Paramount Skydance (NASDAQ:PSKY) Upgraded by Barclays to Strong Sell Rating

Key Points

• Barclays issued a bearish view on Paramount Skydance, citing leverage, restructuring and execution risks tied to the proposed Warner Bros. Discovery merger. Analyst sentiment is broadly negative, with nine Sell ratings, five Holds and four Buys, producing a consensus “Reduce” rating and an $11.33 price target.
• PSKY shares opened at $10.21, with a market capitalization of about $11.46 billion and a 52-week range of $7.62 to $20.86. The company recently reported quarterly earnings of $0.18 per share, beating the $0.15 consensus estimate, on $6.91 billion in revenue.
• The Warner Bros. Discovery transaction remains a major catalyst and risk: FCC approval removed one regulatory hurdle, but lawsuits and potential settlement discussions in California continue to create uncertainty around the closing timeline.

Paramount Skydance (NASDAQ:PSKY - Get Free Report) was upgraded by stock analysts at Barclays to a "strong sell" rating in a note issued to investors on Thursday, Zacks reports.

Other equities research analysts have also recently issued research reports about the stock. Citizens Jmp initiated coverage on shares of Paramount Skydance in a research report on Monday, September 14th. They set a "market outperform" rating and a $14.00 price objective for the company. TD Cowen dropped their target price on shares of Paramount Skydance from $13.00 to $8.00 and set a "hold" rating for the company in a research report on Wednesday, August 5th. Citigroup assumed coverage on shares of Paramount Skydance in a report on Monday. They set an "outperform" rating for the company. Arete Research reiterated a "sell" rating and set a $2.00 price target on shares of Paramount Skydance in a research report on Thursday, July 9th. Finally, Benchmark lowered their price objective on shares of Paramount Skydance from $19.00 to $16.00 and set a "buy" rating for the company in a research report on Wednesday, August 5th. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and nine have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $11.33.

Paramount Skydance Price Performance

Paramount Skydance stock opened at $10.21 on Thursday. The firm has a market cap of $11.46 billion, a PE ratio of 35.21, a price-to-earnings-growth ratio of 1.01 and a beta of 1.50. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.04 and a quick ratio of 0.88. The stock's fifty day moving average price is $9.73 and its two-hundred day moving average price is $10.12. Paramount Skydance has a one year low of $7.62 and a one year high of $20.86.

Paramount Skydance (NASDAQ:PSKY - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.18 earnings per share for the quarter, beating analysts' consensus estimates of $0.15 by $0.03. The firm had revenue of $6.91 billion during the quarter. Paramount Skydance had a positive return on equity of 4.11% and a negative net margin of 2.13%. As a group, research analysts expect that Paramount Skydance will post 0.56 EPS for the current fiscal year.

Institutional Trading of Paramount Skydance

Hedge funds and other institutional investors have recently modified their holdings of the stock. Huntington National Bank lifted its stake in shares of Paramount Skydance by 108.2% in the 4th quarter. Huntington National Bank now owns 2,259 shares of the company's stock valued at $30,000 after acquiring an additional 1,174 shares during the last quarter. Larson Financial Group LLC grew its position in Paramount Skydance by 539.3% during the 4th quarter. Larson Financial Group LLC now owns 2,295 shares of the company's stock worth $31,000 after acquiring an additional 1,936 shares during the last quarter. Compass Financial Management LLC bought a new stake in Paramount Skydance during the 2nd quarter worth $42,000. Global Retirement Partners LLC increased its holdings in Paramount Skydance by 357.5% in the 4th quarter. Global Retirement Partners LLC now owns 4,479 shares of the company's stock worth $60,000 after purchasing an additional 3,500 shares in the last quarter. Finally, CX Institutional raised its position in Paramount Skydance by 38.1% in the second quarter. CX Institutional now owns 4,612 shares of the company's stock valued at $45,000 after purchasing an additional 1,273 shares during the last quarter. Institutional investors own 73.00% of the company's stock.

Key Stories Impacting Paramount Skydance

Here are the key news stories impacting Paramount Skydance this week:

• Positive Sentiment: The Federal Communications Commission approved foreign investment supporting Paramount Skydance’s acquisition of Warner Bros. Discovery, removing one important regulatory hurdle. However, the transaction still faces legal challenges. Reuters article on FCC approval
• Positive Sentiment: California Attorney General Rob Bonta said he remains open to settlement talks if Paramount engages in good faith. A settlement could reduce the legal overhang and improve the likelihood of the merger closing. New York Post article on settlement talks
• Positive Sentiment: Some market commentary argues that PSKY could be undervalued after a prolonged decline, offering potential upside if management executes the merger and improves the combined company’s financial performance. Yahoo Finance article on PSKY valuation
• Neutral Sentiment: Analyst views remain mixed, reflecting uncertainty over PSKY’s valuation and the risks associated with the Warner Bros. Discovery transaction. Globe and Mail analyst sentiment article
• Negative Sentiment: Barclays initiated coverage with an Underweight rating and an $8 price target, citing leverage, restructuring and execution risks tied to the proposed mega-merger. The bearish report appears to have amplified selling pressure. Barron's article on merger risks
• Negative Sentiment: The merger remains delayed by a lawsuit involving California and other state attorneys general, leaving the closing timetable uncertain even after the FCC approval. Quiver Quantitative article on merger delays
• Negative Sentiment: Paramount Skydance has reportedly threatened to leave California amid the merger dispute. Such a move could create additional political friction, disruption and uncertainty around the company’s Hollywood operations. MSN article on Paramount leaving California

About Paramount Skydance

Paramount Skydance Corporation NASDAQ: PSKY is a global media and entertainment company formed through the combination of Paramount Global and Skydance Media. The company develops, produces and distributes feature films, television programming and other video content for audiences in the United States and international markets.

Its portfolio includes Paramount Pictures, CBS, Nickelodeon, MTV, Comedy Central, BET, Showtime and other well-known entertainment brands. Paramount Skydance also operates streaming services including Paramount+ and Pluto TV, as well as businesses involved in television broadcasting, news, sports and content licensing.

The company's history includes Paramount Pictures, one of Hollywood's longstanding film studios, and Skydance Media, a production company founded in 2010 by David Ellison.

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