Genius Sports (NYSE:GENI) Downgraded to Strong Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Genius Sports from “sell” to “strong sell,” adding to a mixed analyst backdrop for the stock.
• Despite the downgrade, the broader analyst consensus remains Moderate Buy, with 2 Strong Buy, 14 Buy, 2 Hold, and 1 Sell ratings and an average price target of $11.56.
• Genius Sports reported better-than-expected revenue of $187.95 million last quarter, but EPS came in below estimates at -$0.21, and the company continues to show negative profitability metrics.

Genius Sports (NYSE:GENI - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research note issued on Sunday.

A number of other equities analysts have also recently issued reports on GENI. Stifel Nicolaus lifted their target price on shares of Genius Sports from $5.00 to $7.00 and gave the stock a "hold" rating in a research report on Wednesday. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Genius Sports in a research note on Monday, May 11th. They set a "buy" rating and a $10.00 price objective for the company. Truist Financial cut their price objective on Genius Sports from $13.00 to $10.00 and set a "buy" rating for the company in a research report on Tuesday, April 21st. Citigroup reduced their target price on Genius Sports from $9.00 to $8.00 and set a "buy" rating on the stock in a research note on Friday, May 8th. Finally, Roth Capital set a $10.00 target price on Genius Sports in a report on Friday, May 8th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Genius Sports currently has a consensus rating of "Moderate Buy" and an average price target of $11.56.

Genius Sports Stock Performance

GENI stock opened at $6.53 on Friday. The firm has a market cap of $1.61 billion, a PE ratio of -10.70 and a beta of 1.91. The firm's 50 day moving average price is $6.14 and its 200-day moving average price is $6.18. Genius Sports has a one year low of $3.83 and a one year high of $13.73.

Genius Sports (NYSE:GENI - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.21) earnings per share for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.12). Genius Sports had a negative net margin of 22.26% and a negative return on equity of 20.34%. The business had revenue of $187.95 million during the quarter, compared to analysts' expectations of $170.60 million. During the same quarter last year, the firm earned ($0.03) earnings per share. The firm's quarterly revenue was up 30.5% compared to the same quarter last year. Equities research analysts predict that Genius Sports will post -0.12 EPS for the current fiscal year.

Hedge Funds Weigh In On Genius Sports

A number of hedge funds and other institutional investors have recently modified their holdings of GENI. Royal Bank of Canada lifted its position in shares of Genius Sports by 17.6% during the 1st quarter. Royal Bank of Canada now owns 44,339 shares of the company's stock worth $444,000 after purchasing an additional 6,623 shares during the last quarter. Cetera Investment Advisers raised its position in Genius Sports by 10.0% in the second quarter. Cetera Investment Advisers now owns 15,288 shares of the company's stock worth $159,000 after purchasing an additional 1,388 shares in the last quarter. Prudential Financial Inc. bought a new position in Genius Sports during the second quarter worth about $266,000. Invesco Ltd. boosted its holdings in Genius Sports by 3,584.2% during the second quarter. Invesco Ltd. now owns 3,291,635 shares of the company's stock valued at $34,233,000 after purchasing an additional 3,202,290 shares in the last quarter. Finally, Frontier Capital Management Co. LLC acquired a new stake in Genius Sports during the second quarter valued at approximately $14,220,000. Institutional investors and hedge funds own 81.91% of the company's stock.

About Genius Sports

Genius Sports is a global sports technology company that specializes in collecting, analyzing and distributing real-time sports data and video streams. The firm provides official data feeds, live video streaming solutions and digital engagement tools to sports leagues, federations, broadcasters and betting operators. By integrating data directly from sporting events through its network of field officials and proprietary technology, Genius Sports ensures accuracy and integrity for partners who rely on up-to-the-second information.

The company’s product suite includes a cloud-based platform for data capture and distribution, an integrity services offering designed to identify and mitigate match-fixing risks, and a suite of commercial products that power odds creation, in-game betting markets and fan engagement experiences.

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