Why Gannett Co Inc (NYSE:GCI) is an Excellent Choice?
[Seeking Alpha] Gannett Co Inc (NYSE:GCI)(TREND ANALYSIS) is continuing its pursuit of the funny-named newspaper company tronc.
A buying spree has made it impossible for Gannett to buy back its own stock.
GCI’s shareholders would be better served with buybacks.
Is noted newspaper shark Gannett (NYSE:GCI) chasing tronc (NASDAQ:TRNC) too far?
Gannett’s initial $12.25 a share offer for its fellow newspaper publisher became public in April. The company raised its bid to $15 in May ($864 million including debt), saying the offer would remain on the table through August.
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Gannett Co Inc (NYSE:GCI) stock is currently trading 32.16% below its 52-week-high, 5.47% above its 52-week-low. The 1-year stock price history is in the range of $11.52 – $17.91. Gannett Co Inc (GCI) has a price to earnings ratio of 13.92 versus Services sector average of 20.03. GCI stock price has underperformed the S&P 500 by 32.4%. The Newspapers Publishing company is currently valued at $1.42 billion, and its share price closed the last trading session at $12.15. The stock has a 50-day moving average of $13.26 and a 200-day moving average of $14.83.
Gannett Co Inc (GCI) current short interest stands at 7.67 million shares. It has decreased by 2% from the same period of last month. Around 8% of the company’s shares, which are float, are short sold. With a 10-days average volume of 1.2 million shares, the number of days required to cover the short positions stand at 6.4 days.
GCI is forecasted to report earnings per share of $0.16 and a revenue of $753.89 million for the 3rd Quarter of the fiscal year 2016. Gannett Co Inc (GCI) declared last quarter earnings on July 27. The Newspapers Publishing company announced last quarter earnings per share of $0.30 against a consensus Street estimate of $0.30, matching the average estimate. The company posted a revenue of $748.8 million compared to an estimation of $787.1 million.
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There are currently six analysts that cover Gannett Co Inc stock. Of those six, three have a Buy rating, three have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $16.
A recent analyst activity consisted of Jefferies reiterating their Hold stance on July 28. Jefferies decreased price target from $15 to $14. This corresponds to a 15.23% upside from the last closing price. On the date of report, the stock closed at $12.74.
Argus Research upgraded their Hold rating to Buy on November 5. On the date of report, the stock closed at $16.37.
Gannett Co., Inc. is an international news and information company that publishes various daily newspapers in the United States and the United Kingdom, including “USA TODAY” and “USA WEEKEND,” a newspaper magazine. The Company also operates television stations in major United States markets as well as operates websites offering news, information and advertising. http://www.streetreport.co/why-gannett-co-inc-nysegci-is-an-excellent-choice/52406/