Genius Sports (NYSE:GENI) Stock Price Down 6.5% - Should You Sell?

Key Points

• Genius Sports Limited shares decreased by 6.5%, closing at $12.55 amid significantly lower trading volume, suggesting a potential sell signal for investors.
• Despite the drop, most analysts maintain a "Buy" rating on the stock, with an average price target of $14.22, indicating a belief in future growth.
• The company reported earnings results showing a missed EPS estimate and a negative net margin, though revenue increased 24.4% year-over-year, highlighting mixed financial performance.

Shares of Genius Sports Limited (NYSE:GENI - Get Free Report) dropped 6.5% during mid-day trading on Tuesday . The stock traded as low as $13.09 and last traded at $12.55. Approximately 242,802 shares changed hands during mid-day trading, a decline of 94% from the average daily volume of 4,323,810 shares. The stock had previously closed at $13.43.

Analyst Ratings Changes

GENI has been the topic of several research reports. Wall Street Zen cut Genius Sports from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Northland Capmk raised Genius Sports to a "strong-buy" rating in a report on Friday, July 25th. Benchmark lifted their target price on Genius Sports from $15.00 to $16.00 and gave the stock a "buy" rating in a report on Wednesday, September 10th. Needham & Company LLC lifted their target price on Genius Sports from $13.00 to $16.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Finally, B. Riley boosted their price objective on Genius Sports from $13.00 to $14.00 and gave the stock a "buy" rating in a research note on Thursday, August 7th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $14.22.

Genius Sports Stock Down 6.6%

The stock has a market cap of $2.70 billion, a P/E ratio of -40.47 and a beta of 1.87. The business has a 50 day moving average price of $12.38 and a 200 day moving average price of $10.89.

Genius Sports (NYSE:GENI - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported ($0.21) EPS for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.17). The business had revenue of $118.72 million for the quarter, compared to the consensus estimate of $118.28 million. Genius Sports had a negative net margin of 13.94% and a negative return on equity of 11.48%. The company's quarterly revenue was up 24.4% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.09) EPS. On average, research analysts expect that Genius Sports Limited will post -0.1 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Allspring Global Investments Holdings LLC boosted its holdings in shares of Genius Sports by 62.7% in the first quarter. Allspring Global Investments Holdings LLC now owns 2,161,843 shares of the company's stock valued at $21,683,000 after purchasing an additional 833,335 shares during the period. D.A. Davidson & CO. boosted its holdings in shares of Genius Sports by 67.0% in the first quarter. D.A. Davidson & CO. now owns 89,551 shares of the company's stock valued at $896,000 after purchasing an additional 35,943 shares during the period. Envestnet Asset Management Inc. boosted its holdings in shares of Genius Sports by 194.9% in the first quarter. Envestnet Asset Management Inc. now owns 48,904 shares of the company's stock valued at $490,000 after purchasing an additional 32,322 shares during the period. Greenwood Capital Associates LLC purchased a new stake in shares of Genius Sports in the first quarter valued at approximately $518,000. Finally, IFC Advisors LLC boosted its holdings in shares of Genius Sports by 6.8% in the first quarter. IFC Advisors LLC now owns 2,735,155 shares of the company's stock valued at $27,379,000 after purchasing an additional 173,171 shares during the period. Institutional investors own 81.91% of the company's stock.

About Genius Sports

Genius Sports Limited engages in the development and sale of technology-led products and services to the sports, sports betting, and sports media industries. It offers technology infrastructure for the collection, integration, and distribution of live data of sports leagues; streaming solutions comprising technology, automatic production, and distribution for sports to commercialize video footage of their games; and end-to-end integrity services to sports leagues, such as full-time active monitoring technology, which uses mathematical algorithms to identify and flag suspicious betting activity in global betting markets, as well as a full suite of online and offline educational and consultancy services.

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