Taking on analysts’ expectations and winning: The New York Times Company (NYT)

The New York Times Company (NYSE: NYT) stock jumped 0.13% on Friday to $30.85 against a previous-day closing price of $30.81. With 1.66 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.5 million shares. During the session, the Publishing company that operates in wider Communication Services sector, reached to the highest price of $31.44 whereas the lowest price it dropped to was $30.24. The 52-week range on NYT shows that it touched its highest point at $56.19 and its lowest point at $27.63 during that stretch. It currently has a 1-year price target of $34.75. With its current market cap of 5.11 billion, NYT has annualized dividend of $0.36 while the current yield stands at 1.17%. Beta for the stock currently stands at 1.00.

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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 NYT was down-trending over the past week, with a drop of -3.29%, but this was up by 5.65% over a month. Three-month performance dropped to -21.88% while six-month performance fell -25.79%. The stock lost -33.68% in the past year, while it has lost -36.13% so far this year. A look at the trailing 12-month EPS for NYT yields 1.09 with Next year EPS estimates of 1.19. For the next quarter, that number is 0.19. This implies an EPS growth rate of 119.10% for this year and 14.53% for next year. EPS is expected to decline by -1.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 46.60%.

Float and Shares Shorts:

At present, 167.87 million NYT shares are outstanding with a float of 163.71 million shares on hand for trading. On Jul 14, 2022, short shares totaled 7.25 million, which was 4.33% higher than short shares on Jun 14, 2022. In addition to Mr. Arthur Gregg Sulzberger as the firm’s Chairman & Publisher, Ms. Meredith A. Kopit Levien serves as its CEO, Pres & Director.

Institutional Ownership:

Through their ownership of 92.29% of NYT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.69% of NYT, in contrast to 33.84% held by mutual funds. Shares owned by individuals account for 27.89%. As the largest shareholder in NYT with 9.38% of the stake, The Vanguard Group, Inc. holds 15,630,921 shares worth 15,630,921. A second-largest stockholder of NYT, BlackRock Fund Advisors, holds 12,650,991 shares, controlling over 7.59% of the firm’s shares. Jackson Square Partners LLC is the third largest shareholder in NYT, holding 11,167,140 shares or 6.70% stake. With a 2.88% stake in NYT, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 4,800,500 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.80% of NYT stock, is the second-largest Mutual Fund holder. It holds 4,670,884 shares valued at 130.32 million. Vanguard Small Cap Index Fund holds 2.40% of the stake in NYT, owning 4,001,129 shares worth 111.63 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NYT since 8 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 3 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 NYT analysts setting a high price target of $40.00 and a low target of $25.00, the average target price over the next 12 months is $34.36. Based on these targets, NYT could surge 29.66% to reach the target high and fall by -18.96% to reach the target low. Reaching the average price target will result in a growth of 11.38% 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. NYT will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $1.10 being high and $0.87 being low. For NYT, this leads to a yearly average estimate of $0.97. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The New York Times Company surprised analysts by $0.05 when it reported $0.24 EPS against a consensus estimate of $0.19. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.16 and the low estimate is $0.12. The average estimate for the next quarter is thus $0.13.

Summary of Insider Activity:

Insiders traded NYT stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 5,794 shares were sold. The number of buy transactions has increased to 52 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 342,508 while 238,670 shares were sold.

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