Paramount Skydance Corporation (NASDAQ:PSKY) Receives Consensus Rating of "Reduce" from Brokerages

Key Points

• Analysts hold a consensus “Reduce” rating on Paramount Skydance, with nine sell, five hold and four buy recommendations. The average 12-month price target is $11.33, although recent targets range from Barclays’ $8 to Citizens JMP’s $14.
• The proposed Warner Bros. Discovery acquisition remains the central risk: FCC approval removed one regulatory hurdle, but lawsuits, potential DOJ financial requirements and concerns over leverage, restructuring and execution continue to weigh on the deal.
• PSKY shares opened at $10.62 and remain well below their 52-week high of $20.86. The company recently exceeded quarterly EPS estimates, reported $6.91 billion in revenue and declared a quarterly dividend of $0.05 per share.

Shares of Paramount Skydance Corporation (NASDAQ:PSKY - Get Free Report) have been given a consensus recommendation of "Reduce" by the eighteen research firms that are covering the stock, MarketBeat.com reports. Nine investment analysts have rated the stock with a sell rating, five have given a hold rating and four have assigned a buy rating to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $11.3333.

PSKY has been the topic of a number of recent research reports. Benchmark decreased their price target on shares of Paramount Skydance from $19.00 to $16.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Barclays began coverage on shares of Paramount Skydance in a report on Thursday. They issued an "underweight" rating and a $8.00 target price on the stock. Citizens Jmp assumed coverage on shares of Paramount Skydance in a research report on Monday. They set a "market outperform" rating and a $14.00 target price on the stock. Weiss Ratings raised shares of Paramount Skydance from a "sell (d-)" rating to a "sell (d)" rating in a report on Thursday, August 6th. Finally, Citigroup started coverage on Paramount Skydance in a research report on Monday. They issued an "outperform" rating for the company.

Hedge Funds Weigh In On Paramount Skydance

Several large investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC bought a new stake in Paramount Skydance in the second quarter worth $75,000. IFP Advisors Inc increased its position in Paramount Skydance by 11.6% during the second quarter. IFP Advisors Inc now owns 50,934 shares of the company's stock valued at $502,000 after acquiring an additional 5,294 shares during the last quarter. Arizona State Retirement System increased its position in Paramount Skydance by 1.2% during the second quarter. Arizona State Retirement System now owns 89,455 shares of the company's stock valued at $882,000 after acquiring an additional 1,077 shares during the last quarter. Nykredit A S purchased a new stake in shares of Paramount Skydance in the second quarter valued at $150,000. Finally, Brown Financial Advisors purchased a new stake in shares of Paramount Skydance in the second quarter valued at $175,000. Institutional investors own 73.00% of the company's stock.

More Paramount Skydance News

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

• Positive Sentiment: The FCC approved foreign investment supporting Paramount Skydance’s Warner Bros. Discovery acquisition, removing one regulatory obstacle. However, the deal still faces litigation from a coalition of state attorneys general. US FCC approves foreign investment in Paramount Warner merger deal
• Positive Sentiment: Citizens JMP initiated coverage with a Buy rating, offering a bullish counterpoint to more cautious analyst commentary. Paramount Skydance initiated with a Buy at Citizens JMP
• Neutral Sentiment: California Attorney General Rob Bonta said he remains open to good-faith settlement talks over the merger. Paramount and Bonta are scheduled for settlement discussions in October, which could help resolve the legal overhang but also confirms that the lawsuit remains an unresolved deal risk. California AG discusses Paramount settlement talks
• Negative Sentiment: Barclays initiated coverage with an Underweight rating and an $8 price target, citing leverage, restructuring and execution risks tied to the Warner Bros. Discovery combination. The warning contributed to concern that the merger could strain Paramount’s balance sheet. Paramount Skydance falls as bearish coverage adds to merger-delay concerns
• Negative Sentiment: Additional coverage characterized the proposed mega-merger as vulnerable to significant execution risks, while reports that Paramount may leave California add uncertainty over costs, operations and its relationship with state officials. Paramount is today's worst S&P 500 stock on a warning against mega-merger
• Negative Sentiment: Reports that the Justice Department may seek a $1.9 billion bond in connection with the transaction further highlight the potential financial and regulatory costs of completing the deal. Paramount Warner Bros. Discovery deal faces DOJ bond push

Paramount Skydance Stock Down 4.7%

PSKY opened at $10.62 on Friday. The company has a market capitalization of $11.92 billion, a PE ratio of 36.62, a price-to-earnings-growth ratio of 1.06 and a beta of 1.50. The firm has a 50-day simple moving average of $9.71 and a two-hundred day simple moving average of $10.12. The company has a quick ratio of 0.88, a current ratio of 1.04 and a debt-to-equity ratio of 1.13. Paramount Skydance has a 52 week low of $7.62 and a 52 week high of $20.86.

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

Paramount Skydance Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be issued a $0.05 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.9%. Paramount Skydance's payout ratio is 68.97%.

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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