Lionsgate Studios (NYSE:LION) Shares Up 10.6% - Still a Buy?

Key Points

• Lionsgate Studios' stock surged 10.6% during trading on Thursday, reaching a last traded price of $7.31, with trading volume significantly exceeding the average.
• Analysts have a consensus rating of "Moderate Buy" for the stock, with a price target averaging $8.75 from various equity research firms.
• Insider activity shows that major shareholder Liberty 77 Capital L.P. purchased 500,000 shares at $5.63 each, increasing their ownership stake in the company.

Lionsgate Studios Corp. (NYSE:LION - Get Free Report)'s stock price was up 10.6% during trading on Thursday . The stock traded as high as $7.31 and last traded at $7.31. Approximately 4,081,858 shares were traded during trading, an increase of 69% from the average daily volume of 2,421,415 shares. The stock had previously closed at $6.61.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on LION shares. Raymond James Financial started coverage on shares of Lionsgate Studios in a research note on Tuesday, May 20th. They set an "outperform" rating and a $10.00 price objective for the company. Citigroup reduced their target price on shares of Lionsgate Studios from $13.00 to $10.00 and set a "buy" rating for the company in a report on Thursday, May 29th. TD Cowen began coverage on shares of Lionsgate Studios in a report on Tuesday, June 3rd. They issued a "hold" rating and a $8.00 price objective for the company. Loop Capital began coverage on shares of Lionsgate Studios in a report on Wednesday, June 4th. They issued a "hold" rating and a $8.00 price objective for the company. Finally, Robert W. Baird began coverage on shares of Lionsgate Studios in a report on Friday, September 5th. They issued an "outperform" rating and a $8.00 price objective for the company. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Lionsgate Studios currently has an average rating of "Moderate Buy" and a consensus price target of $8.75.

Lionsgate Studios Stock Down 1.2%

The stock has a market capitalization of $2.08 billion, a price-to-earnings ratio of -10.70 and a beta of -0.21. The business's 50-day moving average is $6.40 and its two-hundred day moving average is $7.20.

Lionsgate Studios (NYSE:LION - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported ($0.34) EPS for the quarter, missing the consensus estimate of ($0.16) by ($0.18). As a group, analysts forecast that Lionsgate Studios Corp. will post 0.08 EPS for the current fiscal year.

Insider Activity at Lionsgate Studios

In related news, major shareholder Liberty 77 Capital L.P. acquired 500,000 shares of the firm's stock in a transaction dated Monday, July 7th. The shares were purchased at an average cost of $5.63 per share, for a total transaction of $2,815,000.00. Following the acquisition, the insider owned 37,476,036 shares in the company, valued at $210,990,082.68. The trade was a 1.35% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In the last quarter, insiders have purchased 1,072,089 shares of company stock valued at $6,050,156.

Institutional Investors Weigh In On Lionsgate Studios

A number of hedge funds have recently added to or reduced their stakes in LION. Liberty 77 Capital L.P. purchased a new stake in shares of Lionsgate Studios in the 2nd quarter valued at approximately $214,831,000. Jefferies Financial Group Inc. increased its position in shares of Lionsgate Studios by 251.0% in the 2nd quarter. Jefferies Financial Group Inc. now owns 5,805,850 shares of the company's stock valued at $33,732,000 after purchasing an additional 4,151,822 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Lionsgate Studios by 658.6% in the 2nd quarter. Geode Capital Management LLC now owns 4,740,225 shares of the company's stock valued at $27,547,000 after purchasing an additional 4,115,334 shares during the last quarter. Anson Funds Management LP increased its position in shares of Lionsgate Studios by 11.9% in the 1st quarter. Anson Funds Management LP now owns 3,538,500 shares of the company's stock valued at $26,433,000 after purchasing an additional 375,409 shares during the last quarter. Finally, Millennium Management LLC increased its position in shares of Lionsgate Studios by 72.6% in the 1st quarter. Millennium Management LLC now owns 1,991,515 shares of the company's stock valued at $14,877,000 after purchasing an additional 837,774 shares during the last quarter.

About Lionsgate Studios

Lionsgate Studios Corp. engages in the provision of motion picture and studio operations that bring a varied portfolio of entertainment to consumers. The company is headquartered in Santa Monica, CA.