CBS (CBS) Downgraded to “Sell” at Zacks Investment Research
Zacks Investment Research lowered shares of CBS (NYSE:CBS) from a hold rating to a sell rating in a report released on Tuesday.
According to Zacks, “CBS is gaining from the contribution from Network Ten, which the company acquired in fourth-quarter of 2017. A surge in retransmission revenues and fees from CBS Television Network is also a positive. The company is benefiting from strong demand for content, rise in retransmission rates and expansion of direct-to-consumer business. For the third quarter, CBS expects Local Media revenues to increase at a double-digit rate as mid-term elections are coming closer. However, currency fluctuations and higher expenditure for original programming might prove to be a drag. Shares have underperformed the industry on a year-to-date basis.”
Other equities analysts also recently issued research reports about the company. Argus downgraded CBS from a buy rating to a hold rating in a research report on Tuesday, August 7th. Barrington Research restated a buy rating and set a $71.00 target price on shares of CBS in a research report on Monday, August 6th. Loop Capital Mk restated a buy rating on shares of CBS in a research report on Friday, August 3rd. Credit Suisse Group began coverage on CBS in a research report on Tuesday, July 10th. They set an overweight rating and a $66.00 target price for the company. Finally, Cowen downgraded CBS from an outperform rating to a market perform rating in a research report on Tuesday, July 31st. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating and fifteen have assigned a buy rating to the company. CBS currently has a consensus rating of Buy and a consensus target price of $65.86.
CBS (NYSE:CBS) last announced its quarterly earnings data on Thursday, August 2nd. The media conglomerate reported $1.12 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.11 by $0.01. The company had revenue of $3.47 billion for the quarter, compared to analyst estimates of $3.46 billion. CBS had a return on equity of 81.10% and a net margin of 10.21%. CBS’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter last year, the firm earned $1.04 EPS. Research analysts expect that CBS will post 5.24 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, October 1st. Shareholders of record on Monday, September 10th were given a $0.18 dividend. The ex-dividend date of this dividend was Friday, September 7th. This represents a $0.72 annualized dividend and a yield of 1.33%. CBS’s payout ratio is 17.18%.
In other CBS news, EVP Anthony G. Ambrosio sold 2,100 shares of CBS stock in a transaction on Thursday, September 6th. The stock was sold at an average price of $55.16, for a total value of $115,836.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Anthony G. Ambrosio sold 11,697 shares of the business’s stock in a transaction on Friday, September 28th. The stock was sold at an average price of $57.53, for a total value of $672,928.41. Following the sale, the executive vice president now owns 80,950 shares of the company’s stock, valued at approximately $4,657,053.50. The disclosure for this sale can be found here. In the last quarter, insiders sold 32,925 shares of company stock valued at $1,882,469. Corporate insiders own 1.80% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the company. Private Capital Group LLC raised its position in shares of CBS by 430.9% during the first quarter. Private Capital Group LLC now owns 2,076 shares of the media conglomerate’s stock worth $107,000 after acquiring an additional 1,685 shares during the last quarter. Squar Milner Financial Services LLC bought a new stake in shares of CBS during the second quarter worth $122,000. Atria Investments LLC bought a new stake in shares of CBS during the third quarter worth $202,000. Greenleaf Trust bought a new stake in shares of CBS during the second quarter worth $240,000. Finally, Lourd Capital LLC bought a new stake in shares of CBS during the third quarter worth $245,000. Institutional investors own 74.89% of the company’s stock.
CBS Corporation operates as a mass media company worldwide. The company operates through four segments: Entertainment, Cable Networks, Publishing, and Local Media. The Entertainment segment distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; produces, acquires, and/or distributes programming, including series, specials, news, and public affairs; operates online content networks for information and entertainment; produces, acquires, and distributes theatrical motion pictures; and digital streaming services.
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