Starz Entertainment (NASDAQ:STRZ) Raised to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Starz Entertainment from “sell” to “hold,” while the broader analyst consensus is “Moderate Buy” with an average price target of $33.71.
• Starz reported quarterly revenue of $322.4 million but posted a larger-than-expected loss of $2.02 per share, highlighting ongoing profitability challenges despite improving streaming revenue and adjusted OIBDA.
• Investor sentiment is mixed: major shareholder Allen Family Capital sold about 1.8 million shares over 90 days, while institutional investors including BlackRock initiated significant positions.

Starz Entertainment (NASDAQ:STRZ - Get Free Report) was upgraded by analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other equities analysts have also recently commented on STRZ. Morgan Stanley set a $30.00 target price on Starz Entertainment in a research report on Monday, August 10th. Raymond James Financial upgraded Starz Entertainment from an "outperform" rating to a "strong-buy" rating and set a $36.00 target price on the stock in a research note on Friday. Citizens Jmp started coverage on Starz Entertainment in a report on Monday, September 14th. They issued a "market outperform" rating and a $40.00 price target on the stock. Citigroup initiated coverage on Starz Entertainment in a research report on Monday, September 14th. They set an "outperform" rating for the company. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $30.00 price objective on shares of Starz Entertainment in a report on Tuesday, August 18th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $33.71.

Starz Entertainment Price Performance

STRZ opened at $22.09 on Friday. The company has a fifty day moving average price of $24.72 and a 200-day moving average price of $20.55. The company has a debt-to-equity ratio of 2.05, a quick ratio of 0.25 and a current ratio of 0.25. Starz Entertainment has a one year low of $8.40 and a one year high of $32.58.

Starz Entertainment (NASDAQ:STRZ - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported ($2.02) earnings per share for the quarter, missing the consensus estimate of ($1.63) by ($0.39). Starz Entertainment had a negative return on equity of 30.57% and a negative net margin of 32.52%. The firm had revenue of $322.40 million during the quarter. Sell-side analysts anticipate that Starz Entertainment will post -6.12 EPS for the current year.

Insider Activity

In other news, major shareholder Allen Family Capital, Llc sold 363,786 shares of Starz Entertainment stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $21.06, for a total transaction of $7,661,333.16. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Over the last ninety days, insiders have sold 1,803,786 shares of company stock worth $44,912,698. Insiders own 22.62% of the company's stock.

Institutional Investors Weigh In On Starz Entertainment

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Starz Entertainment during the 2nd quarter valued at about $35,599,000. NewEdge Wealth LLC bought a new stake in Starz Entertainment in the 2nd quarter worth approximately $13,911,000. Ancora Advisors LLC bought a new stake in Starz Entertainment in the 2nd quarter worth approximately $11,826,000. Bank of New York Mellon Corp bought a new stake in Starz Entertainment in the 2nd quarter worth approximately $9,018,000. Finally, Jefferies Financial Group Inc. bought a new stake in Starz Entertainment in the 2nd quarter worth approximately $8,027,000.

Key Stories Impacting Starz Entertainment

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

• Positive Sentiment: Third-quarter revenue reached approximately $322.4 million, ahead of expectations, while total and OTT revenue increased both sequentially and year over year. Adjusted OIBDA more than doubled from the prior year. Starz Entertainment third-quarter results
• Positive Sentiment: Digital streaming revenue reached $227 million, and over-the-top bundling increased customer retention by more than 20%. These figures support management’s shift toward streaming and could improve the company’s long-term revenue quality. Starz: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Raymond James upgraded Starz Entertainment to “strong buy” from “outperform” and assigned a $36 price target. The target implies substantial potential upside from recent trading levels and adds support to the bullish case. Raymond James analyst upgrade
• Neutral Sentiment: Management reaffirmed its 2026 and 2027 targets, including OTT revenue growth, leverage reduction, adjusted OIBDA growth, unlevered free cash flow and a 20% adjusted OIBDA margin in the second half of 2027. Achieving those goals will depend on continued execution in a competitive streaming market.
• Negative Sentiment: Starz reported a quarterly loss of $2.02 per share, while Zacks cited a $2.14 loss, missing consensus estimates of $1.63 and $1.33, respectively. Although the loss narrowed from $2.63 a year earlier, the earnings miss may pressure the stock and highlights continuing profitability challenges. Starz third-quarter loss
• Negative Sentiment: Major shareholder Allen Family Capital disclosed a series of stock sales during August and September, collectively reducing its position by a substantial amount. The selling may weigh on sentiment, even though the transactions occurred before the latest earnings release. SEC ownership filing

Starz Entertainment Company Profile

Starz Entertainment Corp. is a media and entertainment company that operates premium subscription television and streaming services. Its offerings include the STARZ premium network, related linear television channels and the STARZ streaming platform, which provides original series, feature films and licensed entertainment content.

The company's programming has included original dramas, comedies and franchises, as well as a selection of theatrical and television movies. STARZ content is distributed through traditional pay-TV providers, digital platforms and direct-to-consumer subscriptions, with availability varying by market and distribution partner.

Starz was established in 1994 as a premium television service and was acquired by Lionsgate in 2016.

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