Is The New York Times Company (NYSE: NYT) Back In The Buying Zone?

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    The Vanguard Group, Inc. recently announced the acquisition of new stake in The New York Times Company (NYSE:NYT). The institutional investor has increased its shareholding in the Communication Services company by 1.33% to 14.06 million shares with purchase of 0.18 million shares. This fresh investment now brings its stake to 8.48% valued currently at $591.06 million. In addition, Darsana Capital Partners LP raised its holdings by 1.0 million to 13.0 million shares. And Artisan Partners LP has lifted its position by 0.23% or 16370.0 shares – to 7.04 million shares.

    With over 1.14 million The New York Times Company (NYT) shares trading Tuesday and a closing price of $45.64 on the day, the dollar volume was approximately $51.99 million. The shares have shown a positive weekly performance of 5.16% and its price on 07/21/20 gained nearly 0.97%. Currently, there are 166.55M common shares owned by the public and among those 146.45M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 6 analysts who have offered their price forecasts for NYT have a consensus price objective of $36.40. The analysts have set the share’s price value over the next 12 months at a high of $50.00 and a low of $20.00 should the stock experience a downside. Incidentally, analysts’ outlook for the The New York Times Company stock is 2.70 for the next 12 months. The average price target is -28.93% below its last price level and a downside to the estimated low will see the stock lose -128.2% over that period. But an upside of 8.72% will see the stock hit the forecast high price target while mean target price for the stock is $35.00.

    Insiders at the company have transacted a total of 59 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 46 of these insider trades were purchases, accounting for 138,191 shares. Insider sales of the common stock occurred on 13 occasions, with total insider shares sold totaling 384,647 shares.

    The top 3 mutual fund holders in The New York Times Company are Vanguard Total Stock Market Index, American Funds Small Cap World Fu, and iShares Core S&P Mid Cap ETF. Vanguard Total Stock Market Index owns 4.26 million shares of the company’s stock, all valued at over $179.24 million. The company bought an additional 0.22 million shares recently to bring their total holdings to about 2.57% of the shares outstanding. American Funds Small Cap World Fu sold -0.15 million shares to see its total holdings shrink to 3.87 million shares valued at over $162.45 million and representing 2.33% of the shares outstanding. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.33% of the shares outstanding.

    Shares of The New York Times Company (NYSE: NYT) opened at $45.30, up $0.1 from a prior closing price of $45.20. However, the script later closed the day at $45.64, up 0.97%. The company’s stock has a 5-day price change of 5.16% and 52.29% over the past three months. NYT shares are trading 41.87% year to date (YTD), with the 12-month market performance up to 30.59% higher. It has a 12-month low price of $26.13 and touched a high of $45.98 over the same period. Currently, 1.14 million shares have been traded, compared to an average intraday trading volume of 1.58 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.25%, 11.94%, and 31.98% respectively.

    Institutional ownership of The New York Times Company (NYSE: NYT) shares accounts for 94.50% of the company’s 166.55M shares outstanding. Mutual fund holders own 39.84%, while other institutional holders and individual stakeholders account for 54.42% and 30.36% respectively.

    It has a market capitalization of $7.45B and a beta (3y monthly) value of 0.92. The stock’s trailing 12-month PE ratio is 53.69, while the earnings-per-share (ttm) stands at $0.85. The company has a PEG of 12.20 and a Quick Ratio of 1.80 with the debt-to-equity ratio at 0.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.43% over the week and 2.51% over the month.

    Analysts forecast that The New York Times Company (NYT) will achieve an EPS of $0.01 for the current quarter, $0.07 for the next quarter and $0.86 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.07 while analysts give the company a high EPS estimate of $0.05. Comparatively, EPS for the current quarter was $0.17 a year ago. Earnings per share for the fiscal year are expected to increase by 12.60%, and 54.29% over the next financial year. EPS should shrink at an annualized rate of 4.40% over the next five years, compared to 31.40% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 6 brokerage firm advisors rate The New York Times Company (NYT) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 3 of the 6 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the NYT, a number of firms have released research notes about the stock. Evercore ISI stated their In-line rating for the stock in a research note on April 23, 2020, with the firm’s price target at $32. Guggenheim coverage for the The New York Times Company (NYT) stock in a research note released on October 09, 2019 offered a Neutral rating with a price target of $27.50. Barclays was of a view on November 06, 2018 that the stock is Underweight, while Singular Research gave the stock Sell rating on February 09, 2017, issuing a price target of $7.80. Barclays on their part issued Equal Weight rating on November 13, 2015.

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