ITV (LON:ITV) Reaches New 52-Week Low - Should You Sell?

Key Points

• ITV shares fell to a new 52-week low of GBX 65.70 before recovering slightly to GBX 65.90, below the GBX 66.25 prior close.
• Analysts remain cautious: JPMorgan cut its price target to GBX 82, while Deutsche Bank maintained a “Hold” rating. ITV has an average “Hold” rating and a consensus target of GBX 83.50.
• Despite the stock weakness, ITV reported quarterly EPS of GBX 2.20, a 6.57% net margin and 13.15% return on equity; the company also authorized a share-repurchase plan, though it permits repurchasing zero shares.

ITV plc (LON:ITV - Get Free Report) shares reached a new 52-week low on Tuesday. The company traded as low as GBX 65.70 and last traded at GBX 65.90, with a volume of 2,196,688 shares trading hands. The stock had previously closed at GBX 66.25.

Wall Street Analyst Weigh In

ITV has been the subject of several analyst reports. JPMorgan Chase & Co. reduced their price objective on ITV from GBX 85 to GBX 82 and set a "neutral" rating for the company in a research report on Friday, August 14th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a GBX 85 target price on shares of ITV in a research report on Monday, August 3rd. Two research analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of GBX 83.50.

ITV Trading Up 0.6%

The firm has a market capitalization of £2.44 billion, a P/E ratio of 10.93, a PEG ratio of -0.53 and a beta of 0.80. The business's 50 day moving average is GBX 69.94 and its two-hundred day moving average is GBX 75.61. The company has a quick ratio of 0.83, a current ratio of 1.18 and a debt-to-equity ratio of 52.95.

ITV (LON:ITV - Get Free Report) last announced its earnings results on Friday, July 31st. The broadcaster reported GBX 2.20 earnings per share (EPS) for the quarter. ITV had a net margin of 6.57% and a return on equity of 13.15%. Analysts expect that ITV plc will post 1120.00 EPS for the current year.

ITV declared that its board has initiated a stock repurchase plan on Friday, July 31st that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the broadcaster to purchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its stock is undervalued.

ITV Company Profile

ITV is a producer, streamer and broadcaster, consisting of ITV Studios and Media & Entertainment (M&E). ITV Studios is a scaled global creator, owner and distributor of high-quality TV content, producing some of the most successful shows in the world. It operates in 13 countries, across 60+ labels and is diversified by genre, geography and customer in the key creative markets around the world. Media & Entertainment is the largest commercial streamer and broadcaster. Through M&E, we make brilliant British-focused content available on ITVX - our free, advertiser-funded streaming service - alongside our free-to-air linear TV channels.

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