Gannett Co. Inc. [NYSE: GCI] closed the trading session at $2.31 on 11/17/20. The day’s price range saw the stock hit a low of $1.81, while the highest price level was $2.42. The company report on November 17, 2020 that Gannett Announces Refinancing of Approximately $500 million of Debt.
Gannett Co., Inc. (“Gannett”, “we”, “us”, “our”, or the “Company”) (NYSE: GCI) announced that it has refinanced approximately $500 million of its 11.5% term loan, maturing in 2024, with 6.0% convertible notes due in 2027. The refinancing reduces the outstanding term loan to $1.118 billion.
“We are pleased to announce the refinancing, which we believe has three key benefits,” said Michael Reed, Gannett Chairman and Chief Executive Officer. “First, it generates significant savings, reducing our annual interest expense by approximately $28 million per year. These savings will be used to accelerate repayment of our term loan. Second, we believe that this refinancing paves the way for a refinancing of the remaining term loan by reducing the outstanding balance. And third, it extends the maturity of approximately $500 million of debt by three years. Since putting the term loan in place in November 2019, we have repaid over $175 million to date, and we expect to repay an additional $100 million in the coming months. Pro forma for these repayments, the outstanding term loan will be approximately $1 billion, which we believe we can refinance on attractive terms by the end of the first half of 2021. As we improve the Company’s capital structure, we are also seeing continued improvement in our revenue trends, which we expect will drive strong fourth quarter results.”.
The stocks have a year to date performance of -63.79 percent and weekly performance of 36.69 percent. The stock has been moved at 87.80 percent over the last six months. The stock has performed 58.22 percent around the most recent 30 days and changed 37.50 percent over the most recent 3-months.
If compared to the average trading volume of 1.46M shares, GCI reached to a volume of 10276907 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Gannett Co. Inc. [GCI]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GCI shares is $1.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GCI stock is a recommendation set at 4.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Citigroup have made an estimate for Gannett Co. Inc. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on April 06, 2020. The new note on the price target was released on July 06, 2018, representing the official price target for Gannett Co. Inc. stock. On November 02, 2016, analysts decreased their price target for GCI shares from 19 to 16.
The Average True Range (ATR) for Gannett Co. Inc. is set at 0.17, with the Price to Sales ratio for GCI stock in the period of the last 12 months amounting to 0.10. The Price to Book ratio for the last quarter was 0.72, with the Price to Cash per share for the same quarter was set at 1.40.
GCI stock trade performance evaluation
Gannett Co. Inc. [GCI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 36.69. With this latest performance, GCI shares gained by 58.22% in over the last four-week period, additionally plugging by 87.80% over the last 6 months – not to mention a drop of -63.45% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GCI stock in for the last two-week period is set at 78.02, with the RSI for the last a single of trading hit 84.47, and the three-weeks RSI is set at 72.01 for Gannett Co. Inc. [GCI]. The present Moving Average for the last 50 days of trading for this stock 1.48, while it was recorded at 1.83 for the last single week of trading, and 1.95 for the last 200 days.
Gannett Co. Inc. [GCI]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Gannett Co. Inc. [GCI] shares currently have an operating margin of +3.72 and a Gross Margin at +36.21. Gannett Co. Inc.’s Net Margin is presently recorded at -6.42.
Return on Total Capital for GCI is now 3.37, given the latest momentum, and Return on Invested Capital for the company is -5.90. Return on Equity for this stock declined to -14.11, with Return on Assets sitting at -4.39. When it comes to the capital structure of this company, Gannett Co. Inc. [GCI] has a Total Debt to Total Equity ratio set at 201.82. Additionally, GCI Total Debt to Total Capital is recorded at 66.87, with Total Debt to Total Assets ending up at 49.27. Long-Term Debt to Equity for the company is recorded at 197.41, with the Long-Term Debt to Total Capital now at 65.41.
Reflecting on the efficiency of the workforce at the company, Gannett Co. Inc. [GCI] managed to generate an average of -$5,638 per employee. Receivables Turnover for the company is 6.10 with a Total Asset Turnover recorded at a value of 0.68.Gannett Co. Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.00.
Earnings per share (EPS) analysis for Gannett Co. Inc. [GCI] stock
With the latest financial reports released by the company, Gannett Co. Inc. posted 0.34/share EPS, while the average EPS was predicted by analysts to be reported at -0.27/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 225.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GCI.
Gannett Co. Inc. [GCI]: Insider Ownership positions
There are presently around $187 million, or 63.40% of GCI stock, in the hands of institutional investors. The top three institutional holders of GCI stocks are: BLACKROCK INC. with ownership of 18,557,842, which is approximately 1.093% of the company’s market cap and around 1.40% of the total institutional ownership; VANGUARD GROUP INC, holding 8,081,456 shares of the stock with an approximate value of $18.67 million in GCI stocks shares; and DIMENSIONAL FUND ADVISORS LP, currently with $15.48 million in GCI stock with ownership of nearly -7.831% of the company’s market capitalization.
Positions in Gannett Co. Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 52 institutional holders increased their position in Gannett Co. Inc. [NYSE:GCI] by around 3,085,154 shares. Additionally, 86 investors decreased positions by around 8,320,928 shares, while 48 investors held positions by with 69,649,994 shares. The mentioned changes placed institutional holdings at 81,056,076 shares, according to the latest SEC report filing. GCI stock had 14 new institutional investments in for a total of 235,827 shares, while 31 institutional investors sold positions of 925,542 shares during the same period.