Time Inc’s shares close flat on Friday, company reported to be in negotiations over asset sale

In a regulatory filing on Friday, Time Inc (TIME) said it was in talks over the sale of some of its assets, including Time Customer Service as well as a majority stake in the Essence magazine. At the same time, the publisher warned about softness in its third-quarter print and advertising revenue compared to the forecast it had issued during the second-quarter earnings call.

Time Incs shares closed without change on Friday. The stock closed at $12.55, after touching an intraday low at $12.40, or matching the low from September 21st and also being the lowest price level since August 23rd ($12.10). In the week ended on September 24th the shares of the magazine publisher lost 3.83% of their market value compared to a week ago, which marked the worst performance since the week ended on August 20th. The stock has retreated 4.56% so far during the current month, following a 6.41% slump in August. The latter has been a second consecutive monthly loss and also the largest one since May. For the entire past year, Time Incs shares gained 13.91%. The stock has retreated 29.69% so far in 2017.

According to the company, the assets identified for sale are estimated at approximately $488 million. That figure represents 17% of the publishers total revenue during the twelve months ended on June 30th. A deal could be announced as early as the last quarter of 2017.

Meanwhile, Times magazine circulation revenue was reported to have shrunk 12% during the quarter ended on June 30th, while the companys advertising revenue – by approximately 12%.

On the other hand, the publisher said its cost saving and other efforts might offset soft advertising revenue in Q3.

According to CNN Money, the 5 analysts, offering 12-month forecasts regarding Time Inc’s stock price, have a median target of $15.00, with a high estimate of $18.00 and a low estimate of $14.00. The median estimate is a 19.52% surge compared to the closing price of $12.55 on September 22nd.

The same media also reported that 4 out of 5 surveyed investment analysts had rated Time Inc’s stock as “Hold”, while the remaining 1 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Time Incs stock are presented as follows:

R1 – $12.57
R2 – $12.60
R3 (Range Resistance – Sell) – $12.62
R4 (Long Breakout) – $12.69
R5 (Breakout Target 1) – $12.77
R6 (Breakout Target 2) – $12.80

S1 – $12.53
S2 – $12.50
S3 (Range Support – Buy) – $12.48
S4 (Short Breakout) – $12.41
S5 (Breakout Target 1) – $12.33
S6 (Breakout Target 2) – $12.30

By using the traditional method of calculation, the weekly levels of importance for Time Inc (TIME) are presented as follows:

Central Pivot Point – $12.72
R1 – $13.03
R2 – $13.52
R3 – $13.83
R4 – $14.15

S1 – $12.23
S2 – $11.92
S3 – $11.43
S4 – $10.95