Gray Media Inc. (NYSE:GTN) Sees Large Decline in Short Interest

Key Points

• Gray Media saw a large drop in short interest in April—shorts fell 17.3% to 4,697,024 shares (about 5.0% of the stock) with a days-to-cover ratio of 4.3.
• Analyst coverage is mixed: the consensus rating is Hold with a consensus price target of $8.13 (3 Buys, 2 Holds, 1 Sell).
• Operationally, Gray reported Q1 EPS of ($0.24) beating estimates and revenue of $792M (down 24.2% YoY), and it pays a quarterly dividend of $0.08 for an approximate 5.8% yield.

Gray Media Inc. (NYSE:GTN - Get Free Report) was the recipient of a large drop in short interest in the month of April. As of April 15th, there was short interest totaling 4,697,024 shares, a drop of 17.3% from the March 31st total of 5,680,873 shares. Based on an average daily volume of 1,102,660 shares, the days-to-cover ratio is currently 4.3 days. Approximately 5.0% of the company's stock are short sold.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on GTN shares. Zacks Research downgraded Gray Media from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 4th. Wells Fargo & Company lifted their price target on Gray Media from $5.50 to $6.00 and gave the company an "equal weight" rating in a research note on Monday, March 2nd. Benchmark lifted their price target on Gray Media from $10.00 to $12.00 and gave the company a "buy" rating in a research note on Friday, February 27th. Barrington Research reissued an "outperform" rating and issued a $6.50 price target on shares of Gray Media in a research note on Tuesday. Finally, Wall Street Zen raised Gray Media from a "sell" rating to a "hold" rating in a research note on Saturday, February 28th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $8.13.

Hedge Funds Weigh In On Gray Media

A number of large investors have recently modified their holdings of the business. FNY Investment Advisers LLC boosted its stake in shares of Gray Media by 27.4% during the 4th quarter. FNY Investment Advisers LLC now owns 13,000 shares of the company's stock worth $62,000 after buying an additional 2,799 shares during the last quarter. Deutsche Bank AG lifted its stake in Gray Media by 6.0% in the 4th quarter. Deutsche Bank AG now owns 54,507 shares of the company's stock valued at $264,000 after purchasing an additional 3,066 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its stake in Gray Media by 6.2% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 59,957 shares of the company's stock valued at $333,000 after purchasing an additional 3,493 shares during the last quarter. CANADA LIFE ASSURANCE Co lifted its stake in Gray Media by 68.2% in the 4th quarter. CANADA LIFE ASSURANCE Co now owns 10,401 shares of the company's stock valued at $50,000 after purchasing an additional 4,217 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV lifted its stake in Gray Media by 24.9% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 21,437 shares of the company's stock valued at $104,000 after purchasing an additional 4,278 shares during the last quarter. 78.64% of the stock is currently owned by institutional investors and hedge funds.

Gray Media Stock Up 0.6%

Shares of Gray Media stock traded up $0.04 during trading hours on Thursday, reaching $5.57. 265,370 shares of the company's stock were exchanged, compared to its average volume of 1,354,593. The company has a 50 day moving average of $5.09 and a two-hundred day moving average of $4.85. Gray Media has a fifty-two week low of $3.27 and a fifty-two week high of $6.43. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 2.66. The stock has a market cap of $577.51 million, a P/E ratio of -3.92 and a beta of 0.90.

Gray Media (NYSE:GTN - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported ($0.24) EPS for the quarter, topping analysts' consensus estimates of ($0.28) by $0.04. Gray Media had a negative net margin of 2.75% and a negative return on equity of 2.51%. The company had revenue of $792.00 million during the quarter, compared to the consensus estimate of $780.50 million. During the same period in the prior year, the business posted $1.59 EPS. The company's quarterly revenue was down 24.2% on a year-over-year basis. On average, sell-side analysts forecast that Gray Media will post 2.58 EPS for the current fiscal year.

Gray Media Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th were paid a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date was Friday, March 13th. Gray Media's dividend payout ratio is currently -22.54%.

About Gray Media

Gray Media NYSE: GTN is a U.S.-based broadcasting and digital media company that owns and operates a portfolio of local television stations and associated digital platforms. The company's core business centers on delivering local news, sports and entertainment programming through its network-affiliated broadcast outlets. In addition to traditional over-the-air distribution, Gray Media supports multi-platform video streaming and on-demand services for audiences across its markets.

Gray Media's television stations carry network programming from major national broadcasters, including ABC, CBS, NBC, Fox and The CW, and often feature locally produced news and public affairs content.

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