Genius Sports (NYSE:GENI) Cut to Strong Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Genius Sports to “strong sell” from “sell,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $11.44.
• Genius Sports missed quarterly earnings expectations, reporting a loss of $0.28 per share versus the anticipated $0.07 loss, although revenue increased 64.7% year over year to $195.5 million.
• The stock opened at $6.84, below its 50-day moving average of $7.23 but above its 200-day average of $5.95; institutional investors and hedge funds own approximately 81.91% of shares.

Genius Sports (NYSE:GENI - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research report issued on Sunday, Wall Street Zen reports.

Other research analysts also recently issued reports about the company. Wells Fargo & Company reiterated an "equal weight" rating and issued a $8.00 price target on shares of Genius Sports in a report on Friday, August 7th. Stifel Nicolaus raised their price objective on Genius Sports from $5.00 to $7.00 and gave the company a "hold" rating in a research report on Wednesday, July 22nd. Oppenheimer lifted their target price on Genius Sports from $10.00 to $12.00 and gave the company an "outperform" rating in a research note on Friday, August 7th. Guggenheim boosted their target price on shares of Genius Sports from $11.00 to $12.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Finally, Zacks Research cut shares of Genius Sports from a "hold" rating to a "strong sell" rating in a report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Genius Sports presently has an average rating of "Moderate Buy" and a consensus target price of $11.44.

Genius Sports Trading Up 1.7%

Shares of Genius Sports stock opened at $6.84 on Friday. The company has a debt-to-equity ratio of 1.10, a current ratio of 0.97 and a quick ratio of 0.97. The stock has a market capitalization of $1.68 billion, a PE ratio of -10.05 and a beta of 1.88. The company's fifty day simple moving average is $7.23 and its 200-day simple moving average is $5.95. Genius Sports has a 1-year low of $3.83 and a 1-year high of $13.69.

Genius Sports (NYSE:GENI - Get Free Report) last announced its quarterly earnings results on Friday, August 7th. The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.21). The business had revenue of $195.50 million during the quarter, compared to analysts' expectations of $184.43 million. Genius Sports had a negative return on equity of 23.83% and a negative net margin of 22.99%.Genius Sports's revenue for the quarter was up 64.7% on a year-over-year basis. During the same period in the previous year, the company posted ($0.21) EPS. As a group, equities analysts anticipate that Genius Sports will post -0.35 earnings per share for the current year.

Hedge Funds Weigh In On Genius Sports

Several hedge funds have recently made changes to their positions in the company. Royal Bank of Canada grew its stake in Genius Sports by 17.6% during the 1st quarter. Royal Bank of Canada now owns 44,339 shares of the company's stock valued at $444,000 after purchasing an additional 6,623 shares during the last quarter. Cetera Investment Advisers raised its stake in shares of Genius Sports by 10.0% in the second quarter. Cetera Investment Advisers now owns 15,288 shares of the company's stock worth $159,000 after purchasing an additional 1,388 shares during the last quarter. Prudential Financial Inc. acquired a new stake in shares of Genius Sports during the second quarter worth about $266,000. Invesco Ltd. lifted its holdings in shares of Genius Sports by 3,584.2% during the second quarter. Invesco Ltd. now owns 3,291,635 shares of the company's stock worth $34,233,000 after purchasing an additional 3,202,290 shares during the period. Finally, Frontier Capital Management Co. LLC purchased a new stake in Genius Sports in the second quarter valued at approximately $14,220,000. 81.91% of the stock is owned by institutional investors and hedge funds.

About Genius Sports

Genius Sports Limited NYSE: GENI is a sports technology and data company that provides official sports data, technology, and digital services to sports leagues, federations, teams, broadcasters, sportsbooks, and brands. Its platforms help clients collect, manage, distribute, and commercialize live sports information across digital channels.

The company's offerings include live scores and statistics, data feeds for sports betting, fan-engagement tools, video streaming and content services, and advertising and sponsorship technology.

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