Lionsgate Studios (NYSE:LION) Trading Down 7.2% - Here's What Happened

Key Points

• Shares fell 7.2% intraday to $11.55 on Tuesday, with volume of ~3.59 million shares, about 34% above the stock's average daily volume.
• Lionsgate missed EPS for the quarter (reported -$0.07 vs. consensus -$0.02) even as revenue beat at $724.3 million versus $706.0 million; analysts expect the company to post about -$0.54 EPS for the current year.
• Analyst sentiment is mixed with a consensus rating of "Hold" and a consensus target price of $10.81, while individual broker targets cluster roughly in the $11–$12 range after several recent upgrades and reiterations.

Shares of Lionsgate Studios Corp. (NYSE:LION - Get Free Report) dropped 7.2% during mid-day trading on Tuesday . The company traded as low as $11.54 and last traded at $11.55. Approximately 3,589,611 shares traded hands during mid-day trading, an increase of 34% from the average daily volume of 2,673,911 shares. The stock had previously closed at $12.45.

Analysts Set New Price Targets

Several brokerages have recently weighed in on LION. Wall Street Zen upgraded shares of Lionsgate Studios from a "sell" rating to a "hold" rating in a research report on Saturday. Zacks Research raised shares of Lionsgate Studios from a "strong sell" rating to a "hold" rating in a research report on Monday, January 5th. Barrington Research reaffirmed an "outperform" rating and set a $11.50 price objective on shares of Lionsgate Studios in a report on Friday, February 6th. Morgan Stanley reiterated an "overweight" rating and issued a $11.00 price objective on shares of Lionsgate Studios in a research note on Friday, February 6th. Finally, Benchmark increased their target price on Lionsgate Studios from $11.00 to $12.00 and gave the stock a "buy" rating in a report on Tuesday, February 3rd. Seven investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $10.81.

Lionsgate Studios Stock Down 7.0%

The stock has a market capitalization of $3.36 billion, a price-to-earnings ratio of -13.62 and a beta of -0.48. The stock's 50-day simple moving average is $9.62 and its 200 day simple moving average is $8.43.

Lionsgate Studios (NYSE:LION - Get Free Report) last posted its earnings results on Thursday, February 5th. The company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.05). The firm had revenue of $724.30 million for the quarter, compared to the consensus estimate of $706.03 million. As a group, equities research analysts anticipate that Lionsgate Studios Corp. will post -0.54 earnings per share for the current year.

Hedge Funds Weigh In On Lionsgate Studios

Several institutional investors have recently bought and sold shares of the business. Osaic Holdings Inc. grew its holdings in shares of Lionsgate Studios by 4,852.0% during the second quarter. Osaic Holdings Inc. now owns 4,952 shares of the company's stock worth $29,000 after purchasing an additional 4,852 shares during the last quarter. GAMMA Investing LLC lifted its position in Lionsgate Studios by 99.3% during the 4th quarter. GAMMA Investing LLC now owns 3,559 shares of the company's stock worth $32,000 after buying an additional 1,773 shares in the last quarter. CIBC Private Wealth Group LLC acquired a new position in Lionsgate Studios during the 3rd quarter worth about $38,000. Caitong International Asset Management Co. Ltd bought a new stake in Lionsgate Studios during the 4th quarter worth about $44,000. Finally, Newbridge Financial Services Group Inc. bought a new stake in Lionsgate Studios during the 4th quarter worth about $55,000.

About Lionsgate Studios

Lionsgate Studios, operating under the ticker NYSE:LION, is a leading global entertainment company specializing in the production, acquisition and distribution of motion pictures, television programming and digital content. Headquartered in Santa Monica, California, and with additional operations in Vancouver, the company develops, finances and markets feature films that span a wide range of genres—from major franchise hits like The Hunger Games and John Wick to independent and specialty titles.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.