The New York Times Co. (NYSE:NYT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
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.”
Other analysts have also recently issued research reports about the stock. TheStreet upgraded shares of The New York Times from a “hold” rating to a “buy” rating in a report on Thursday, August 4th. Jefferies Group reiterated a “hold” rating and issued a $13.00 price target on shares of The New York Times in a report on Friday, July 29th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $13.60.
The New York Times (NYSE:NYT) opened at 12.05 on Tuesday. The firm has a market cap of $1.94 billion, a P/E ratio of 37.19 and a beta of 1.82. The firm’s 50-day moving average is $12.72 and its 200 day moving average is $12.49. The New York Times has a 12-month low of $11.45 and a 12-month high of $14.27.
The New York Times (NYSE:NYT) last issued its earnings results on Thursday, July 28th. The company reported $0.11 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.11. The New York Times had a net margin of 3.36% and a return on equity of 13.70%. The firm had revenue of $372.60 million for the quarter, compared to analysts’ expectations of $377.15 million. During the same quarter last year, the business earned $0.13 earnings per share. The business’s revenue was down 2.7% on a year-over-year basis. Equities analysts forecast that The New York Times will post $0.58 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 20th. Stockholders of record on Wednesday, October 5th will be issued a dividend of $0.04 per share. This represents a $0.16 dividend on an annualized basis and a dividend yield of 1.33%. The ex-dividend date is Monday, October 3rd. The New York Times’s dividend payout ratio (DPR) is presently 50.00%.
In other news, EVP Levien Meredith A. Kopit sold 26,728 shares of The New York Times stock in a transaction dated Thursday, August 25th. The stock was sold at an average price of $13.06, for a total value of $349,067.68. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Kenneth A. Richieri sold 24,942 shares of The New York Times stock in a transaction dated Thursday, August 18th. The stock was sold at an average price of $12.95, for a total value of $322,998.90. Following the completion of the transaction, the executive vice president now directly owns 50,203 shares of the company’s stock, valued at approximately $650,128.85. The disclosure for this sale can be found here. Insiders own 6.20% of the company’s stock.
Several institutional investors have recently bought and sold shares of NYT. Northwestern Mutual Investment Management Company LLC raised its position in The New York Times by 0.5% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 21,284 shares of the company’s stock valued at $258,000 after buying an additional 109 shares in the last quarter. Mason Street Advisors LLC bought a new position in The New York Times during the second quarter valued at about $680,000. Public Employees Retirement System of Ohio raised its position in 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 valued at $100,000 after buying an additional 517 shares in the last quarter. Schwab Charles Investment Management Inc. raised its position in The New York Times by 2.6% in the second quarter. Schwab Charles Investment Management Inc. now owns 622,321 shares of the company’s stock valued at $7,531,000 after buying an additional 15,585 shares in the last quarter. Finally, Stifel Financial Corp raised its position in The New York Times by 61.7% in the second quarter. Stifel Financial Corp now owns 101,171 shares of the company’s stock valued at $1,224,000 after buying an additional 38,594 shares in the last quarter. 62.86% of the stock is owned by hedge funds and other 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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