The Case for and Against Time Warner Inc. (TWX)

Time Warner Inc. (TWX) is an interesting player in the Services space, with a focus on Entertainment – Diversified. The stock has been active on the tape, currently trading at $92.54, up from yesterday’s close by 0.17%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Time Warner Inc. (TWX) currently trades with a market capitalization of $72.07 Billion. That value represents a market adjusting for revenues that have been growing by 3.37 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $4.23 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.54 on a per share basis this quarter. Perhaps, that suggests something about why 2.67% of the outstanding share supply is held by institutional investors.



Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Time Warner Inc. recorded a 52-week high of $103.90. It is now trading 11.36% off that level. The stock is trading $95.03 its 50-day moving average by 2.49%. The stock carved out a 52-week low down at $85.88.

In recent action, Time Warner Inc. (TWX) has made a move of -3.94% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 12.84, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.41% with $777.85 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of TWX.

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