New York Times (NYSE:NYT) Downgraded by Zacks Research to Hold

Key Points

• Zacks Research downgraded New York Times from “strong buy” to “hold,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $82.89.
• NYT reported quarterly earnings of $0.69 per share, beating estimates, while revenue rose 11.2% year over year to $762.46 million, supported by digital subscriptions and advertising.
• The stock opened at $63.53 after falling 1.9% and trades below its 50-day and 200-day moving averages; concerns include moderating subscriber growth, rising costs and valuation risk.

New York Times (NYSE:NYT - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Thursday,Zacks.com reports.

A number of other research analysts have also weighed in on the company. Morgan Stanley set a $90.00 target price on New York Times in a report on Thursday, May 7th. Weiss Ratings reissued a "buy (b)" rating on shares of New York Times in a research report on Friday, July 17th. Guggenheim boosted their target price on shares of New York Times from $63.00 to $70.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. Citigroup reiterated a "neutral" rating on shares of New York Times in a research report on Wednesday, June 24th. Finally, Barclays dropped their target price on New York Times from $66.00 to $63.00 and set an "equal weight" rating for the company in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, New York Times presently has an average rating of "Moderate Buy" and an average target price of $82.89.

New York Times Stock Down 1.9%

New York Times stock opened at $63.53 on Thursday. The company has a 50 day moving average of $73.26 and a 200-day moving average of $76.13. New York Times has a twelve month low of $54.10 and a twelve month high of $87.10. The stock has a market capitalization of $10.28 billion, a PE ratio of 26.47, a price-to-earnings-growth ratio of 1.34 and a beta of 0.95.

New York Times (NYSE:NYT - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.67 by $0.02. New York Times had a return on equity of 22.64% and a net margin of 13.19%.The business had revenue of $762.46 million for the quarter, compared to analyst estimates of $752.01 million. During the same quarter last year, the firm earned $0.58 EPS. New York Times's revenue for the quarter was up 11.2% compared to the same quarter last year. Equities analysts anticipate that New York Times will post 2.92 EPS for the current fiscal year.

Insider Activity at New York Times

In other New York Times news, Director David S. Perpich sold 9,000 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $77.06, for a total value of $693,540.00. Following the completion of the transaction, the director owned 28,469 shares of the company's stock, valued at $2,193,821.14. The trade was a 24.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Jacqueline M. Welch sold 4,000 shares of the stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $74.14, for a total value of $296,560.00. Following the transaction, the executive vice president owned 23,873 shares in the company, valued at $1,769,944.22. This trade represents a 14.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 17,121 shares of company stock worth $1,310,920. Company insiders own 1.90% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in NYT. Wedge Capital Management L L P NC boosted its holdings in shares of New York Times by 7.5% during the second quarter. Wedge Capital Management L L P NC now owns 478,416 shares of the company's stock worth $33,480,000 after purchasing an additional 33,552 shares during the period. Hennion & Walsh Asset Management Inc. boosted its holdings in shares of New York Times by 174.9% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 28,981 shares of the company's stock valued at $2,028,000 after buying an additional 18,438 shares in the last quarter. Versant Capital Management Inc grew its holdings in New York Times by 940.4% in the second quarter. Versant Capital Management Inc now owns 1,186 shares of the company's stock worth $83,000 after purchasing an additional 1,072 shares during the period. Basecamp Wealth Advisors LLC increased its position in New York Times by 1,191.7% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 310 shares of the company's stock valued at $26,000 after buying an additional 286 shares in the last quarter. Finally, Pacer Advisors Inc. raised its position in shares of New York Times by 12.8% in the 1st quarter. Pacer Advisors Inc. now owns 48,909 shares of the company's stock worth $4,095,000 after purchasing an additional 5,558 shares during the last quarter. 95.37% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting New York Times

Here are the key news stories impacting New York Times this week:

• Positive Sentiment: Q2 results exceeded expectations. The New York Times reported earnings of $0.69 per share versus the $0.67 consensus estimate, while revenue rose 11.2% year over year to $762.5 million, helped by digital subscriptions, higher average revenue per user and stronger digital advertising. The New York Times Q2 Earnings Beat Estimates as Digital Ads Rise
• Positive Sentiment: Digital growth and pricing power support the long-term investment case. The company’s subscription ecosystem, ability to raise prices and continued digital expansion could support recurring revenue and profitability over time. Should Investors Buy Hold or Wait on NYT Amid Growth and Valuation
• Positive Sentiment: Options activity points to some bullish positioning. Investors purchased NYT call options in unusually high volume, suggesting that some market participants anticipate a rebound or further upside, although options activity is speculative and does not change the company’s fundamentals. Investors Buy High Volume of New York Times Call Options
• Neutral Sentiment: Recent weakness has created a valuation debate. NYT shares have decreased 12.8% over the past month and trade below their 50-day and 200-day moving averages. That decline could attract value-oriented buyers, but investors remain divided over whether the stock’s valuation adequately reflects its growth prospects. NYT Stock Fell 12.8% in One Month Can Weakness Create Opportunity
• Negative Sentiment: Subscriber momentum moderated. While digital performance remained strong, slower subscriber additions raise concerns about how easily NYT can sustain its growth rate and expand its subscription base.
• Negative Sentiment: Costs and valuation remain headwinds. Rising expenses could limit margin expansion, while the stock’s valuation leaves less room for execution setbacks. These concerns are contributing to a “hold or wait” stance among some investors. NYT Earnings Show Digital Growth as Subscriber Momentum Moderates

About New York Times

The New York Times Company is a publicly traded media organization best known for publishing The New York Times newspaper and operating the NYTimes.com digital platform. The company produces daily print and digital journalism covering national and international news, opinion pieces, feature stories, and multimedia content. Alongside its flagship newspaper, the firm offers a range of subscription-based services, including Times Cooking, NYT Games, podcasts and newsletters, designed to engage a broad audience of readers and advertisers.

Founded in 1851 by Henry Jarvis Raymond and George Jones, The New York Times has built a reputation for in-depth reporting and investigative journalism.

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.

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