TEGNA (NYSE:TGNA) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of TEGNA (NYSE:TGNA) from a hold rating to a strong sell rating in a research note released on Monday morning, Zacks.com reports. They currently have $17.00 target price on the stock.

According to Zacks, “TEGNA shares have outperformed the industry on a year-to-date basis. The company expects its paying subscriber base to exceed that of the industry due to its presence in key markets. Moreover, the company’s continued acquisitions of local TV stations, including the Big Four affiliates, are likely to drive political ad revenues, owing to higher spending related to the 2020 presidential elections. Moreover, the company has a positive record of earnings surprises in recent quarters. However, increasing programming fees, primarily higher reverse compensation fees, are expected to drag margins down in the near term. Moreover, intense competition and a leveraged balance sheet due to frequent acquisitions are major headwinds.”

TGNA has been the topic of a number of other research reports. Stephens lowered shares of TEGNA from an overweight rating to an equal rating and cut their price target for the company from $19.00 to $17.00 in a research note on Tuesday, June 11th. Benchmark reaffirmed a buy rating and issued a $18.00 price target on shares of TEGNA in a research note on Friday, May 10th. Noble Financial set a $26.00 price objective on shares of Cumulus Media and gave the stock a buy rating in a research report on Friday, May 10th. Finally, Evercore ISI began coverage on shares of Ascendis Pharma A/S in a research report on Monday, March 25th. They issued an outperform rating on the stock. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $16.13.

TGNA traded down $0.09 during trading on Monday, reaching $15.60. The company had a trading volume of 1,686,896 shares, compared to its average volume of 2,417,142. The company has a debt-to-equity ratio of 2.12, a quick ratio of 1.61 and a current ratio of 1.61. TEGNA has a 12 month low of $10.24 and a 12 month high of $16.57. The company’s fifty day moving average price is $15.26. The stock has a market capitalization of $3.39 billion, a P/E ratio of 8.52, a P/E/G ratio of 1.26 and a beta of 1.44.

TEGNA (NYSE:TGNA) last announced its quarterly earnings results on Thursday, May 9th. The company reported $0.29 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.27 by $0.02. TEGNA had a net margin of 18.91% and a return on equity of 30.61%. The firm had revenue of $516.80 million for the quarter, compared to analyst estimates of $512.45 million. During the same quarter in the previous year, the firm posted $0.33 earnings per share. The business’s revenue was up 2.9% on a year-over-year basis. On average, research analysts expect that TEGNA will post 1.25 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Monday, July 1st. Investors of record on Friday, June 7th were issued a dividend of $0.07 per share. The ex-dividend date of this dividend was Thursday, June 6th. This represents a $0.28 dividend on an annualized basis and a yield of 1.79%. TEGNA’s payout ratio is 15.30%.

Institutional investors and hedge funds have recently modified their holdings of the stock. Empowered Funds LLC bought a new stake in shares of TEGNA in the second quarter valued at about $2,095,000. Investors Research Corp boosted its position in shares of TEGNA by 4.8% in the second quarter. Investors Research Corp now owns 17,475 shares of the company’s stock valued at $265,000 after acquiring an additional 800 shares during the period. Dorsey Wright & Associates bought a new stake in shares of TEGNA in the second quarter valued at about $1,823,000. Amundi Pioneer Asset Management Inc. boosted its position in shares of TEGNA by 201.3% in the first quarter. Amundi Pioneer Asset Management Inc. now owns 51,221 shares of the company’s stock valued at $722,000 after acquiring an additional 34,221 shares during the period. Finally, Allstate Corp bought a new stake in shares of TEGNA in the first quarter valued at about $195,000. Institutional investors and hedge funds own 97.31% of the company’s stock.

TEGNA Company Profile

TEGNA Inc, a media company, provides broadcast advertising and marketing products and services for businesses. The company operates 47 television stations in 39 markets of the United States that produce local programming, such as news, sports, and entertainment. It offers local and national non-political advertising; political advertising; production of programming from third parties; production of advertising materials; and digital marketing services, as well as advertising services on the stations' Websites, tablets, and mobile products.

Further Reading: What is the Ex-Dividend Date in Investing?

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