Grupo Televisa (NYSE:TV) Trading Down 3.9% - Should You Sell?

Key Points

• Grupo Televisa's shares fell 3.9% to $2.62 during trading, with a significant volume decrease of 67% compared to the average daily trading volume.
• Several analysts have recently issued mixed ratings for Grupo Televisa, with target price increases from Goldman Sachs and Benchmark, while Wall Street Zen downgraded its rating from "buy" to "hold."
• The company has a negative net margin of 13.56% and a high dividend yield of 390.0%, raising concerns about its financial health and dividend sustainability.

Shares of Grupo Televisa S.A. (NYSE:TV - Get Free Report) dropped 3.9% during trading on Monday . The company traded as low as $2.61 and last traded at $2.62. Approximately 719,975 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 2,187,446 shares. The stock had previously closed at $2.72.

Analyst Ratings Changes

TV has been the topic of several recent analyst reports. The Goldman Sachs Group boosted their target price on Grupo Televisa from $1.80 to $2.20 and gave the stock a "buy" rating in a report on Wednesday, May 21st. Benchmark boosted their target price on Grupo Televisa from $7.00 to $9.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. UBS Group boosted their target price on Grupo Televisa from $2.40 to $2.50 and gave the stock a "neutral" rating in a report on Tuesday, July 29th. Finally, Wall Street Zen cut Grupo Televisa from a "buy" rating to a "hold" rating in a report on Friday, May 30th. Three research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $4.57.

Grupo Televisa Price Performance

The company's fifty day moving average is $2.23 and its two-hundred day moving average is $2.00. The firm has a market capitalization of $1.43 billion, a price-to-earnings ratio of -3.43, a price-to-earnings-growth ratio of 1.70 and a beta of 1.97. The company has a quick ratio of 2.33, a current ratio of 2.35 and a debt-to-equity ratio of 0.03.

Grupo Televisa (NYSE:TV - Get Free Report) last released its earnings results on Tuesday, July 22nd. The company reported $0.05 earnings per share for the quarter, beating analysts' consensus estimates of ($0.01) by $0.06. The business had revenue of $787.59 million during the quarter, compared to the consensus estimate of $14.96 billion. Grupo Televisa had a negative net margin of 13.56% and a negative return on equity of 6.95%. Equities research analysts anticipate that Grupo Televisa S.A. will post -0.07 earnings per share for the current fiscal year.

Grupo Televisa Cuts Dividend

The firm also recently announced an annual dividend, which was paid on Thursday, June 12th. Shareholders of record on Friday, May 30th were issued a dividend of $0.0908 per share. This represents a yield of 390.0%. The ex-dividend date of this dividend was Friday, May 30th. Grupo Televisa's payout ratio is presently -10.67%.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of TV. Acadian Asset Management LLC raised its stake in Grupo Televisa by 99.9% in the first quarter. Acadian Asset Management LLC now owns 7,688,871 shares of the company's stock valued at $13,440,000 after purchasing an additional 3,842,375 shares in the last quarter. GFS Advisors LLC purchased a new position in shares of Grupo Televisa during the second quarter worth approximately $4,692,000. Itau Unibanco Holding S.A. raised its stake in shares of Grupo Televisa by 13,477.4% during the fourth quarter. Itau Unibanco Holding S.A. now owns 1,749,042 shares of the company's stock worth $2,938,000 after acquiring an additional 1,736,160 shares in the last quarter. Gamco Investors INC. ET AL raised its stake in shares of Grupo Televisa by 4.8% during the first quarter. Gamco Investors INC. ET AL now owns 17,946,426 shares of the company's stock worth $31,406,000 after acquiring an additional 827,363 shares in the last quarter. Finally, Gabelli Funds LLC raised its stake in shares of Grupo Televisa by 4.3% during the first quarter. Gabelli Funds LLC now owns 7,090,600 shares of the company's stock worth $12,409,000 after acquiring an additional 294,300 shares in the last quarter. Institutional investors and hedge funds own 55.77% of the company's stock.

About Grupo Televisa

Grupo Televisa, SAB., together with its subsidiaries, owns and operates cable companies and provides direct-to-home satellite pay television system in Mexico and the United States. It operates through three segments: Cable, Sky, and Other Businesses. The Cable segment operates cable multiple system that provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone and mobile services subscription, as well as local and national advertising services; and telecommunication facilities, which offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network.

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