NEW YORK (TheStreet) -- Gray Television  (GTN) - Get Report fell 10.18% to $9.44 at 11:32 a.m. on Monday after a pair of downgrades from Wells Fargo.

Wells Fargo downgraded Gray Television to "market perform" from "outperform" and decreased its target price range to $10 to $12 from $14 to $16. The firm noted a more negative regulatory environment tied to future and pending mergers and acquisitions, which should limit share upside.

Furthermore, Wells Fargo downgraded the entire Broadcast TV sector to "market perform" from "outperform" and made the same adjustments to LIN Media  (LIN) - Get ReportNexstar  (NXST) - Get Report and Sinclair Broadcast (SBGI) - Get Report.

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TheStreet Ratings team rates GRAY TELEVISION INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate GRAY TELEVISION INC (GTN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we find that revenues have generally been declining."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 346.6% when compared to the same quarter one year prior, rising from -$2.11 million to $5.20 million.
  • Net operating cash flow has significantly increased by 995.34% to $8.65 million when compared to the same quarter last year. In addition, GRAY TELEVISION INC has also vastly surpassed the industry average cash flow growth rate of -11.41%.
  • GRAY TELEVISION INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GRAY TELEVISION INC reported lower earnings of $0.32 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($1.12 versus $0.32).
  • GTN, with its decline in revenue, underperformed when compared the industry average of 4.2%. Since the same quarter one year prior, revenues fell by 24.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Powered by its strong earnings growth of 280.00% and other important driving factors, this stock has surged by 151.07% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • You can view the full analysis from the report here: GTN Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.