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Stock Update: DIRECTV (NASDAQ:DTV)

Stock Update: DIRECTV (NASDAQ:DTV)
Written by
Charles Donlon
Published on
October 20, 2014
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[Zacks] DIRECTV (NASDAQ:DTV) has moved one step forward regarding its proposed merger with telecom giant AT&T Inc. (T) with the renewal of its existing contract for National Football League's (:NFL) “Sunday Ticket” package. Although the financial terms are undisclosed, industry sources revealed that the new deal will extend the broadcasting right for another 8 years for a total consideration of $1.5 billion per annum.Stock PerformanceTaking a look at the company’s recent performance, DIRECTV reported second quarter earnings for fiscal 2014 on July 31st. The company reported actual earnings per share of $1.59 against the consensus Street estimate of $1.53. This represents year over year growth of 34%. DIRECTV posted revenue of $8.11 billion against estimates of $8.01 billion.DIRECTV is currently valued at $42.75 billion and closed the last trading session at $85.13. The stock has a 50-day moving average of $86.67 and a 200-day moving average of $83.56.

Is this a Buying Opportunity?There are currently twenty seven analysts that we track that cover the stock. Of those twenty seven, nine have a Buy rating, seventeen have a hold rating and one has a Sell rating. On a consensus basis this yields a score of 2.30 and a Hold. The combined price objective of these covering analysts is $90.00, which represents a 2.62% difference to the last closing price.The most recent analyst activity consisted of Canaccord Genuity initiating coverage on the company. Canaccord Genuity has a price target of $95 which represents an upside of 8.32% from the last closing price. On the date of the report, the stock closed at $86.65.Another research firm weighing in recently was Zacks who reiterated their rating on the stock. On August 28th Zacks reiterated their price target on the stock $90, or a 2.62% upside to the current price. On the day of the report, DTV shares closed at $86.09.Company ProfileDIRECTV (NASDAQ:DTV) provides digital television entertainment services in the United States and Latin America. The company acquires, promotes, sells, and distributes digital entertainment programming primarily through satellite to residential and commercial subscribers. It provides direct-to-home digital television services; and multi-channel video programming distribution (MVPD) services. The company also provides collection of programming in the MVPD industry, including approximately 195 high-definition (HD) and television channels, as well as two 3D channels; and offers video-on-demand (VOD) services under the DIRECTV CINEMA name, which provides a selection of approximately 12,000 movie and television programs to its broadband-connected subscribers. In addition, it provides professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view NFL games, as well as offers related broadband, HD, VOD, interactive, and mobile services.

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