fuboTV (NYSE:FUBO) Shares Gap Down After Earnings Miss

Key Points

• Shares gapped down after fuboTV reported an EPS loss of ($0.02) vs. a $0.02 consensus (miss by $0.04) even as revenue beat at $1.55B (up 40% YoY); the stock opened at $1.70 after closing $2.27 and traded down roughly 24% on heavy volume.
• Significant insider selling: CEO David Gandler and CFO John Janedis sold large stakes this quarter, and insiders have sold 610,095 shares (~$1.82M) in the last 90 days; insiders now own 5.30% of the stock.
• Mixed analyst outlook: the consensus is an average "Hold" rating (2 Buy, 2 Hold, 1 Sell) with an average price target of $4.58, while institutional investors hold about 39.3% of shares.

fuboTV Inc. (NYSE:FUBO - Get Free Report)'s share price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $2.27, but opened at $1.70. fuboTV shares last traded at $1.6750, with a volume of 16,803,800 shares changing hands.

The company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.02 by ($0.04). The company had revenue of $1.55 billion during the quarter, compared to analysts' expectations of $1.45 billion. fuboTV had a negative return on equity of 6.66% and a net margin of 7.61%.The business's quarterly revenue was up 40.0% on a year-over-year basis. During the same quarter last year, the business earned ($0.11) earnings per share.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Zacks Research downgraded fuboTV from a "strong-buy" rating to a "hold" rating in a report on Friday, December 12th. Weiss Ratings restated a "sell (d+)" rating on shares of fuboTV in a report on Wednesday, October 8th. Wall Street Zen upgraded fuboTV from a "sell" rating to a "hold" rating in a research note on Friday, January 23rd. Raymond James Financial started coverage on shares of fuboTV in a research report on Monday, December 1st. They set a "market perform" rating for the company. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $4.25 price objective on shares of fuboTV in a research note on Tuesday, November 4th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $4.58.

Insiders Place Their Bets

In other fuboTV news, CEO David Gandler sold 170,279 shares of the stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $2.55, for a total transaction of $434,211.45. Following the completion of the transaction, the chief executive officer owned 561,428 shares of the company's stock, valued at $1,431,641.40. This represents a 23.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO John Janedis sold 130,478 shares of the firm's stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $3.12, for a total value of $407,091.36. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 610,095 shares of company stock worth $1,818,811 in the last 90 days. 5.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. SBI Securities Co. Ltd. increased its position in fuboTV by 25.3% in the fourth quarter. SBI Securities Co. Ltd. now owns 69,582 shares of the company's stock worth $175,000 after purchasing an additional 14,033 shares during the last quarter. Aries Wealth Management bought a new stake in fuboTV during the fourth quarter worth approximately $25,000. Concurrent Investment Advisors LLC purchased a new stake in fuboTV during the fourth quarter valued at approximately $26,000. Universal Beteiligungs und Servicegesellschaft mbH lifted its stake in shares of fuboTV by 70.3% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 39,538 shares of the company's stock valued at $100,000 after purchasing an additional 16,325 shares during the last quarter. Finally, Farther Finance Advisors LLC boosted its holdings in shares of fuboTV by 47.7% in the 4th quarter. Farther Finance Advisors LLC now owns 15,045 shares of the company's stock worth $38,000 after purchasing an additional 4,859 shares during the period. 39.31% of the stock is currently owned by institutional investors.

fuboTV Trading Down 24.0%

The stock has a market cap of $591.20 million, a PE ratio of 4.79 and a beta of 1.93. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.69 and a current ratio of 0.69. The stock has a fifty day moving average price of $2.64 and a 200 day moving average price of $3.37.

fuboTV Company Profile

fuboTV Inc is a sports-focused live TV streaming platform that provides subscribers with access to a broad range of televised sports, news and entertainment programming. The service offers tiered channel packages featuring major networks such as ESPN, Fox Sports, NBC and regional sports networks, along with bundled options for premium channels and international programming. A core element of fuboTV's proposition is its cloud DVR functionality, which enables users to record live events and store them for later viewing.

In addition to its live television offerings, fuboTV has developed an in-house ad-supported streaming network—fubo Sports Network—that delivers original sports news, analysis and highlights.

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