AOL Stock Declining Following Lower Rating

NEW YORK (TheStreet) -- Shares of AOL   (AOL) are declining, lower by 0.04% to $50.50 in mid-morning trading Wednesday, despite being downgraded by analysts at Monness Crespi & Hardt following Verizon Communications'  (VZ) acquisition offer.

The firm slashed its rating on AOL to "neutral" from "buy" earlier today.

Similarly, analysts at Cantor Fitzgerald downgraded AOL by two notches to "sell" from "buy" yesterday with a price target of $47.

Both ratings cuts followed Verizon's announced plans to buy the Internet services icon for $50 per share in a $4.4 billion deal.

Cantor said the takeover valuation is "relatively fair" and that a higher bidder is unlikely to emerge.

Also, AOL has held advanced talks to spin off its Huffington Post unit which is valued at more than $1 billion, according to Re/code.

New York City-based AOL is a global media and technology company with a suite of digital brands, products and services.

The company is focused on attracting and engaging consumers by creating and offering digital content, products and services and providing advertising services on both its owned and operated properties and third-party websites.

Insight from TheStreet's Research Team:

Jim Cramer commented on AOL in a recent post on RealMoney.com. Here is a snippet of what Cramer had to say about the stock:

You want to know why this business of picking winning stocks can be so hard? One of the principal reasons may be because people are so darned cynical about anything, even when the positives are downright self-evident.

Take AOL (AOL). Last week it reported one of those quarters that showed you that all of the hard work of CEO Tim Armstrong was paying off. The company has reinvented itself, going from a profitless dial-up online concern to a profitable company with terrific properties, including the Huffington Post, as well as one of the best search systems on the web and a fabulous advertising technology that works fabulously with video.

- Jim Cramer, 'Verizon Recognizes AOL Cracked the Code' originally published 5/12/2015 on RealMoney.com.

Want more information like this from Jim Cramer BEFORE your stock moves? Learn more about RealMoney.com now.

Separately, TheStreet Ratings team rates AOL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate AOL INC (AOL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins."

You can view the full analysis from the report here: AOL Ratings Report

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