OUTFRONT Media (NYSE:OUT) Shares Gap Down Following Weak Earnings

Key Points

• OUTFRONT Media shares fell sharply after quarterly EPS came in at $0.36, below the $0.39 consensus; revenue of $511.1 million slightly exceeded estimates.
• The company declared a quarterly dividend of $0.33 per share, equivalent to a 4.5% annual yield.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $34.00.

OUTFRONT Media Inc. (NYSE:OUT - Get Free Report)'s stock price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $32.00, but opened at $28.62. OUTFRONT Media shares last traded at $29.5940, with a volume of 256,435 shares trading hands.

The financial services provider reported $0.36 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.03). The company had revenue of $511.10 million for the quarter, compared to the consensus estimate of $509.74 million. OUTFRONT Media had a return on equity of 37.44% and a net margin of 12.66%.

OUTFRONT Media Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Friday, December 4th will be paid a dividend of $0.33 per share. The ex-dividend date is Friday, December 4th. This represents a $1.32 annualized dividend and a yield of 4.5%. OUTFRONT Media's dividend payout ratio is presently 94.96%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Citigroup reiterated a "buy" rating on shares of OUTFRONT Media in a report on Tuesday, September 8th. TD Cowen reissued a "buy" rating and set a $40.00 price target (up from $38.00) on shares of OUTFRONT Media in a research report on Thursday, August 6th. Wall Street Zen cut OUTFRONT Media from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 26th. JPMorgan Chase & Co. started coverage on OUTFRONT Media in a research note on Wednesday, July 22nd. They set an "overweight" rating and a $38.00 price objective on the stock. Finally, Wells Fargo & Company lifted their price objective on shares of OUTFRONT Media from $35.00 to $38.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Six equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $34.00.

Insider Buying and Selling

In other OUTFRONT Media news, EVP Mark Emilio Bonanni sold 3,385 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $29.82, for a total value of $100,940.70. Following the sale, the executive vice president directly owned 10,420 shares of the company's stock, valued at $310,724.40. This trade represents a 24.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Matthew Siegel sold 25,000 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $27.84, for a total value of $696,000.00. Following the completion of the sale, the executive vice president directly owned 264,925 shares in the company, valued at $7,375,512. This represents a 8.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.45% of the company's stock.

Hedge Funds Weigh In On OUTFRONT Media

Several hedge funds and other institutional investors have recently modified their holdings of OUT. CENTRAL TRUST Co boosted its stake in OUTFRONT Media by 164.9% during the 3rd quarter. CENTRAL TRUST Co now owns 2,752 shares of the financial services provider's stock valued at $76,000 after purchasing an additional 1,713 shares during the period. Maryland State Retirement & Pension System increased its stake in shares of OUTFRONT Media by 76.2% in the third quarter. Maryland State Retirement & Pension System now owns 39,256 shares of the financial services provider's stock valued at $1,089,000 after purchasing an additional 16,977 shares during the period. M&G PLC acquired a new stake in shares of OUTFRONT Media in the third quarter valued at approximately $253,000. Allspring Global Investments Holdings LLC bought a new stake in shares of OUTFRONT Media during the third quarter valued at approximately $1,549,000. Finally, Ethic Inc. bought a new stake in shares of OUTFRONT Media during the third quarter valued at approximately $273,000.

OUTFRONT Media Stock Performance

The company has a debt-to-equity ratio of 3.50, a current ratio of 0.67 and a quick ratio of 0.67. The stock has a fifty day moving average price of $29.66 and a two-hundred day moving average price of $29.67. The company has a market cap of $5.12 billion, a P/E ratio of 20.90 and a beta of 1.56.

OUTFRONT Media Company Profile

OUTFRONT Media Inc NYSE: OUT is an out-of-home media company that provides advertising services through a portfolio of billboard, transit and other outdoor advertising assets. The company helps advertisers reach consumers in high-traffic locations, including roads, urban centers, public transportation systems and other public spaces.

Its offerings include traditional printed billboards, digital billboards, transit displays and place-based media. OUTFRONT also provides related services such as media planning, creative support, audience analytics and technology-enabled advertising solutions, including digital and programmatic buying capabilities.

OUTFRONT primarily serves advertisers across the United States and Canada.

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