According to Zacks, “Meredith continued with its positive earnings surprise streak for the eleventh straight quarter when it posted fourth-quarter fiscal 2016 results. Favorable advertising trends in the digital section and recent acquisitions continue to positively influence the company’s performance. Digital traffic increased to more than 80 million monthly unique visitors. The company expects strong political advertising cycle as well as higher retransmission revenues and robust digital advertising revenue growth to drive its performance higher in fiscal 2017. Meredith is focused on bolstering advertising revenues, primarily in the digital space, and is increasingly concentrating on brand licensing, marketing services and eCommerce. However, with advancing technology, the print media is on a decline. Shift to online is likely to put enormous pressure on Meredith’s magazine portfolio.”
Separately, Benchmark Co. increased their target price on shares of Meredith Corp. from $57.00 to $62.00 and gave the company a buy rating in a report on Friday, July 29th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and two have assigned a buy rating to the company’s stock. The stock has an average rating of Hold and an average price target of $54.20.
Meredith Corp. (NYSE:MDP) opened at 51.99 on Wednesday. The company has a 50-day moving average price of $52.54 and a 200-day moving average price of $51.02. The firm has a market capitalization of $2.32 billion, a PE ratio of 69.32 and a beta of 1.01. Meredith Corp. has a 12-month low of $35.03 and a 12-month high of $57.53.
Meredith Corp. (NYSE:MDP) last issued its earnings results on Thursday, July 28th. The company reported $1.08 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.03 by $0.05. Meredith Corp. had a net margin of 2.06% and a return on equity of 15.66%. The company earned $435.78 million during the quarter, compared to analysts’ expectations of $437.78 million. During the same period last year, the company posted $0.94 earnings per share. The firm’s quarterly revenue was up 2.3% compared to the same quarter last year. On average, analysts predict that Meredith Corp. will post $3.68 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Wednesday, August 31st were paid a dividend of $0.495 per share. The ex-dividend date was Monday, August 29th. This represents a $1.98 dividend on an annualized basis and a dividend yield of 3.81%. Meredith Corp.’s dividend payout ratio (DPR) is 275.00%.
In other news, CFO Joseph H. Ceryanec sold 9,145 shares of the firm’s stock in a transaction that occurred on Monday, August 1st. The shares were sold at an average price of $54.03, for a total transaction of $494,104.35. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Stephen M. Lacy sold 46,283 shares of the firm’s stock in a transaction that occurred on Monday, August 1st. The stock was sold at an average price of $54.15, for a total transaction of $2,506,224.45. The disclosure for this sale can be found here. Insiders own 11.24% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of MDP. CIBC World Markets Inc. acquired a new position in shares of Meredith Corp. during the first quarter worth $239,000. TIAA CREF Investment Management LLC raised its stake in shares of Meredith Corp. by 10.2% in the first quarter. TIAA CREF Investment Management LLC now owns 145,588 shares of the company’s stock worth $6,915,000 after buying an additional 13,449 shares during the period. BlackRock Inc. raised its stake in shares of Meredith Corp. by 15.5% in the first quarter. BlackRock Inc. now owns 27,667 shares of the company’s stock worth $1,314,000 after buying an additional 3,715 shares during the period. BlackRock Group LTD raised its stake in shares of Meredith Corp. by 41.5% in the first quarter. BlackRock Group LTD now owns 102,995 shares of the company’s stock worth $4,893,000 after buying an additional 30,203 shares during the period. Finally, BlackRock Fund Advisors raised its stake in shares of Meredith Corp. by 15.5% in the first quarter. BlackRock Fund Advisors now owns 5,215,985 shares of the company’s stock worth $247,759,000 after buying an additional 701,153 shares during the period. 82.34% of the stock is owned by institutional investors and hedge funds.
About Meredith Corp.
Meredith Corporation is a media and marketing company. The Company operates two business segments namely local media and national media. Its national media segment includes national consumer media brands delivered via multiple media platforms including print magazines and digital and mobile media, brand licensing activities, database-related activities and business-to-business marketing products and services.
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