Genius Sports Target of Unusually Large Options Trading (NYSE:GENI)

Key Points

• Genius Sports experienced a significant increase in options trading, with 6,309 call options bought, marking a 149% rise compared to its average daily volume.
• Wall Street analysts are optimistic about GENI, with a consensus rating of "Buy" and an average price target of $12.72, supported by multiple upgrades from various financial institutions.
• The company recently initiated a $100 million share buyback program, indicating the board's belief that the stock is undervalued, alongside reporting a 20.3% revenue growth year-over-year.

Genius Sports Limited (NYSE:GENI - Get Free Report) was the target of some unusual options trading on Wednesday. Investors bought 6,309 call options on the stock. Thisisanincreaseof149% compared to the typical volume of 2,536 call options.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on GENI shares. B. Riley reissued a "buy" rating on shares of Genius Sports in a research report on Wednesday, May 7th. Northland Securities began coverage on Genius Sports in a research note on Friday, July 25th. They issued an "outperform" rating and a $14.00 price target on the stock. Truist Financial assumed coverage on shares of Genius Sports in a research report on Tuesday, July 1st. They set a "buy" rating and a $14.00 price target on the stock. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Genius Sports in a research note on Monday, April 21st. They issued a "buy" rating and a $12.00 price objective on the stock. Finally, Needham & Company LLC restated a "buy" rating and issued a $13.00 target price on shares of Genius Sports in a research note on Thursday, June 12th. One research analyst has rated the stock with a hold rating, fifteen have assigned a buy rating and two have assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $12.72.

Genius Sports Stock Down 0.6%

NYSE:GENI traded down $0.07 on Friday, reaching $11.18. 1,472,488 shares of the company's stock were exchanged, compared to its average volume of 4,044,687. The business has a fifty day moving average of $10.16 and a 200-day moving average of $9.82. The firm has a market capitalization of $2.41 billion, a price-to-earnings ratio of -58.82 and a beta of 1.86. Genius Sports has a 52-week low of $5.76 and a 52-week high of $11.74.

Genius Sports (NYSE:GENI - Get Free Report) last posted its quarterly earnings data on Tuesday, May 6th. The company reported ($0.03) earnings per share for the quarter, topping analysts' consensus estimates of ($0.05) by $0.02. The company had revenue of $143.99 million during the quarter, compared to analysts' expectations of $143.31 million. Genius Sports had a negative return on equity of 6.90% and a negative net margin of 8.54%. The firm's revenue for the quarter was up 20.3% on a year-over-year basis. During the same period last year, the firm earned ($0.11) EPS. As a group, equities analysts anticipate that Genius Sports will post -0.1 earnings per share for the current year.

Genius Sports declared that its Board of Directors has initiated a share repurchase program on Tuesday, May 6th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to buy up to 4.4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Genius Sports

Several hedge funds have recently modified their holdings of the company. Quarry LP acquired a new position in Genius Sports during the 1st quarter valued at about $37,000. Pacer Advisors Inc. lifted its stake in Genius Sports by 61.5% in the 1st quarter. Pacer Advisors Inc. now owns 3,754 shares of the company's stock worth $38,000 after acquiring an additional 1,430 shares in the last quarter. CWM LLC grew its stake in Genius Sports by 275.5% in the second quarter. CWM LLC now owns 3,980 shares of the company's stock valued at $41,000 after purchasing an additional 2,920 shares in the last quarter. Emerald Mutual Fund Advisers Trust bought a new position in Genius Sports during the fourth quarter valued at about $58,000. Finally, FNY Investment Advisers LLC bought a new position in Genius Sports during the second quarter valued at about $75,000. 81.91% of the stock is owned by institutional investors and hedge funds.

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.