TEGNA (NYSE:TGNA) Hits New 52-Week High - What's Next?

Key Points

• 52-week high: Shares of TEGNA rose to a new 52-week high of $21.90 on Friday amid trading activity tied to the merger becoming effective.
• Nexstar acquisition — approvals and legal risk: The FCC granted approvals and Nexstar announced the $6.2 billion deal as closed, but a coalition of eight states, California's attorney general and DirecTV have filed antitrust suits that create material legal risk and could delay, modify or unwind the transaction.
• Financials and payout: TEGNA beat quarterly EPS estimates ($0.50 vs. $0.45) while revenue fell about 18.9% year-over-year; the company announced a $0.125 quarterly dividend (2.3% yield) and carries an average analyst rating of "Hold" with a $19.75 price target.

Shares of TEGNA Inc. (NYSE:TGNA - Get Free Report) hit a new 52-week high on Friday . The company traded as high as $21.90 and last traded at $21.8950, with a volume of 33969 shares changing hands. The stock had previously closed at $20.03.

Trending Headlines about TEGNA

Here are the key news stories impacting TEGNA this week:

• Positive Sentiment: FCC and federal approval steps cleared the path for Nexstar’s purchase of TEGNA, removing a major regulatory hurdle and supporting the deal’s close. Read More.
• Positive Sentiment: The FCC’s Media Bureau granted approval and an ownership-cap waiver for Nexstar’s acquisition, which market participants viewed as a catalyst for immediate deal completion. Read More.
• Positive Sentiment: Nexstar announced the Tegna merger as closed with federal approval, a formal milestone that typically supports deal consideration and integration planning. Read More.
• Neutral Sentiment: Trading in TGNA was briefly halted with the exchange reason listed as “Merger Effective,” a technical step tied to the transaction close rather than new fundamental news.
• Negative Sentiment: A coalition of eight states filed suit to block the Nexstar–Tegna combination on antitrust grounds, introducing material legal risk that could delay, modify or unwind aspects of the deal. Read More.
• Negative Sentiment: California’s attorney general (joined by other states) sued to block the $6.2B merger, amplifying litigation risk and potential remedies that could affect future cash flows and integration. Read More.
• Negative Sentiment: DirecTV also filed suit seeking to block the deal on antitrust grounds, adding a commercial counterparty legal challenge that increases the odds of a protracted court battle. Read More.

Analyst Ratings Changes

Several brokerages recently weighed in on TGNA. Weiss Ratings restated a "hold (c)" rating on shares of TEGNA in a research report on Monday, December 29th. Zacks Research upgraded TEGNA from a "strong sell" rating to a "hold" rating in a research report on Monday, January 12th. One analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $19.75.

TEGNA Price Performance

The company has a debt-to-equity ratio of 0.80, a current ratio of 2.28 and a quick ratio of 2.28. The stock has a market cap of $3.55 billion, a price-to-earnings ratio of 16.22 and a beta of 0.12. The business's 50-day simple moving average is $19.99 and its two-hundred day simple moving average is $19.99.

TEGNA (NYSE:TGNA - Get Free Report) last announced its quarterly earnings results on Monday, March 2nd. The company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.05. TEGNA had a net margin of 8.11% and a return on equity of 8.60%. The company had revenue of $706.11 million during the quarter, compared to the consensus estimate of $701.29 million. During the same period in the prior year, the business earned $1.21 earnings per share. The company's revenue for the quarter was down 18.9% compared to the same quarter last year. Research analysts expect that TEGNA Inc. will post 3.02 earnings per share for the current year.

TEGNA Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Tuesday, March 10th will be issued a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Tuesday, March 10th. TEGNA's dividend payout ratio is presently 37.04%.

Institutional Trading of TEGNA

A number of hedge funds have recently made changes to their positions in the company. Financial Consulate Inc. bought a new position in TEGNA in the 3rd quarter valued at approximately $29,000. Federated Hermes Inc. grew its holdings in TEGNA by 85.4% during the 3rd quarter. Federated Hermes Inc. now owns 1,852 shares of the company's stock worth $38,000 after acquiring an additional 853 shares during the last quarter. Smartleaf Asset Management LLC increased its position in TEGNA by 160.4% in the 3rd quarter. Smartleaf Asset Management LLC now owns 2,377 shares of the company's stock valued at $48,000 after acquiring an additional 1,464 shares during the period. Measured Wealth Private Client Group LLC acquired a new position in TEGNA in the 3rd quarter valued at approximately $51,000. Finally, Bayforest Capital Ltd bought a new position in shares of TEGNA during the fourth quarter valued at $53,000. 92.19% of the stock is owned by institutional investors and hedge funds.

TEGNA Company Profile

TEGNA Inc is a leading U.S. broadcast and digital media company that was formed as a spin-off from Gannett Co, Inc in June 2015. The company's primary operations include the ownership and operation of local television stations, digital publishing platforms and marketing solutions designed to serve both national advertisers and local businesses. Through its portfolio of media assets, TEGNA delivers news, information and entertainment across multiple platforms, including over-the-air broadcasts, cable and satellite distribution, streaming services and proprietary websites and mobile apps.

TEGNA owns and operates approximately 60 television stations in 51 markets, reaching nearly 40 percent of U.S.

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