Entercom Communications (ETM) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Entercom Communications (NYSE:ETM) from a hold rating to a sell rating in a research report released on Monday, January 8th.

According to Zacks, “Entercom Communications is the fourth largest radio broadcasting company in the United States. The company has built a highly consolidated portfolio of radio stations concentrated primarily in top 50 markets with above average growth characteristics. The company’s portfolio of radio stations is geographically diverse and offers a wide variety of programming formats. The company believes that geographic diversity will reduce the effect of economic downturn, while wide range of programming formats lessens the impact of changes in listening preferences. “

Several other analysts also recently commented on ETM. Noble Financial restated a buy rating on shares of Entercom Communications in a research report on Monday, November 27th. ValuEngine downgraded shares of Entercom Communications from a buy rating to a hold rating in a research report on Sunday, December 31st. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and one has issued a buy rating to the company’s stock. The stock currently has a consensus rating of Hold.

Entercom Communications (NYSE:ETM) traded up $0.10 on Monday, reaching $11.45. 3,113,600 shares of the company’s stock traded hands, compared to its average volume of 2,575,690. The company has a quick ratio of 2.21, a current ratio of 2.21 and a debt-to-equity ratio of 1.23. Entercom Communications has a fifty-two week low of $9.45 and a fifty-two week high of $16.55. The company has a market capitalization of $462.27, a P/E ratio of 44.04, a PEG ratio of 5.23 and a beta of 1.10.

Entercom Communications (NYSE:ETM) last released its quarterly earnings results on Thursday, November 2nd. The company reported $0.24 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.22 by $0.02. Entercom Communications had a net margin of 2.69% and a return on equity of 8.67%. The business had revenue of $122.30 million for the quarter, compared to the consensus estimate of $120.76 million. During the same period last year, the firm earned $0.27 earnings per share. The company’s quarterly revenue was up .6% on a year-over-year basis. research analysts expect that Entercom Communications will post 0.93 earnings per share for the current year.

Entercom Communications declared that its board has authorized a stock buyback plan on Thursday, November 2nd that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to purchase up to 22.2% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

In other Entercom Communications news, Chairman Joseph M. Field acquired 180,282 shares of the company’s stock in a transaction on Tuesday, November 21st. The stock was acquired at an average cost of $11.72 per share, with a total value of $2,112,905.04. Following the purchase, the chairman now directly owns 3,529,177 shares of the company’s stock, valued at approximately $41,361,954.44. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Chairman Joseph M. Field acquired 168,162 shares of the company’s stock in a transaction on Monday, November 27th. The stock was acquired at an average cost of $11.81 per share, with a total value of $1,985,993.22. Following the completion of the purchase, the chairman now directly owns 3,762,621 shares in the company, valued at $44,436,554.01. The disclosure for this purchase can be found here. Insiders have purchased 423,444 shares of company stock valued at $4,978,398 over the last ninety days. 32.57% of the stock is currently owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in ETM. Schwab Charles Investment Management Inc. boosted its stake in shares of Entercom Communications by 0.6% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 109,658 shares of the company’s stock worth $1,135,000 after purchasing an additional 627 shares during the period. Rhumbline Advisers boosted its stake in shares of Entercom Communications by 3.1% during the 2nd quarter. Rhumbline Advisers now owns 34,558 shares of the company’s stock worth $358,000 after purchasing an additional 1,047 shares during the period. BNP Paribas Arbitrage SA boosted its stake in shares of Entercom Communications by 9.5% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 33,088 shares of the company’s stock worth $342,000 after purchasing an additional 2,883 shares during the period. JPMorgan Chase & Co. boosted its stake in shares of Entercom Communications by 7.0% during the 2nd quarter. JPMorgan Chase & Co. now owns 4,399,135 shares of the company’s stock worth $45,531,000 after purchasing an additional 287,581 shares during the period. Finally, Wells Fargo & Company MN boosted its stake in shares of Entercom Communications by 25.5% during the 2nd quarter. Wells Fargo & Company MN now owns 50,606 shares of the company’s stock worth $523,000 after purchasing an additional 10,281 shares during the period. 65.75% of the stock is owned by hedge funds and other institutional investors.

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Entercom Communications Company Profile

Entercom Communications Corp. is a radio broadcasting company. The Company sells advertising time to local, regional and national advertisers and national network advertisers, purchasing spot commercials in varying lengths. It focuses on station-related digital platforms, which allow for audience interaction and participation, and integrated local digital marketing solutions and station events.

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