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

Key Points

• Wall Street Zen downgraded Genius Sports from “sell” to “strong sell,” although broader analyst sentiment remains “Moderate Buy” with an average price target of $11.25.
• Genius Sports reported quarterly revenue of $195.5 million, up 64.7% year over year and above estimates, but its adjusted loss of $0.28 per share significantly missed the $0.07 consensus loss.
• Company insiders sold approximately 850,000 shares worth $5.6 million over the past 90 days, while the stock opened at $6.16 and remains well below its 12-month high of $13.52.

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

Other analysts have also recently issued reports about the company. The Goldman Sachs Group reissued a "buy" rating and set a $10.50 price target on shares of Genius Sports in a report on Friday, August 7th. Oppenheimer upped their price objective on Genius Sports from $10.00 to $12.00 and gave the company an "outperform" rating in a report on Friday, August 7th. Needham & Company LLC increased their price objective on Genius Sports from $10.00 to $12.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Zacks Research downgraded Genius Sports from a "hold" rating to a "strong sell" rating in a report on Monday, August 10th. Finally, Weiss Ratings raised shares of Genius Sports from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $11.25.

Genius Sports Stock Performance

GENI opened at $6.16 on Tuesday. Genius Sports has a 12-month low of $3.83 and a 12-month high of $13.52. The stock has a market cap of $1.52 billion, a price-to-earnings ratio of -9.06 and a beta of 1.88. The business has a 50 day moving average of $7.19 and a 200-day moving average of $5.98. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 1.10.

Genius Sports (NYSE:GENI - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The company reported ($0.28) EPS for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.21). The company had revenue of $195.50 million for the quarter, compared to the consensus estimate of $184.43 million. Genius Sports had a negative return on equity of 23.83% and a negative net margin of 22.99%.The company's revenue for the quarter was up 64.7% compared to the same quarter last year. During the same period last year, the firm earned ($0.21) earnings per share. On average, equities research analysts expect that Genius Sports will post -0.35 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Thomas Russell sold 50,000 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $6.51, for a total transaction of $325,500.00. Following the completion of the sale, the insider owned 471,467 shares of the company's stock, valued at approximately $3,069,250.17. This represents a 9.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Mark Locke sold 477,449 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.58, for a total transaction of $3,141,614.42. Following the sale, the chief executive officer owned 19,697,767 shares in the company, valued at $129,611,306.86. This represents a 2.37% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 850,000 shares of company stock worth $5,582,049 in the last 90 days. 16.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of GENI. Senvest Management LLC grew its position in Genius Sports by 45.1% during the 1st quarter. Senvest Management LLC now owns 13,653,724 shares of the company's stock worth $60,486,000 after acquiring an additional 4,243,157 shares during the last quarter. Voss Capital LP raised its position in Genius Sports by 35.4% in the fourth quarter. Voss Capital LP now owns 11,100,000 shares of the company's stock valued at $122,322,000 after purchasing an additional 2,900,000 shares during the last quarter. Stephens Investment Management Group LLC raised its position in Genius Sports by 35.1% in the first quarter. Stephens Investment Management Group LLC now owns 7,598,359 shares of the company's stock valued at $33,661,000 after purchasing an additional 1,974,043 shares during the last quarter. Westfield Capital Management Co. LP boosted its stake in shares of Genius Sports by 1.7% during the fourth quarter. Westfield Capital Management Co. LP now owns 5,951,203 shares of the company's stock valued at $65,582,000 after purchasing an additional 101,120 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. boosted its stake in shares of Genius Sports by 65.7% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,909,945 shares of the company's stock valued at $17,321,000 after purchasing an additional 1,549,816 shares in the last quarter. 81.91% of the stock is currently owned by institutional investors.

Genius Sports Company Profile

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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