Genius Sports (NYSE:GENI) Shares Up 14% on Analyst Upgrade

Key Points

• Genius Sports shares jumped 14% to about $8.06 after Wall Street Zen upgraded the stock from “strong sell” to “sell,” with trading volume 24% above its average.
• Analyst sentiment remains broadly positive despite the upgrade: the stock has a “Moderate Buy” consensus rating and an average price target of $11.14, compared with recent trading near $8.
• First-quarter revenue rose 30.5% year over year to $187.95 million, exceeding estimates, but the company reported an adjusted loss of $0.21 per share versus the expected $0.09 loss and continues to post negative profitability metrics.

Genius Sports Limited (NYSE:GENI - Get Free Report)'s stock price rose 14% during trading on Tuesday after Wall Street Zen upgraded the stock from a strong sell rating to a sell rating. The stock traded as high as $7.86 and last traded at $8.0590. 7,805,417 shares traded hands during trading, an increase of 24% from the average daily volume of 6,276,399 shares. The stock had previously closed at $7.07.

A number of other analysts have also commented on GENI. Truist Financial lowered their target price on shares of Genius Sports from $13.00 to $10.00 and set a "buy" rating for the company in a report on Tuesday, April 21st. Roth Capital set a $10.00 price target on Genius Sports in a research report on Friday, May 8th. The Goldman Sachs Group initiated coverage on Genius Sports in a research note on Monday, July 27th. They set a "buy" rating and a $9.50 price objective for the company. Oppenheimer upped their price objective on Genius Sports from $9.00 to $10.00 and gave the company an "outperform" rating in a report on Friday. Finally, Citigroup cut 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. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $11.14.

Hedge Funds Weigh In On Genius Sports

Several hedge funds have recently made changes to their positions in GENI. Royal Bank of Canada grew its holdings in shares of Genius Sports by 17.6% in the 1st quarter. Royal Bank of Canada now owns 44,339 shares of the company's stock valued at $444,000 after acquiring an additional 6,623 shares in the last quarter. Cetera Investment Advisers increased its position in shares of Genius Sports by 10.0% during the 2nd quarter. Cetera Investment Advisers now owns 15,288 shares of the company's stock worth $159,000 after purchasing an additional 1,388 shares during the last quarter. Prudential Financial Inc. bought a new position in shares of Genius Sports in the second quarter valued at $266,000. Invesco Ltd. increased 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 worth $34,233,000 after buying an additional 3,202,290 shares during the last quarter. Finally, Frontier Capital Management Co. LLC bought a new stake in Genius Sports during the second quarter worth $14,220,000. 81.91% of the stock is owned by institutional investors.

Genius Sports Stock Performance

The company has a market capitalization of $1.98 billion, a P/E ratio of -13.22 and a beta of 1.90. The stock's fifty day moving average price is $6.38 and its 200-day moving average price is $6.00.

Genius Sports (NYSE:GENI - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.21) earnings per share (EPS) for the quarter, missing the consensus estimate 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 the consensus estimate of $170.60 million. During the same quarter in the prior year, the company earned ($0.03) EPS. Genius Sports's quarterly revenue was up 30.5% on a year-over-year basis. On average, research analysts predict that Genius Sports Limited will post -0.12 EPS for the current fiscal year.

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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