The New York Times Co. (NYSE:NYT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
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.”
NYT has been the subject of several other reports. Jefferies Group reiterated a “hold” rating and issued a $13.00 target price on shares of The New York Times in a research report on Friday, July 29th. TheStreet upgraded The New York Times from a “hold” rating to a “buy” rating in a research report on Thursday, August 4th. 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. The company 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 11.93 on Monday. The New York Times has a 1-year low of $11.45 and a 1-year high of $14.27. The company has a market cap of $1.92 billion, a PE ratio of 36.82 and a beta of 1.62. The firm has a 50-day moving average price of $12.63 and a 200 day moving average price of $12.47.
The New York Times (NYSE:NYT) last posted its earnings results on Thursday, July 28th. The company reported $0.11 EPS for the quarter, meeting the consensus estimate of $0.11. The firm earned $372.60 million during the quarter, compared to the consensus estimate of $377.15 million. The New York Times had a return on equity of 13.70% and a net margin of 3.36%. The business’s quarterly revenue was down 2.7% on a year-over-year basis. During the same period last year, the company earned $0.13 earnings per share. On average, equities analysts anticipate that The New York Times will post $0.58 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, October 20th. Stockholders of record on Wednesday, October 5th will be paid a $0.04 dividend. The ex-dividend date is Monday, October 3rd. This represents a $0.16 annualized dividend and a dividend yield of 1.34%. The New York Times’s payout ratio is 50.00%.
In related news, EVP Levien Meredith A. Kopit sold 26,728 shares of the firm’s stock in a transaction that occurred on Thursday, August 25th. The stock was sold at an average price of $13.06, for a total transaction of $349,067.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Kenneth A. Richieri sold 24,942 shares of the firm’s stock in a transaction that occurred on Thursday, August 18th. The stock was sold at an average price of $12.95, for a total value of $322,998.90. Following the sale, 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. 6.20% of the stock is owned by insiders.
A number of large investors have recently added to or reduced their stakes in NYT. Northwestern Mutual Investment Management Company LLC boosted its stake 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. Amalgamated Bank boosted its stake in The New York Times by 1.0% in the second quarter. Amalgamated Bank now owns 15,426 shares of the company’s stock valued at $196,000 after buying an additional 148 shares in the last quarter. Legal & General Group Plc boosted its stake in The New York Times by 1.4% in the second quarter. Legal & General Group Plc now owns 32,611 shares of the company’s stock valued at $391,000 after buying an additional 455 shares in the last quarter. State Treasurer State of Michigan boosted its stake in The New York Times by 1.0% in the second quarter. State Treasurer State of Michigan now owns 49,500 shares of the company’s stock valued at $599,000 after buying an additional 500 shares in the last quarter. Finally, Public Employees Retirement System of Ohio boosted its stake 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. 62.86% of the stock is owned by institutional investors and hedge funds.
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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