Zacks Investment Research lowered shares of CBS (NYSE:CBS) from a hold rating to a sell rating in a report released on Tuesday morning.
According to Zacks, “Shares of CBS have underperformed the industry in the past six months. CBS, which remains highly vulnerable to the advertising market, is likely to report weaker political advertising revenues in the fourth quarter of 2017. In the prior-year quarter, the company benefited from strong political advertising. Moreover, currency fluctuations and higher expenditure for original programming might prove to be a drag. However, increasing demand for content, rise in retransmission rates, expansion of direct-to-consumer business and sturdy digital presence bode well. We believe with the launch of Showtime's streaming service; online news channel, CBSN; and over-the-top service, CBS All Access, the company is generating incremental revenues. Moreover, the company aims to attain $2.5 billion of revenues from retransmission and reverse compensation by 2020.”
Several other equities research analysts have also recently commented on CBS. ValuEngine cut CBS from a buy rating to a hold rating in a research note on Monday, September 11th. Needham & Company LLC reissued a buy rating and issued a $80.00 target price on shares of CBS in a research note on Wednesday, September 13th. Rosenblatt Securities reissued a buy rating and issued a $80.00 target price on shares of CBS in a research note on Wednesday, September 20th. Cowen reissued a buy rating on shares of CBS in a research note on Thursday, September 21st. Finally, Benchmark reissued a buy rating and issued a $81.00 target price on shares of CBS in a research note on Wednesday, September 27th. One research analyst has rated the stock with a sell rating, six have given a hold rating, twenty-four have issued a buy rating and one has assigned a strong buy rating to the stock. CBS has an average rating of Buy and a consensus target price of $72.72.
CBS (NYSE:CBS) last released its earnings results on Thursday, November 2nd. The media conglomerate reported $1.11 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.07 by $0.04. The company had revenue of $3.17 billion during the quarter, compared to analysts’ expectations of $3.26 billion. CBS had a return on equity of 58.49% and a net margin of 2.14%. The business’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same period last year, the firm earned $1.05 EPS. sell-side analysts forecast that CBS will post 4.4 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Monday, January 1st. Stockholders of record on Monday, December 11th were issued a $0.18 dividend. The ex-dividend date of this dividend was Friday, December 8th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.22%. CBS’s dividend payout ratio (DPR) is 20.93%.
In other news, CEO Leslie Moonves sold 85,000 shares of the business’s stock in a transaction dated Tuesday, December 12th. The stock was sold at an average price of $57.85, for a total value of $4,917,250.00. Following the sale, the chief executive officer now directly owns 884,513 shares in the company, valued at $51,169,077.05. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Arnold Kopelson sold 5,093 shares of the business’s stock in a transaction dated Monday, December 4th. The shares were sold at an average price of $59.51, for a total value of $303,084.43. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 250,279 shares of company stock worth $14,437,978. Corporate insiders own 2.03% of the company’s stock.
Several institutional investors have recently modified their holdings of the company. Fred Alger Management Inc. lifted its holdings in shares of CBS by 0.6% in the second quarter. Fred Alger Management Inc. now owns 4,880,086 shares of the media conglomerate’s stock valued at $311,252,000 after purchasing an additional 29,986 shares in the last quarter. Sound Shore Management Inc. CT raised its holdings in CBS by 32.8% during the third quarter. Sound Shore Management Inc. CT now owns 2,440,353 shares of the media conglomerate’s stock worth $141,540,000 after acquiring an additional 603,157 shares in the last quarter. Focused Investors LLC raised its holdings in CBS by 43.0% during the third quarter. Focused Investors LLC now owns 1,624,900 shares of the media conglomerate’s stock worth $94,244,000 after acquiring an additional 488,700 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. raised its holdings in CBS by 0.9% during the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 1,147,664 shares of the media conglomerate’s stock worth $66,565,000 after acquiring an additional 10,212 shares in the last quarter. Finally, Mitsubishi UFJ Trust & Banking Corp raised its holdings in CBS by 0.4% during the third quarter. Mitsubishi UFJ Trust & Banking Corp now owns 751,312 shares of the media conglomerate’s stock worth $43,576,000 after acquiring an additional 2,978 shares in the last quarter. Institutional investors own 74.77% of the company’s stock.
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CBS Corporation is a mass media company. The Company operates through four segment: Entertainment, Cable Networks, Publishing, Local Media. The Entertainment segment comprises the CBS TV Network; CBS TV Studios; CBS Studios International and CBS TV Distribution; CBS Interactive; CBS Films; and the Company’s digital streaming services, CBS All Access and CBSN.
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