According to Zacks, “After reporting earnings beat in the trailing three quarters, World Wrestling Entertainment succumbed to negative earnings surprise in second-quarter 2016. Despite the earnings miss by a huge margin, investors were pretty impressed by the record revenue in the reported quarter. WWE operates in the highly competitive market of entertainment video. Competition in the entertainment video space has increased significantly and the company expects it to become more intense in the coming days. Moreover, decline in pay-per revenues is also a major concern for the company. Nevertheless, World Wrestling Entertainment is executing a five-part strategy to strengthen and expand the WWE Network, which includes creating new content, implementing programs that will have higher customer attraction and retention power, introducing new features, expanding distribution platforms and entering into new regions.”
A number of other analysts have also issued reports on the stock. Benchmark Co. reiterated a buy rating and set a $21.86 price target on shares of World Wrestling Entertainment in a research note on Monday, August 1st. Wells Fargo & Co. reiterated a buy rating on shares of World Wrestling Entertainment in a research note on Tuesday, July 12th. Needham & Company LLC reiterated a buy rating and set a $25.00 price target on shares of World Wrestling Entertainment in a research note on Wednesday, June 29th. KeyCorp cut their price target on shares of World Wrestling Entertainment from $22.00 to $21.00 and set an overweight rating on the stock in a research note on Thursday, June 16th. Finally, Pacific Crest reiterated a buy rating and set a $22.00 price target (up from $21.00) on shares of World Wrestling Entertainment in a research note on Thursday, June 16th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and seven have issued a buy rating to the company’s stock. The company has an average rating of Buy and a consensus target price of $21.54.
Shares of World Wrestling Entertainment (NYSE:WWE) opened at 20.85 on Tuesday. The company has a 50-day moving average of $20.59 and a 200-day moving average of $18.66. World Wrestling Entertainment has a 1-year low of $14.20 and a 1-year high of $21.55. The firm has a market capitalization of $1.59 billion, a PE ratio of 67.04 and a beta of 0.79.
World Wrestling Entertainment (NYSE:WWE) last posted its earnings results on Thursday, July 28th. The company reported $0.01 EPS for the quarter, missing the Zacks’ consensus estimate of $0.03 by $0.02. World Wrestling Entertainment had a net margin of 3.40% and a return on equity of 13.38%. The company earned $199 million during the quarter, compared to analyst estimates of $182.56 million. During the same period in the previous year, the company earned $0.07 EPS. The company’s quarterly revenue was up 32.5% compared to the same quarter last year. Equities research analysts predict that World Wrestling Entertainment will post $0.48 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Monday, September 26th. Investors of record on Thursday, September 15th were issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 2.30%. The ex-dividend date was Tuesday, September 13th. World Wrestling Entertainment’s dividend payout ratio (DPR) is 154.84%.
In related news, insider Michael J. Luisi sold 14,251 shares of the company’s stock in a transaction that occurred on Friday, August 5th. The stock was sold at an average price of $19.82, for a total value of $282,454.82. Following the completion of the transaction, the insider now directly owns 64,375 shares of the company’s stock, valued at $1,275,912.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Michael J. Luisi sold 7,875 shares of the company’s stock in a transaction that occurred on Friday, August 26th. The shares were sold at an average price of $21.39, for a total value of $168,446.25. Following the completion of the transaction, the insider now directly owns 64,175 shares of the company’s stock, valued at $1,372,703.25. The disclosure for this sale can be found here. 55.10% of the stock is owned by corporate insiders.
A number of institutional investors have recently made changes to their positions in WWE. BlackRock Fund Advisors increased its position in shares of World Wrestling Entertainment by 169.6% in the first quarter. BlackRock Fund Advisors now owns 2,010,653 shares of the company’s stock worth $35,508,000 after buying an additional 1,264,908 shares during the period. Artemis Investment Management LLP acquired a new position in shares of World Wrestling Entertainment during the second quarter worth about $10,621,000. Aristotle Capital Boston LLC increased its position in shares of World Wrestling Entertainment by 3.4% in the second quarter. Aristotle Capital Boston LLC now owns 285,896 shares of the company’s stock worth $5,263,000 after buying an additional 9,398 shares during the period. Texas Permanent School Fund acquired a new position in shares of World Wrestling Entertainment during the first quarter worth about $484,000. Finally, Bbva Compass Bancshares Inc. acquired a new position in shares of World Wrestling Entertainment during the second quarter worth about $197,000. 47.54% of the stock is owned by hedge funds and other institutional investors.
About World Wrestling Entertainment
World Wrestling Entertainment, Inc (WWE) is a media and entertainment company. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands.
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