CBS (CBS) Lowered to “Sell” at Zacks Investment Research

CBS (NYSE:CBS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued 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.”

Several other equities research analysts have also commented on the company. Royal Bank of Canada set a $63.00 price target on CBS and gave the stock a “buy” rating in a research note on Friday, August 3rd. Argus lowered CBS from a “buy” rating to a “hold” rating in a research note on Tuesday, August 7th. UBS Group lowered CBS from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $72.00 to $60.00 in a research note on Monday, September 10th. ValuEngine lowered CBS from a “sell” rating to a “strong sell” rating in a research note on Monday, July 30th. Finally, Barrington Research reissued a “buy” rating and set a $73.00 price target on shares of CBS in a research note on Monday, September 10th. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating and fifteen have given a buy rating to the stock. The stock has an average rating of “Buy” and a consensus price target of $65.86.



NYSE CBS opened at $55.53 on Tuesday. The company has a debt-to-equity ratio of 4.37, a quick ratio of 1.10 and a current ratio of 1.60. CBS has a 12-month low of $47.54 and a 12-month high of $61.59. The company has a market cap of $21.60 billion, a price-to-earnings ratio of 13.25, a price-to-earnings-growth ratio of 0.72 and a beta of 1.36.

CBS (NYSE:CBS) last released its earnings results on Thursday, August 2nd. The media conglomerate reported $1.12 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.11 by $0.01. CBS had a return on equity of 81.10% and a net margin of 10.21%. The company had revenue of $3.47 billion for the quarter, compared to analysts’ expectations of $3.46 billion. During the same quarter in the previous year, the firm posted $1.04 EPS. The firm’s quarterly revenue was up 6.4% on a year-over-year basis. As a group, equities research analysts forecast that CBS will post 5.24 EPS for the current year.

In related news, EVP Anthony G. Ambrosio sold 11,697 shares of the company’s stock in a transaction that occurred 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 transaction was disclosed in a filing with the SEC, which is available through this link. In the last ninety days, insiders sold 29,476 shares of company stock worth $1,683,565. 1.80% of the stock is owned by corporate insiders.

A number of hedge funds have recently bought and sold shares of CBS. Becker Capital Management Inc. purchased a new stake in CBS in the 2nd quarter valued at approximately $24,385,000. Kovitz Investment Group Partners LLC lifted its stake in CBS by 31.7% in the 1st quarter. Kovitz Investment Group Partners LLC now owns 1,758,992 shares of the media conglomerate’s stock valued at $90,395,000 after buying an additional 423,383 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. lifted its stake in CBS by 507.5% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 431,475 shares of the media conglomerate’s stock valued at $24,258,000 after buying an additional 360,450 shares in the last quarter. Deroy & Devereaux Private Investment Counsel Inc. purchased a new stake in CBS in the 2nd quarter valued at approximately $12,798,000. Finally, Natixis lifted its stake in CBS by 4,631.2% in the 1st quarter. Natixis now owns 165,543 shares of the media conglomerate’s stock valued at $8,507,000 after buying an additional 162,044 shares in the last quarter. 74.89% of the stock is currently owned by hedge funds and other institutional investors.

About CBS

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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