Ziff Davis (NASDAQ:ZD) Trading 11.7% Higher After Earnings Beat

Key Points

• Ziff Davis's stock price increased by 11.7% following a stronger than expected earnings report, with the latest trading price at $34.63 compared to a previous close of $30.99.
• The company reported an earnings per share (EPS) of $1.24, exceeding analysts' expectations of $1.22, alongside revenue of $352.21 million against an estimate of $337.47 million.
• Despite positive earnings, several research analysts have downgraded Ziff Davis's ratings, resulting in a consensus recommendation of "Hold" and a target price of $47.00.

Ziff Davis, Inc. (NASDAQ:ZD - Get Free Report)'s share price shot up 11.7% on Thursday following a stronger than expected earnings report. The stock traded as high as $35.34 and last traded at $34.63. 213,937 shares changed hands during mid-day trading, a decline of 60% from the average session volume of 533,273 shares. The stock had previously closed at $30.99.

The technology company reported $1.24 earnings per share for the quarter, topping analysts' consensus estimates of $1.22 by $0.02. Ziff Davis had a net margin of 4.57% and a return on equity of 13.91%. The firm had revenue of $352.21 million for the quarter, compared to analysts' expectations of $337.47 million. During the same quarter in the previous year, the firm posted $1.18 earnings per share. The company's revenue was up 10.0% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on ZD. Wall Street Zen upgraded Ziff Davis from a "hold" rating to a "buy" rating in a research report on Saturday. JPMorgan Chase & Co. downgraded shares of Ziff Davis from an "overweight" rating to a "neutral" rating and decreased their price target for the stock from $60.00 to $33.00 in a research note on Tuesday, April 22nd. Susquehanna reduced their price objective on shares of Ziff Davis from $80.00 to $45.00 and set a "positive" rating on the stock in a research report on Monday, May 12th. UBS Group set a $40.00 target price on Ziff Davis and gave the company a "neutral" rating in a research report on Wednesday, May 14th. Finally, Citigroup cut their target price on shares of Ziff Davis from $52.00 to $35.00 and set a "neutral" rating on the stock in a research note on Friday, April 25th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $46.86.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in ZD. Nuveen LLC purchased a new stake in Ziff Davis in the first quarter valued at approximately $25,381,000. LSV Asset Management raised its stake in shares of Ziff Davis by 313.8% in the 2nd quarter. LSV Asset Management now owns 440,026 shares of the technology company's stock valued at $13,320,000 after purchasing an additional 333,680 shares in the last quarter. Janus Henderson Group PLC grew its position in Ziff Davis by 8.5% in the 4th quarter. Janus Henderson Group PLC now owns 3,487,495 shares of the technology company's stock worth $189,512,000 after purchasing an additional 272,895 shares during the last quarter. Pale Fire Capital SE acquired a new stake in Ziff Davis during the first quarter valued at approximately $9,370,000. Finally, Allspring Global Investments Holdings LLC increased its stake in Ziff Davis by 50.8% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 538,123 shares of the technology company's stock valued at $20,314,000 after buying an additional 181,234 shares during the period. Hedge funds and other institutional investors own 99.76% of the company's stock.

Ziff Davis Trading Down 5.4%

The company has a current ratio of 1.59, a quick ratio of 1.59 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $1.46 billion, a P/E ratio of 23.12 and a beta of 1.63. The business's fifty day simple moving average is $32.07 and its two-hundred day simple moving average is $36.80.

Ziff Davis Company Profile

Ziff Davis, Inc, together with its subsidiaries, operates as a digital media and internet company in the United States and internationally. The company offers PCMag, an online resource for laboratory-based product reviews, technology news, buying guides, and research papers; Mashable for publishing technology and culture content; Spiceworks Ziff Davis provides digital content of IT products and services; retailMeNot, a savings destination platform; Offers.com, a coupon and deals website; and event-based properties, including BlackFriday.com, TheBlackFriday.com, BestBlackFriday.com, and DealsofAmerica.com.