Starz Entertainment Corp. (NASDAQ:STRZ) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Starz Entertainment has a “Moderate Buy” consensus rating from nine analysts, with an average 12-month price target of $32.71 versus the stock’s reported $20.91 opening price.
• The company reported a significant quarterly loss of $11.27 per share, far below the $0.59-per-share consensus estimate, while generating $307.9 million in revenue.
• CEO Jeffrey Hirsch and another insider recently purchased Starz shares, and insiders collectively own 22.62% of the company; several institutional investors also established new positions.

Starz Entertainment Corp. (NASDAQ:STRZ - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the nine ratings firms that are presently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, three have given a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $32.71.

A number of equities research analysts have recently weighed in on the company. Citizens Jmp assumed coverage on Starz Entertainment in a research report on Monday, September 14th. They issued a "market outperform" rating and a $40.00 price objective on the stock. Wall Street Zen cut Starz Entertainment from a "hold" rating to a "sell" rating in a research note on Saturday, July 25th. Weiss Ratings restated a "sell (d-)" rating on shares of Starz Entertainment in a report on Wednesday, July 29th. B. Riley Financial assumed coverage on Starz Entertainment in a research note on Tuesday, June 30th. They issued a "buy" rating and a $45.00 price target for the company. Finally, Citigroup began coverage on shares of Starz Entertainment in a research report on Monday, September 14th. They set an "outperform" rating on the stock.

Starz Entertainment Price Performance

STRZ stock opened at $20.91 on Tuesday. The stock has a market capitalization of $358.06 million, a price-to-earnings ratio of -0.82 and a beta of 2.55. The firm's 50-day moving average price is $25.05 and its two-hundred day moving average price is $20.33. The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 2.05. Starz Entertainment has a 12-month low of $8.40 and a 12-month high of $32.58.

Starz Entertainment (NASDAQ:STRZ - Get Free Report) last posted its earnings results on Friday, August 7th. The company reported ($11.27) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.59) by ($10.68). The business had revenue of $307.90 million during the quarter. Starz Entertainment had a negative return on equity of 25.64% and a negative net margin of 33.98%. As a group, equities analysts predict that Starz Entertainment will post -6.12 earnings per share for the current year.

Insider Transactions at Starz Entertainment

In related news, CEO Jeffrey Hirsch bought 10,000 shares of the business's stock in a transaction dated Monday, August 10th. The shares were purchased at an average price of $24.80 per share, with a total value of $248,000.00. Following the purchase, the chief executive officer owned 65,000 shares of the company's stock, valued at approximately $1,612,000. This trade represents a 18.18% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider James Kapenstein purchased 1,000 shares of Starz Entertainment stock in a transaction that occurred on Monday, August 10th. The shares were bought at an average price of $25.73 per share, for a total transaction of $25,730.00. Following the transaction, the insider directly owned 12,302 shares of the company's stock, valued at $316,530.46. This trade represents a 8.85% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 22.62% of the company's stock.

Institutional Trading of Starz Entertainment

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Legal & General Group Plc bought a new stake in Starz Entertainment during the 2nd quarter valued at approximately $34,000. Sei Investments Co. purchased a new position in shares of Starz Entertainment in the 1st quarter valued at approximately $190,000. Persistent Asset Partners Ltd purchased a new position in shares of Starz Entertainment in the 2nd quarter valued at approximately $196,000. Deutsche Bank AG purchased a new position in shares of Starz Entertainment in the 2nd quarter valued at approximately $342,000. Finally, Ratan Capital Management LP bought a new stake in shares of Starz Entertainment during the second quarter valued at approximately $368,000.

About Starz Entertainment

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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