An analyst sees good growth prospects for Gannett Co. Inc. (GCI)

Gannett Co. Inc. (NYSE: GCI) stock jumped 4.56% on Friday to $3.21 against a previous-day closing price of $3.07. With 1.08 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.1 million shares. During the session, the Publishing company that operates in wider Communication Services sector, reached to the highest price of $3.2400 whereas the lowest price it dropped to was $3.0650. The 52-week range on GCI shows that it touched its highest point at $7.05 and its lowest point at $2.45 during that stretch. It currently has a 1-year price target of $3.58. Beta for the stock currently stands at 2.35.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GCI was up-trending over the past week, with a rise of 7.72%, but this was up by 12.63% over a month. Three-month performance dropped to -21.13% while six-month performance fell -39.43%. The stock lost -42.37% in the past year, while it has lost -39.77% so far this year. A look at the trailing 12-month EPS for GCI yields 0.00 with Next year EPS estimates of 0.15. For the next quarter, that number is 0.03. This implies an EPS growth rate of 80.30% for this year and -59.74% for next year.

Float and Shares Shorts:

At present, 136.43 million GCI shares are outstanding with a float of 134.64 million shares on hand for trading. On Jul 14, 2022, short shares totaled 16.1 million, which was 10.99% higher than short shares on Jun 14, 2022. In addition to Mr. Michael E. Reed as the firm’s Chairman, CEO & Pres, Mr. Douglas Edward Horne serves as its CFO & Chief Accounting Officer.

Institutional Ownership:

Through their ownership of 68.77% of GCI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.91% of GCI, in contrast to 24.80% held by mutual funds. Shares owned by individuals account for 2.77%. As the largest shareholder in GCI with 14.68% of the stake, BlackRock Fund Advisors holds 21,522,559 shares worth 21,522,559. A second-largest stockholder of GCI, The Vanguard Group, Inc., holds 9,577,256 shares, controlling over 6.53% of the firm’s shares. Alta Fundamental Advisers LLC is the third largest shareholder in GCI, holding 6,977,582 shares or 4.76% stake. With a 6.96% stake in GCI, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 10,207,420 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.77% of GCI stock, is the second-largest Mutual Fund holder. It holds 4,063,386 shares valued at 11.78 million. iShares Russell 2000 ETF holds 2.15% of the stake in GCI, owning 3,147,336 shares worth 9.13 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GCI since 2 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GCI analysts setting a high price target of $4.50 and a low target of $2.65, the average target price over the next 12 months is $3.58. Based on these targets, GCI could surge 40.19% to reach the target high and fall by -17.45% to reach the target low. Reaching the average price target will result in a growth of 11.53% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GCI will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $0.38 being high and $0.37 being low. For GCI, this leads to a yearly average estimate of $0.37. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Gannett Co. Inc. surprised analysts by $0.09 when it reported $0.03 EPS against a consensus estimate of -$0.06. The surprise factor in the prior quarter was $0.16. Based on analyst estimates, the high estimate for the next quarter is $0.04 and the low estimate is $0.03. The average estimate for the next quarter is thus $0.03.

Summary of Insider Activity:

Insiders traded GCI stock several times over the past three months with 10 Buys and 2 Sells. In these transactions, 435,334 shares were bought while 62,168 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 4 over the past year. The total number of shares bought during that period was 981,490 while 81,801 shares were sold.

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