Townsquare Media (NYSE:TSQ) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded Townsquare Media (NYSE: TSQ) from hold to strong sell, adding to a mixed analyst picture that currently averages a Reduce rating with a $10.00 price target.
• The company’s latest quarterly results missed expectations, reporting EPS of -$0.16 versus the expected -$0.12, while revenue of $96.10 million also came in slightly below estimates.
• Insider selling has been notable, with COO Erik Hellum and CAO Robert L. Worshek both selling shares in recent transactions, even as institutional investors continue to hold the majority of the stock.

Townsquare Media (NYSE:TSQ - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Monday,Zacks.com reports.

TSQ has been the topic of a number of other research reports. Weiss Ratings raised Townsquare Media from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday. Wall Street Zen raised shares of Townsquare Media from a "hold" rating to a "buy" rating in a research note on Saturday, May 16th. Finally, Barrington Research reiterated an "outperform" rating and issued a $10.00 target price on shares of Townsquare Media in a report on Monday, May 11th. One analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Townsquare Media presently has an average rating of "Reduce" and an average price target of $10.00.

Townsquare Media Stock Performance

NYSE TSQ opened at $6.78 on Monday. The stock has a market capitalization of $115.89 million, a P/E ratio of -15.76, a P/E/G ratio of 2.68 and a beta of 1.20. Townsquare Media has a 1 year low of $4.30 and a 1 year high of $9.31. The business's fifty day moving average is $6.61 and its two-hundred day moving average is $6.37.

Townsquare Media (NYSE:TSQ - Get Free Report) last announced its quarterly earnings data on Monday, May 11th. The company reported ($0.16) EPS for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.04). The company had revenue of $96.10 million for the quarter, compared to analyst estimates of $96.46 million. Townsquare Media had a negative net margin of 1.59% and a negative return on equity of 7.41%. On average, research analysts forecast that Townsquare Media will post 0.21 earnings per share for the current year.

Insider Buying and Selling at Townsquare Media

In related news, COO Erik Hellum sold 35,000 shares of the stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $6.44, for a total value of $225,400.00. Following the completion of the sale, the chief operating officer directly owned 914,542 shares of the company's stock, valued at approximately $5,889,650.48. This represents a 3.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Robert L. Worshek sold 34,299 shares of the stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $6.62, for a total value of $227,059.38. Following the completion of the sale, the chief accounting officer directly owned 142,722 shares of the company's stock, valued at approximately $944,819.64. This represents a 19.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 30.30% of the stock is currently owned by insiders.

Institutional Trading of Townsquare Media

A number of hedge funds have recently made changes to their positions in TSQ. Gamco Investors INC. ET AL increased its stake in Townsquare Media by 3.3% in the 1st quarter. Gamco Investors INC. ET AL now owns 384,518 shares of the company's stock valued at $2,088,000 after buying an additional 12,300 shares during the period. Cetera Investment Advisers bought a new stake in Townsquare Media in the first quarter worth $129,000. XTX Topco Ltd acquired a new position in Townsquare Media during the fourth quarter worth $83,000. Susquehanna International Group LLP acquired a new position in Townsquare Media during the third quarter worth $144,000. Finally, Algert Global LLC bought a new position in Townsquare Media during the third quarter valued at about $72,000. 71.69% of the stock is owned by hedge funds and other institutional investors.

About Townsquare Media

Townsquare Media, Inc NYSE: TSQ is a diversified media and entertainment company that operates primarily in small and mid-sized markets across the United States. The company owns and manages over 300 local radio stations that deliver music, news, sports and community programming to listeners. In addition to its core broadcasting business, Townsquare Media provides digital marketing solutions and advertising services through its proprietary platforms and specialized agencies, helping local businesses connect with consumers via targeted online campaigns.

Founded in 2010 and headquartered in Purchase, New York, Townsquare Media has grown its footprint through strategic acquisitions and the development of a broad digital portfolio.

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