Ziff Davis (NASDAQ:ZD) Stock Price Up 11.7% Following Strong Earnings

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 stock price rose 11.7% during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $35.34 and last traded at $34.63. Approximately 213,937 shares changed hands during trading, a decline of 60% from the average daily volume of 533,273 shares. The stock had previously closed at $30.99.

The technology company reported $1.24 EPS for the quarter, topping analysts' consensus estimates of $1.22 by $0.02. The company had revenue of $352.21 million for the quarter, compared to the consensus estimate of $337.47 million. Ziff Davis had a return on equity of 13.89% and a net margin of 5.41%. The company's quarterly revenue was up 10.0% compared to the same quarter last year. During the same period last year, the business posted $1.18 EPS.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Wall Street Zen lowered Ziff Davis from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. JPMorgan Chase & Co. lowered Ziff Davis from an "overweight" rating to a "neutral" rating and lowered their price objective for the company from $60.00 to $33.00 in a research note on Tuesday, April 22nd. Barclays lowered their price objective on Ziff Davis from $48.00 to $34.00 and set an "equal weight" rating for the company in a research note on Tuesday, May 13th. UBS Group set a $40.00 price objective on Ziff Davis and gave the company a "neutral" rating in a research note on Wednesday, May 14th. Finally, Citigroup reduced their target price on Ziff Davis from $52.00 to $35.00 and set a "neutral" rating on the stock in a report on Friday, April 25th. Five equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $47.00.

Institutional Trading of Ziff Davis

Several hedge funds have recently added to or reduced their stakes in ZD. Bastion Asset Management Inc. acquired a new position in shares of Ziff Davis during the 2nd quarter valued at $1,029,000. Bank of Montreal Can increased its position in shares of Ziff Davis by 84.4% during the 2nd quarter. Bank of Montreal Can now owns 12,472 shares of the technology company's stock valued at $378,000 after purchasing an additional 5,709 shares during the period. Atria Investments Inc increased its position in shares of Ziff Davis by 17.8% during the 2nd quarter. Atria Investments Inc now owns 13,860 shares of the technology company's stock valued at $420,000 after purchasing an additional 2,096 shares during the period. IQ EQ FUND MANAGEMENT IRELAND Ltd acquired a new position in shares of Ziff Davis during the 2nd quarter valued at $1,967,000. Finally, Teacher Retirement System of Texas increased its position in shares of Ziff Davis by 19.7% during the 2nd quarter. Teacher Retirement System of Texas now owns 36,484 shares of the technology company's stock valued at $1,104,000 after purchasing an additional 6,004 shares during the period. Institutional investors own 99.76% of the company's stock.

Ziff Davis Trading Up 12.9%

The company has a market capitalization of $1.47 billion, a price-to-earnings ratio of 21.20 and a beta of 1.63. The firm has a 50-day moving average price of $31.87 and a 200-day moving average price of $37.29. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 0.47.

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.

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