E. W. Scripps Co (NYSE:SSP) is showing signs of recovery after coming under pressure and dropping to $17 a share. Over the past one month, the stock has risen by more than 5%. Renewed investor interest in the stock follows the acquisition of Katz broadcast networks, which investors expect to strengthen the company’s footprint in the distribution of content to targeted audience.
Institutional Holding
Institutional and brokerage firms have already taken note of the stock’s bounce back seen by positive stock ratings and strengthening of holdings. Regulatory holdings indicate that Gamco Investors has upped its stake in the media enterprise to 11.33 million shares from 8.18 million shares. The holdings represent a 16.14% stake making the firm the largest investor in the Company.
Scripps Eaton is the second largest investor in E. W. Scripps Co (NYSE:SSP) with a holding of 12.14 million shares worth $216.17 million. Hedge fund Blackrock comes a distant third with a holding of 6.87 million shares worth $122.35 million shares.
Noble Financial is one of the equity firms bullish on E. W. Scrip’s prospects going forward. The firm has initiated coverage of the stock with a ‘buy’ rating. Benchmark Co has a buy rating on the stock with a share price target of $26. Three research analysts maintain a ‘hold’ rating on the stock as three maintain a ‘buy’ rating. The average 12-month price target for the stock is $23 a share.
Katz Networks Acquisition
The Katz networks acquisition is seen as the main catalyst behind growing investor confidence on E. W. Scripps Co (NYSE:SSP). The four networks acquired, ounce, Grit, Escape and Laff reach more than 80% of U.S Households and ranked among the fastest growing in the television industry.
The networks are poised to generate $180 million in revenue and about $30 million in segment profit in 2018. The acquisition will be accretive to Scripp’s earnings starting 2018.
E. W. Scripps Co (NYSE:SSP) financed the transaction with $300 million of new floating-rate debt set to mature in 2024.
