Sphere Entertainment Co. $SPHR Shares Purchased by Ariel Investments LLC

Key Points

• Ariel Investments LLC increased its holdings in Sphere Entertainment Co. (NYSE:SPHR) by 9.6% in the first quarter, totaling 6,298,139 shares, making it the fund's 12th largest investment.
• Several institutional investors have also significantly increased their stakes in Sphere Entertainment, with Steadfast Capital Management growing its position by 183.8% in the last quarter.
• Brokerages are optimistic about SPHR, with multiple firms issuing buy ratings and raising their price targets, which contribute to a current average target price of $49.50 for the stock.

Ariel Investments LLC lifted its position in shares of Sphere Entertainment Co. (NYSE:SPHR - Free Report) by 9.6% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 6,298,139 shares of the company's stock after purchasing an additional 553,947 shares during the quarter. Sphere Entertainment accounts for approximately 2.4% of Ariel Investments LLC's portfolio, making the stock its 12th largest holding. Ariel Investments LLC owned 17.60% of Sphere Entertainment worth $206,075,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. JAT Capital Mgmt LP acquired a new stake in shares of Sphere Entertainment during the 1st quarter worth approximately $1,173,000. Royal Bank of Canada grew its stake in shares of Sphere Entertainment by 5.5% during the 1st quarter. Royal Bank of Canada now owns 150,614 shares of the company's stock worth $4,928,000 after purchasing an additional 7,891 shares during the period. Graham Capital Management L.P. grew its stake in shares of Sphere Entertainment by 17.8% during the 1st quarter. Graham Capital Management L.P. now owns 68,166 shares of the company's stock worth $2,230,000 after purchasing an additional 10,299 shares during the period. Canada Pension Plan Investment Board acquired a new stake in shares of Sphere Entertainment during the 1st quarter worth approximately $1,976,000. Finally, Landscape Capital Management L.L.C. grew its stake in shares of Sphere Entertainment by 3.4% during the 1st quarter. Landscape Capital Management L.L.C. now owns 183,015 shares of the company's stock worth $5,988,000 after purchasing an additional 6,015 shares during the period. Institutional investors and hedge funds own 92.03% of the company's stock.

Sphere Entertainment Price Performance

SPHR stock traded up $0.40 during midday trading on Friday, reaching $48.84. The stock had a trading volume of 953,211 shares, compared to its average volume of 962,062. The company's fifty day simple moving average is $43.16 and its 200 day simple moving average is $37.43. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 0.36. The company has a market cap of $1.75 billion, a price-to-earnings ratio of -9.18 and a beta of 1.74. Sphere Entertainment Co. has a 52-week low of $23.89 and a 52-week high of $49.98.

Sphere Entertainment (NYSE:SPHR - Get Free Report) last announced its quarterly earnings data on Monday, August 11th. The company reported $3.39 earnings per share for the quarter, beating analysts' consensus estimates of ($1.57) by $4.96. The company had revenue of $282.68 million for the quarter, compared to analyst estimates of $280.23 million. Sphere Entertainment had a negative return on equity of 19.27% and a negative net margin of 14.68%.The firm's revenue for the quarter was up 3.4% on a year-over-year basis. During the same quarter last year, the firm posted ($2.00) EPS. As a group, sell-side analysts predict that Sphere Entertainment Co. will post -11.47 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have recently commented on SPHR shares. Benchmark reaffirmed a "sell" rating and set a $35.00 price objective on shares of Sphere Entertainment in a research note on Monday, May 19th. Morgan Stanley lifted their price target on shares of Sphere Entertainment from $35.00 to $40.00 and gave the company an "equal weight" rating in a research note on Tuesday, August 12th. Craig Hallum began coverage on shares of Sphere Entertainment in a research note on Monday, June 23rd. They issued a "buy" rating and a $75.00 price target on the stock. Wall Street Zen raised shares of Sphere Entertainment from a "sell" rating to a "hold" rating in a research note on Saturday, July 12th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Sphere Entertainment from $54.00 to $55.00 and gave the company an "overweight" rating in a research note on Wednesday, May 21st. Six equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $49.50.

Sphere Entertainment Profile

Sphere Entertainment Co engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre.