Gannett Co. Inc. [NYSE: GCI] gained 9.47% on the last trading session, reaching $2.66 price per share at the time. The company report on December 22, 2020 that Gannett Announces Early Termination of External Management Agreement.
Gannett Co., Inc. (“Gannett”, “we”, “us”, “our”, or the “Company”) (NYSE: GCI) announced that its external management agreement (the “Management Agreement”) with FIG LLC, an affiliate of Fortress Investment Group LLC (the “Manager”), will terminate as of 11:59 p.m., Eastern Time, on December 31, 2020 – one year prior to the scheduled termination date. Michael E. Reed, an employee of the Manager who serves as the Company’s Chairman and Chief Executive Officer, has accepted an offer of employment from the Company, effective January 1, 2021, and will continue as Chairman and Chief Executive Officer.
“The Board thanks Fortress for the support and guidance it has provided to the Company,” said Mr. Reed. “When New Media acquired Gannett in November 2019, we amended the external management agreement to establish a termination date of December 31, 2021. Since the closing of the acquisition, we have made significant progress integrating the legacy companies and are ready now to move forward independently. We believe the termination of the management agreement will enable the Company to realize meaningful savings in 2021 and beyond.”.
Gannett Co. Inc. represents 132.22 million in outstanding shares, while the company has a total market value of $387.11 million with the latest information. GCI stock price has been found in the range of $2.40 to $2.68.
If compared to the average trading volume of 1.66M shares, GCI reached a trading volume of 1578989 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying 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 $1.57 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 0.23, with the Price to Sales ratio for GCI stock in the period of the last 12 months amounting to 0.12. The Price to Book ratio for the last quarter was 0.83, with the Price to Cash per share for the same quarter was set at 1.30.
Trading performance analysis for GCI stock
Gannett Co. Inc. [GCI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.31. With this latest performance, GCI shares dropped by -6.01% in over the last four-week period, additionally plugging by 73.86% over the last 6 months – not to mention a drop of -57.91% 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 55.34, with the RSI for the last a single of trading hit 53.47, and the three-weeks RSI is set at 56.77 for Gannett Co. Inc. [GCI]. The present Moving Average for the last 50 days of trading for this stock 2.09, while it was recorded at 2.56 for the last single week of trading, and 1.63 for the last 200 days.
Gannett Co. Inc. [GCI]: A deeper dive into fundamental analysis
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.
Gannett Co. Inc. [GCI]: An earnings per share (EPS) analysis
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.
An analysis of insider ownership at Gannett Co. Inc. [GCI]
There are presently around $197 million, or 59.50% 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 0.80% of the total institutional ownership; VANGUARD GROUP INC, holding 8,081,456 shares of the stock with an approximate value of $19.64 million in GCI stocks shares; and DIMENSIONAL FUND ADVISORS LP, currently with $16.29 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 53 institutional holders increased their position in Gannett Co. Inc. [NYSE:GCI] by around 3,137,306 shares. Additionally, 85 investors decreased positions by around 8,301,683 shares, while 48 investors held positions by with 69,669,239 shares. The mentioned changes placed institutional holdings at 81,108,228 shares, according to the latest SEC report filing. GCI stock had 15 new institutional investments in for a total of 287,979 shares, while 30 institutional investors sold positions of 906,297 shares during the same period.