Gray Media (NYSE:GTN) Shares Gap Down on Disappointing Earnings

Key Points

• Q1 earnings missed estimates: Gray Media reported EPS of ($0.34) versus the ($0.32) consensus and its stock gapped down (closed $5.53, opened $4.75) after the release, with revenue essentially in line at $768.0M (down 1.8% YoY).
• High-yield dividend maintained: The board authorized/paid a quarterly cash dividend of $0.08 per share (annualized $0.32), implying a ~6.7% yield, supporting income-focused investor appeal despite negative margins and ROE.
• Strategic moves and cautious guidance: Gray closed an $80M station acquisition from Block Communications to expand its footprint, but raised Q2 FY2026 revenue guidance to $780M–$800M with a midpoint slightly below the $794M consensus, adding near-term investor caution.

Gray Media Inc. (NYSE:GTN - Get Free Report) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $5.53, but opened at $4.75. Gray Media shares last traded at $4.8470, with a volume of 406,161 shares trading hands.

The company reported ($0.34) EPS for the quarter, missing analysts' consensus estimates of ($0.32) by ($0.02). Gray Media had a negative return on equity of 2.51% and a negative net margin of 2.75%.The firm had revenue of $768.00 million for the quarter, compared to the consensus estimate of $768.05 million. During the same quarter in the previous year, the business posted ($0.23) EPS. Gray Media's revenue was down 1.8% on a year-over-year basis.

Gray Media Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th were paid a dividend of $0.08 per share. The ex-dividend date was Friday, March 13th. This represents a $0.32 dividend on an annualized basis and a yield of 6.7%. Gray Media's dividend payout ratio (DPR) is presently -22.54%.

More Gray Media News

Here are the key news stories impacting Gray Media this week:

• Positive Sentiment: Board authorized a quarterly cash dividend of $0.08 per share, payable June 30, 2026, to holders of record June 15 — a direct return of capital that supports the stock’s appeal to income-focused investors. GRAY ANNOUNCES QUARTERLY CASH DIVIDEND OF $0.08 PER SHARE
• Positive Sentiment: Closed acquisition with Block Communications for $80 million, adding stations in Louisville, Springfield–Decatur and Lima — expands local footprint and revenue base, which can help future growth and scale. Gray Media and Block Communications Close Station Transaction
• Neutral Sentiment: Reported Q1 revenue of $768.0M, essentially in line with estimates; management published a press release and slide deck for investors to review operational details. Revenue stability can be seen as steady but not accelerating. View Press Release
• Neutral Sentiment: Wall‑street coverage article highlights brokers recommending GTN to investors; analyst commentary can increase trading volume and attention but doesn’t change fundamentals by itself. Brokers Suggest Investing in Gray Media (GTN)
• Neutral Sentiment: Local leadership hire (GM/Director of Sales for KBTX) announced — operationally relevant but unlikely to move the stock materially in the near term. Nicole Lewis Joins Gray Media as General Manager/Director of Sales of KBTX
• Negative Sentiment: Q1 EPS was a loss of ($0.34), missing the Zacks consensus loss of ($0.32) by $0.02; that small EPS miss, along with a negative net margin and negative ROE, is pressuring near‑term sentiment. Gray Media (GTN) Reports Q1 Loss, Beats Revenue Estimates
• Negative Sentiment: Updated Q2 FY2026 revenue guidance of $780.0M–$800.0M has a midpoint slightly below the $794.0M consensus, implying modest downside to near‑term expectations and contributing to caution among analysts and investors.

Wall Street Analysts Forecast Growth

GTN has been the topic of a number of recent analyst reports. Wall Street Zen upgraded shares of Gray Media from a "sell" rating to a "hold" rating in a research note on Saturday, February 28th. Barrington Research restated an "outperform" rating and set a $6.50 target price on shares of Gray Media in a research note on Tuesday, April 28th. Benchmark increased their price objective on shares of Gray Media from $10.00 to $12.00 and gave the company a "buy" rating in a report on Friday, February 27th. Guggenheim increased their price objective on shares of Gray Media from $7.00 to $8.00 and gave the company a "buy" rating in a report on Wednesday, March 4th. Finally, Wells Fargo & Company increased their price objective on shares of Gray Media from $5.50 to $6.00 and gave the company an "equal weight" rating in a report on Monday, March 2nd. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Gray Media presently has a consensus rating of "Hold" and a consensus price target of $8.13.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Acadian Asset Management LLC purchased a new position in shares of Gray Media in the first quarter valued at $28,000. Abel Hall LLC purchased a new position in shares of Gray Media in the first quarter valued at $49,000. CANADA LIFE ASSURANCE Co grew its holdings in shares of Gray Media by 68.2% in the fourth 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 in the last quarter. M&T Bank Corp purchased a new position in shares of Gray Media in the fourth quarter valued at $51,000. Finally, AXQ Capital LP purchased a new position in shares of Gray Media in the fourth quarter valued at $54,000. 78.64% of the stock is owned by hedge funds and other institutional investors.

Gray Media Stock Performance

The business's fifty day moving average is $5.14 and its two-hundred day moving average is $4.86. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 2.66. The stock has a market capitalization of $494.51 million, a PE ratio of -3.40 and a beta of 1.04.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.