How Will Shares of Time Warner Inc (NYSE:TWX) React to Sunday’s Huge Cable Outage?


Time Warner Inc (NYSE:TWX) is one of those names that people all over the United States will recognize. After all, they are the company responsible for providing TV and Internet service to much of the country’s population. However, when an outage strikes, people get mad, and when that outage just happens to be over a holiday weekend, people get even angrier.

This is what happened on Sunday afternoon when over 15,000 people reported problems with their TV and internet service to the provider. The outages spanned from the Carolinas all the way to the West Coast, just as people were sitting arond their TVs with family, ready to watch the local news or favorite TV shows.

It should be interesting to see how this outage affects shares of Time Warner Inc (NYSE:TWX), as the market opens today. Will investors care, or will it be water under the bridge?

The stock closed at $64.39 during the last trading session. It is down 24.42% since May 22, 2015 and is downtrending. It has underperformed the S&P500 by 22.16%.

From a total of 18 analysts covering Time Warner Inc. (NYSE:TWX) stock, 15 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 83% of the ratings are positive. The highest target price is $200 while the lowest target price is $77. The mean of all analyst targets is $93.20 which is 44.74% above today’s ($64.39) stock price. Time Warner Inc. was the topic of 36 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on November 27 with a “Buy” rating. Cowen & Co maintained shares with a”Market Perform” rating and a $85 target share price in their report from an August 24. Barrington Research maintained TWX stock in a recent report from November 6 with a “Outperform” rating. Vetr downgraded the rating on August 11. Vetr has a “Strong-Buy” rating and a $89.86 price target on shares. Finally, Credit Agricole downgraded the stock to a “Outperform” rating in a report they issued on a November 5.

The institutional sentiment increased to 0.96 in Q2 2015. It’s up 0.03, from 0.93 in 2015Q2. The ratio is positive, as 101 funds sold all their Time Warner Inc shares they owned while 323 reduced their positions. 88 funds bought stakes while 321 increased their total positions. Institutions now own 613.31 million shares which is 7.63% less than the previous share count of 664.00 million in 2015Q2.

Michael & Susan Dell Foundation holds 15.89% of its total portfolio in Time Warner Inc, equating to 316,947 shares. Sls Management Llc owns 198,710 shares representing 10.44% of their total US portfolio. Moreover, Goldentree Asset Management Lp has 7.87% of their total portfolio invested in the company, equating to 699,727 shares. The United Kingdom-based Independent Franchise Partners Llp has a total of 6.83% of their portfolio invested in the stock. Limestone Value Partners Llc, a Texas-based fund reported 81,000 shares owned.

Time Warner Inc. is a media and entertainment company. The company has a market cap of $51.48 billion. The Firm operates in three divisions: Turner, which consists of cable networks and digital media properties; Home Box Office, which consists of domestic premium pay television services, and international premium pay and basic tier television services, and Warner Bros., which consists of television, feature film, home video and videogame production and distribution of digital and physical home entertainment products. It has 14.7 P/E ratio. Turner operates over 165 channels globally.