What’s Happening With NY Times’ Stock?

The New York Times logo is seen on a newspaper rack at a convenience store in Washington, DC, on … [+] August 6, 2019. (Photo by Alastair Pike / AFP) (Photo credit should read ALASTAIR PIKE/AFP/Getty Images)
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New York Times’ stock (NYSE: NYT), a diversified media company that includes newspapers, internet businesses, television, and radio stations, has declined 4% over the last ten trading days (two weeks) and currently stands at around $43. It should be noted that the broader S&P500 returned a flat growth during the same period. While NYT’s subscriber growth in the first quarter might have slowed down after a news-centric 2020 – which included a pandemic, increased racial issues, and a Presidential election, the media company’s long-term prospects still look good. In Q1, NYT’s overall revenue increased just 7% but operating profit skyrocketed 89%. NYT is now at a point where its digital business is more than offsetting the declines in its print business. This also means higher margins for the company as digital subscriptions pull out higher margins than print. It should be noted that digital subscriptions were the largest source of revenue for the business in Q1, bringing in $180 million, a 38% year-over-year increase. This compares to print subscription revenue, which totaled $149 million and was down 4% versus the prior-year period.

Now, is NYT stock poised to decline further? We believe the company remains fundamentally undervalued and there could be room for gains in the stock going forward. Specifically, there is a 54% chance of a rise for NYT stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on NYT Stock Chances of Rise for more details.

Chance of Rise
Trefis

Calculation of ‘Event Probability’ and ‘Chance of Rise’ using last 10 year data

[1] -0.3% or higher return during 5-day period in 1196 times out of 2517; Stock rose in the next 5 days in 647 of these 1196 instances

[2] -3.7% or higher return during 10-day period in 474 times out of 2517; Stock rose in the next 10 days in 259 of these 474 instances

[3] 6.5% or higher return during 21-day period in 727 times out of 2516; Stock rose in the next 21 days in 393 of these 727 instances

It is helpful to see how its peers stack up. Check out NYT Stock Comparison With Peers to see how New York Times compares against peers on metrics that matter.

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