Meredith Corp. (NYSE:MDP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.
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. raised their price objective on Meredith Corp. from $57.00 to $62.00 and gave the company a “buy” rating in a research note on Friday, July 29th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $54.20.
Shares of Meredith Corp. (NYSE:MDP) opened at 51.37 on Wednesday. The stock has a 50 day moving average of $52.58 and a 200-day moving average of $50.98. The company has a market cap of $2.29 billion, a PE ratio of 68.49 and a beta of 1.07. 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 quarterly earnings data on Thursday, July 28th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.03 by $0.05. Meredith Corp. had a return on equity of 15.66% and a net margin of 2.06%. The business had revenue of $435.78 million for the quarter, compared to analysts’ expectations of $437.78 million. During the same period last year, the business earned $0.94 EPS. The business’s revenue was up 2.3% on a year-over-year basis. Equities analysts forecast that Meredith Corp. will post $3.68 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Wednesday, August 31st were given a dividend of $0.495 per share. This represents a $1.98 annualized dividend and a dividend yield of 3.85%. The ex-dividend date of this dividend was Monday, August 29th. Meredith Corp.’s dividend payout ratio is presently 275.00%.
In other news, insider John S. Zieser sold 1,206 shares of the firm’s stock in a transaction on Thursday, August 18th. The stock was sold at an average price of $55.00, for a total transaction of $66,330.00. Following the completion of the sale, the insider now directly owns 18,000 shares of the company’s stock, valued at approximately $990,000. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Chairman Stephen M. Lacy sold 46,283 shares of the firm’s stock in a transaction on Monday, August 1st. The shares were sold at an average price of $54.15, for a total value of $2,506,224.45. The disclosure for this sale can be found here. Insiders own 11.24% of the company’s stock.
Several large investors have recently made changes to their positions in the stock. Riverhead Capital Management LLC acquired a new stake in shares of Meredith Corp. during the first quarter valued at about $199,000. AXA raised its stake in shares of Meredith Corp. by 1.5% in the first quarter. AXA now owns 6,900 shares of the company’s stock valued at $328,000 after buying an additional 100 shares during the period. Meeder Asset Management Inc. purchased a new stake in shares of Meredith Corp. during the first quarter valued at $567,000. BB&T Securities LLC raised its stake in shares of Meredith Corp. by 18.4% in the first quarter. BB&T Securities LLC now owns 47,529 shares of the company’s stock valued at $2,257,000 after buying an additional 7,400 shares during the period. Finally, OMERS ADMINISTRATION Corp purchased a new stake in shares of Meredith Corp. during the first quarter valued at $499,000. 82.34% of the stock is owned by hedge funds and other institutional investors.
Meredith Corp. Company Profile
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Meredith Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Meredith Corp. and related companies with MarketBeat.com's FREE daily email newsletter.