Sphere Entertainment (NYSE:SPHR) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Sphere Entertainment from Hold to Sell. Despite the downgrade, analyst consensus remains Moderate Buy, with an average price target of $156.87.
• Sphere reported quarterly revenue of $274.26 million, above estimates of $269.71 million and up 4.5% year over year, but its reported loss of $4.84 per share was substantially worse than the $1.66 loss analysts expected.
• “The Wizard of Oz” attraction at Sphere surpassed $500 million in ticket sales, with more than four million tickets sold since its August debut.

Sphere Entertainment (NYSE:SPHR - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Monday, Wall Street Zen reports.

Other equities analysts have also issued reports about the stock. New Street Research set a $188.00 price objective on shares of Sphere Entertainment in a research report on Tuesday, July 14th. Susquehanna restated a "positive" rating and set a $156.00 price objective on shares of Sphere Entertainment in a research report on Friday. Seaport Research Partners set a $160.00 target price on shares of Sphere Entertainment in a research note on Wednesday, October 7th. Piper Sandler restated an "overweight" rating and issued a $145.00 target price (down from $185.00) on shares of Sphere Entertainment in a research note on Friday, October 23rd. Finally, Weiss Ratings downgraded shares of Sphere Entertainment from a "hold (c)" rating to a "sell (d-)" rating in a report on Friday, October 2nd. Eleven analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $156.87.

Sphere Entertainment Stock Up 0.0%

Shares of NYSE SPHR opened at $120.08 on Monday. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.17 and a quick ratio of 1.17. The business has a 50-day moving average of $124.43 and a two-hundred day moving average of $130.43. The company has a market capitalization of $4.31 billion, a price-to-earnings ratio of -25.44 and a beta of 1.72. Sphere Entertainment has a 1 year low of $72.08 and a 1 year high of $181.63.

Sphere Entertainment (NYSE:SPHR - Get Free Report) last issued its quarterly earnings data on Thursday, November 5th. The company reported ($4.84) earnings per share for the quarter, missing analysts' consensus estimates of ($1.66) by ($3.18). The firm had revenue of $274.26 million during the quarter, compared to analysts' expectations of $269.71 million. Sphere Entertainment had a negative net margin of 11.60% and a negative return on equity of 0.78%. Sphere Entertainment's quarterly revenue was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($2.80) EPS. On average, analysts forecast that Sphere Entertainment will post -2.70 earnings per share for the current fiscal year.

Institutional Trading of Sphere Entertainment

Institutional investors have recently made changes to their positions in the stock. Signaturefd LLC boosted its holdings in Sphere Entertainment by 204.9% in the third quarter. Signaturefd LLC now owns 186 shares of the company's stock valued at $25,000 after acquiring an additional 125 shares during the last quarter. Polaris Financial Partners acquired a new stake in Sphere Entertainment during the third quarter worth about $43,000. Nykredit A S acquired a new stake in Sphere Entertainment during the second quarter worth about $79,000. Parallel Advisors LLC raised its holdings in Sphere Entertainment by 275.0% in the first quarter. Parallel Advisors LLC now owns 465 shares of the company's stock valued at $55,000 after buying an additional 341 shares during the period. Finally, Vision Retirement LLC raised its stake in shares of Sphere Entertainment by 38.0% in the 1st quarter. Vision Retirement LLC now owns 483 shares of the company's stock valued at $57,000 after acquiring an additional 133 shares during the period. 92.03% of the stock is owned by hedge funds and other institutional investors.

Sphere Entertainment News Roundup

Here are the key news stories impacting Sphere Entertainment this week:

• Positive Sentiment: Strong ticket sales at Sphere: “The Wizard of Oz” exceeded $500 million in ticket sales, with more than four million tickets sold since its August debut. The company also introduced expanded 4D effects, supporting the potential for continued audience demand. Sphere Entertainment Q3 results
• Positive Sentiment: Revenue topped expectations: Q3 revenue was $274.26 million, above analyst estimates of about $269.7 million and up 4.5% year over year. Zacks also reported a per-share loss of $0.98, narrower than its consensus estimate of a $1.79 loss. Zacks Q3 earnings report
• Positive Sentiment: Guggenheim remains bullish: The firm cut its price target from $180 to $175 but maintained a Buy rating, implying substantial upside from the then-current price. The target reduction tempers, but does not reverse, the favorable stance. Guggenheim price-target update
• Negative Sentiment: Reported loss was a concern: Other earnings coverage cited a loss of $4.84 per share, far worse than the $1.66 consensus estimate. This contrasts with the narrower loss cited by Zacks, suggesting results varied across reported earnings measures and may have weighed on sentiment. Coverage of Sphere’s wider Q3 loss

About Sphere Entertainment

Sphere Entertainment Co is a live entertainment and media company whose businesses include Sphere and MSG Networks. Sphere is a large-scale venue in Las Vegas designed for concerts, films and other events, featuring immersive visuals and sound. The company also operates Sphere Studios, which develops content and technology for the venue and other applications.

MSG Networks operates regional sports and entertainment networks serving viewers in the New York metropolitan area. Its programming includes live coverage of professional sports, as well as news and other original content, with related streaming services also available to consumers.

Sphere Entertainment was formed in 2023 through the separation of businesses from Madison Square Garden Entertainment Corp.

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