BlackRock Inc. Makes New Investment in Starz Entertainment Corp. $STRZ

Key Points

• BlackRock acquired 1.23 million Starz Entertainment shares worth approximately $35.6 million, giving it a 7.37% stake. Several other institutional investors also initiated or increased positions.
• Starz insiders bought shares, including CEO Jeffrey Hirsch’s purchase of 10,000 shares and insider James Kapenstein’s purchase of 1,000 shares; insiders collectively own 22.62% of the company.
• Starz reported a quarterly loss of $11.27 per share, far worse than the expected $0.59 loss, while analysts maintained a consensus “Hold” rating with a $31.50 price target.

BlackRock Inc. acquired a new stake in shares of Starz Entertainment Corp. (NASDAQ:STRZ - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 1,233,509 shares of the company's stock, valued at approximately $35,599,000. BlackRock Inc. owned about 7.37% of Starz Entertainment as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in the company. Geode Capital Management LLC purchased a new stake in shares of Starz Entertainment in the second quarter worth about $5,076,000. Bank of New York Mellon Corp bought a new position in Starz Entertainment during the second quarter valued at approximately $9,018,000. Russell Investments Group Ltd. grew its holdings in Starz Entertainment by 632.9% during the 4th quarter. Russell Investments Group Ltd. now owns 210,771 shares of the company's stock valued at $2,466,000 after buying an additional 182,012 shares in the last quarter. Ancora Advisors LLC grew its holdings in Starz Entertainment by 547.1% during the 3rd quarter. Ancora Advisors LLC now owns 175,325 shares of the company's stock valued at $2,583,000 after buying an additional 148,230 shares in the last quarter. Finally, Marshall Wace LLP bought a new stake in Starz Entertainment in the 2nd quarter worth approximately $2,212,000.

Insider Activity

In other news, insider James M. Kapenstein acquired 1,000 shares of the firm's stock in a transaction on Monday, August 10th. The stock was acquired at an average price of $25.73 per share, with a total value of $25,730.00. Following the completion of the purchase, the insider directly owned 12,302 shares in the company, valued at approximately $316,530.46. This trade represents a 8.85% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Jeffrey Hirsch acquired 10,000 shares of the firm's stock in a transaction on Monday, August 10th. The stock was purchased at an average cost 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 $1,612,000. The trade was a 18.18% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 22.62% of the company's stock.

Starz Entertainment Stock Up 0.2%

NASDAQ STRZ opened at $26.52 on Wednesday. The company has a quick ratio of 0.25, a current ratio of 0.25 and a debt-to-equity ratio of 2.05. The company has a fifty day moving average of $27.02 and a two-hundred day moving average of $21.03. The firm has a market capitalization of $454.13 million, a price-to-earnings ratio of -1.04 and a beta of 2.46. Starz Entertainment Corp. has a 52 week low of $8.40 and a 52 week high of $32.58.

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

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on STRZ shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Starz Entertainment in a report on Wednesday, July 29th. Wall Street Zen cut shares of Starz Entertainment from a "hold" rating to a "sell" rating in a research report on Saturday, July 25th. Morgan Stanley set a $30.00 price target on shares of Starz Entertainment in a research note on Monday, August 10th. B. Riley Financial assumed coverage on shares of Starz Entertainment in a research report on Tuesday, June 30th. They set a "buy" rating and a $45.00 price objective for the company. Finally, Robert W. Baird set a $30.00 price objective on shares of Starz Entertainment and gave the stock an "outperform" rating in a research note on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $31.50.

About Starz Entertainment

Starz Entertainment NASDAQ: STRZ is a global media and entertainment company that operates premium subscription video services across linear television and digital streaming platforms. The company's core offering includes the STARZ and STARZ ENCORE linear networks in the United States, alongside its STARZPLAY streaming service, which is available in North America, parts of Europe, Latin America and select Asian markets. Through its multi-platform distribution strategy, Starz delivers a combination of original programming, feature films and licensed series to a broad subscriber base.

At the heart of Starz Entertainment's business is its investment in original content production.

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