating and set a $108.00 price target for the company in a research note on Tuesday, January 3rd. One research analyst has rated the stock with a sell rating, twenty-one have issued a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The company presently has a consensus rating of Hold and an average price target of $97.87.
Time Warner (NYSE:TWX) traded down 0.33% during midday trading on Monday, reaching $96.26. 288,855 shares of the company’s stock were exchanged. The stock has a market cap of $74.31 billion, a PE ratio of 19.43 and a beta of 1.09. The firm has a 50 day moving average of $95.80 and a 200-day moving average of $86.68. Time Warner has a 12 month low of $60.95 and a 12 month high of $97.35.
Time Warner (NYSE:TWX) last announced its quarterly earnings data on Wednesday, February 8th. The media conglomerate reported $1.25 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.19 by $0.06. The company earned $7.90 billion during the quarter, compared to the consensus estimate of $7.71 billion. Time Warner had a return on equity of 19.29% and a net margin of 13.39%. The firm’s revenue was up 11.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.06 EPS. On average, equities research analysts predict that Time Warner will post $5.95 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 15th. Stockholders of record on Tuesday, February 28th will be paid a $0.4025 dividend. This represents a $1.61 annualized dividend and a dividend yield of 1.67%. The ex-dividend date of this dividend is Friday, February 24th. Time Warner’s payout ratio is 32.59%.
A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Parkside Financial Bank & Trust boosted its position in shares of Time Warner by 11.6% in the third quarter. Parkside Financial Bank & Trust now owns 1,275 shares of the media conglomerate’s stock valued at $101,000 after buying an additional 133 shares in the last quarter. FTB Advisors Inc. boosted its position in shares of Time Warner by 8.5% in the third quarter. FTB Advisors Inc. now owns 1,426 shares of the media conglomerate’s stock valued at $112,000 after buying an additional 112 shares in the last quarter. Tradewinds Capital Management LLC boosted its position in shares of Time Warner by 64.7% in the third quarter. Tradewinds Capital Management LLC now owns 1,413 shares of the media conglomerate’s stock valued at $112,000 after buying an additional 555 shares in the last quarter. Cornerstone Advisors Inc. boosted its position in shares of Time Warner by 146.4% in the third quarter. Cornerstone Advisors Inc. now owns 1,491 shares of the media conglomerate’s stock valued at $119,000 after buying an additional 886 shares in the last quarter. Finally, Penserra Capital Management LLC boosted its position in shares of Time Warner by 94.2% in the third quarter. Penserra Capital Management LLC now owns 1,517 shares of the media conglomerate’s stock valued at $120,000 after buying an additional 736 shares in the last quarter. Institutional investors own 79.34% of the company’s stock.
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 domestic premium pay television and streaming services, and international premium pay, basic tier television services and streaming services, and Warner Bros., which consists of television, feature film, home video and videogame production and distribution.
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