New York Times (NYSE:NYT) Shares Break Above Fifty Day Moving Average - Here's Why

Key Points

• NYT shares moved above their 50-day moving average, trading as high as $68.52 and last quoted at $68.33, compared with the average of $67.29.
• The company beat third-quarter estimates, with EPS of $0.68 versus $0.65 expected and revenue up 9.7% year over year to $768.5 million, supported by digital subscriptions and advertising.
• NYT is reportedly in talks to acquire Letterboxd for about $330 million, though the deal’s financial impact is unclear. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $82.80.

The New York Times Company (NYSE:NYT - Get Free Report)'s share price crossed above its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $67.29 and traded as high as $68.52. New York Times shares last traded at $68.3320, with a volume of 3,226,995 shares traded.

Key Headlines Impacting New York Times

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

• Positive Sentiment: NYT beat third-quarter earnings and revenue estimates. EPS was $0.68 versus expectations of $0.65, while revenue rose 9.7% year over year to $768.5 million. Digital subscriber growth, higher subscription revenue and stronger advertising supported growth and margin expansion. The New York Times Q3 Earnings Beat on Digital Subscription Growth
• Neutral Sentiment: Reports say NYT is in advanced or exclusive talks to acquire film-focused social network Letterboxd for roughly $330 million. The deal could broaden the company’s audience and businesses, but its financial impact is uncertain until terms and a transaction are confirmed. New York Times Company in advanced talks to acquire Letterboxd for roughly $330 million
• Negative Sentiment: Barclays raised its price target to $64 from $63 but kept an “equal weight” rating. The target remains below the $68.33 price cited in the report, signaling limited expected upside from the analyst’s perspective. Barclays price target update

Wall Street Analysts Forecast Growth

Several brokerages have commented on NYT. UBS Group set a $82.00 price target on New York Times in a research note on Tuesday, September 15th. Morgan Stanley dropped their price objective on shares of New York Times from $90.00 to $75.00 and set an "equal weight" rating on the stock in a research note on Sunday, October 11th. Barclays raised their price objective on New York Times from $63.00 to $64.00 and gave the company an "equal weight" rating in a research note on Thursday. Guggenheim upgraded New York Times from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $70.00 to $82.00 in a research note on Tuesday, September 15th. Finally, Weiss Ratings upgraded shares of New York Times from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $82.80.

New York Times Trading Up 4.2%

The firm has a market capitalization of $11.02 billion, a P/E ratio of 27.33, a price-to-earnings-growth ratio of 1.81 and a beta of 0.89. The business has a 50-day moving average of $67.29 and a 200 day moving average of $73.25.

New York Times (NYSE:NYT - Get Free Report) last issued its earnings results on Wednesday, November 4th. The company reported $0.68 EPS for the quarter, beating analysts' consensus estimates of $0.65 by $0.03. New York Times had a return on equity of 22.64% and a net margin of 13.19%. The company had revenue of $768.54 million during the quarter, compared to the consensus estimate of $767.21 million. During the same period in the previous year, the firm posted $0.59 earnings per share. New York Times's quarterly revenue was up 9.7% compared to the same quarter last year. As a group, research analysts forecast that The New York Times Company will post 2.84 EPS for the current year.

New York Times Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 22nd. Shareholders of record on Wednesday, October 7th were paid a $0.23 dividend. The ex-dividend date was Wednesday, October 7th. This represents a $0.92 dividend on an annualized basis and a yield of 1.3%. New York Times's dividend payout ratio (DPR) is presently 38.33%.

Institutional Investors Weigh In On New York Times

A number of hedge funds have recently modified their holdings of the stock. Renaissance Technologies LLC raised its position in New York Times by 20.3% during the 1st quarter. Renaissance Technologies LLC now owns 2,756,180 shares of the company's stock worth $230,775,000 after buying an additional 465,600 shares during the last quarter. First Trust Advisors LP grew its stake in shares of New York Times by 0.9% in the 1st quarter. First Trust Advisors LP now owns 1,570,073 shares of the company's stock valued at $131,462,000 after purchasing an additional 14,202 shares during the last quarter. Bank of New York Mellon Corp grew its stake in shares of New York Times by 3.0% in the first quarter. Bank of New York Mellon Corp now owns 1,512,403 shares of the company's stock worth $126,633,000 after purchasing an additional 43,796 shares in the last quarter. Janus Henderson Group PLC grew its position in shares of New York Times by 30.3% in the 1st quarter. Janus Henderson Group PLC now owns 761,118 shares of the company's stock valued at $63,740,000 after purchasing an additional 177,045 shares during the period. Finally, Boston Trust Walden Corp increased its holdings in New York Times by 12.8% during the 3rd quarter. Boston Trust Walden Corp now owns 802,007 shares of the company's stock worth $51,088,000 after purchasing an additional 90,693 shares in the last quarter. Institutional investors own 95.37% of the company's stock.

About New York Times

The New York Times Company NYSE: NYT is a media and technology company best known for publishing The New York Times, a daily newspaper founded in 1851 by Henry Jarvis Raymond and George Jones. The company produces journalism across national and international news, business, politics, culture, science, sports and other topics through print and digital platforms.

In addition to its core news operation, the company offers a range of subscription products and digital services, including NYT Cooking, Games, Audio and The Athletic, a subscription-based sports media platform.

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.