Gray Media (NYSE:GTN) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Gray Media shares surged 18.3%, opening at $4.75 versus a prior close of $4.28, after the company reported quarterly EPS of $0.21—well above the expected loss of $0.08—and revenue of $839 million, up 8.7% year over year.
• Despite the earnings beat, Gray Media remains unprofitable, with a negative net margin of 3.12% and return on equity of 3.07%; its debt-to-equity ratio was 2.72.
• Analyst sentiment is mixed: the stock has an average “Hold” rating and a consensus price target of $7.88, while institutional investors own 78.64% of shares and a company director recently sold 57,000 shares to cover tax obligations.

Gray Media Inc. (NYSE:GTN - Get Free Report) shares gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $4.28, but opened at $4.75. Gray Media shares last traded at $5.0750, with a volume of 312,088 shares trading hands.

The company reported $0.21 EPS for the quarter, beating the consensus estimate of ($0.08) by $0.29. Gray Media had a negative net margin of 3.12% and a negative return on equity of 3.07%. The business had revenue of $839.00 million for the quarter, compared to analysts' expectations of $795.13 million. During the same period in the previous year, the company posted ($0.71) EPS. Gray Media's revenue was up 8.7% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Guggenheim dropped their target price on Gray Media from $8.00 to $7.00 and set a "buy" rating on the stock in a research report on Friday, May 15th. Weiss Ratings lowered Gray Media from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday, May 15th. Barrington Research reissued an "outperform" rating and issued a $6.50 price target on shares of Gray Media in a research note on Tuesday, April 28th. Finally, Wall Street Zen upgraded Gray Media from a "sell" rating to a "hold" rating in a report on Sunday, May 17th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $7.88.

Insider Buying and Selling at Gray Media

In other news, Director Richard Lee Boger sold 57,000 shares of the company's stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $4.40, for a total transaction of $250,800.00. Following the completion of the sale, the director owned 4,591 shares in the company, valued at approximately $20,200.40. This represents a 92.55% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 8.95% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Gray Media

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Capital Management Corp VA raised its holdings in Gray Media by 4.1% in the 4th quarter. Capital Management Corp VA now owns 6,149,022 shares of the company's stock worth $29,761,000 after acquiring an additional 242,525 shares during the period. Aristeia Capital L.L.C. bought a new stake in Gray Media during the fourth quarter valued at about $757,000. Miller Value Partners LLC boosted its holdings in Gray Media by 12.1% during the fourth quarter. Miller Value Partners LLC now owns 3,988,495 shares of the company's stock valued at $19,304,000 after acquiring an additional 430,280 shares during the period. Segall Bryant & Hamill LLC bought a new stake in Gray Media during the first quarter valued at about $1,241,000. Finally, Indivisible Partners acquired a new stake in shares of Gray Media in the fourth quarter valued at about $557,000. 78.64% of the stock is currently owned by institutional investors and hedge funds.

Gray Media Trading Up 18.3%

The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 2.72. The company has a 50-day moving average price of $3.98 and a 200-day moving average price of $4.51. The company has a market capitalization of $520.17 million, a price-to-earnings ratio of -3.31 and a beta of 0.94.

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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