Madison Square Garden Entertainment (NYSE:MSGE) Shares Gap Down on Disappointing Earnings

Key Points

• Madison Square Garden Entertainment's stock price gapped down from a previous close of $40.22 to open at $38.88, and it last traded at $36.59.
• Analysts have mixed opinions on the stock, with one having a "hold" rating and four assigning "buy" ratings, leading to a consensus target price of $43.00.
• Institutional investors and hedge funds own 96.86% of Madison Square Garden Entertainment’s stock, with significant stakes increased by major firms like JPMorgan Chase & Co. and Wells Fargo & Company.

Madison Square Garden Entertainment Corp. (NYSE:MSGE - Get Free Report) shares gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $40.22, but opened at $38.88. Madison Square Garden Entertainment shares last traded at $36.59, with a volume of 51,790 shares trading hands.

The company reported ($0.50) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.47) by ($0.03). The business had revenue of $154.14 million during the quarter, compared to the consensus estimate of $151.17 million. Madison Square Garden Entertainment had a negative return on equity of 458.14% and a net margin of 3.97%. The firm's revenue was down 17.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.41 earnings per share.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on MSGE shares. Wall Street Zen downgraded shares of Madison Square Garden Entertainment from a "hold" rating to a "sell" rating in a report on Saturday. Susquehanna started coverage on shares of Madison Square Garden Entertainment in a research report on Monday, April 28th. They set a "positive" rating and a $39.00 price objective on the stock. The Goldman Sachs Group boosted their price target on shares of Madison Square Garden Entertainment from $36.00 to $41.00 and gave the stock a "buy" rating in a research report on Wednesday, May 7th. Finally, Morgan Stanley boosted their price target on shares of Madison Square Garden Entertainment from $41.00 to $44.00 and gave the stock an "equal weight" rating in a research report on Tuesday, August 12th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the company's stock. According to MarketBeat, Madison Square Garden Entertainment presently has a consensus rating of "Moderate Buy" and a consensus price target of $43.00.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. KBC Group NV purchased a new position in shares of Madison Square Garden Entertainment in the 1st quarter valued at approximately $31,000. CWM LLC increased its holdings in shares of Madison Square Garden Entertainment by 623.8% during the 2nd quarter. CWM LLC now owns 1,035 shares of the company's stock valued at $41,000 after purchasing an additional 892 shares in the last quarter. Cullen Frost Bankers Inc. increased its holdings in shares of Madison Square Garden Entertainment by 163.0% during the 2nd quarter. Cullen Frost Bankers Inc. now owns 1,086 shares of the company's stock valued at $43,000 after purchasing an additional 673 shares in the last quarter. Sterling Capital Management LLC increased its holdings in Madison Square Garden Entertainment by 785.2% in the 4th quarter. Sterling Capital Management LLC now owns 1,133 shares of the company's stock worth $40,000 after acquiring an additional 1,005 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S purchased a new stake in Madison Square Garden Entertainment in the 1st quarter worth $40,000. 96.86% of the stock is currently owned by institutional investors.

Madison Square Garden Entertainment Stock Performance

The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 60.61. The firm's fifty day moving average is $38.76 and its 200 day moving average is $35.91. The company has a market cap of $1.74 billion, a PE ratio of 48.30 and a beta of 0.44.

Madison Square Garden Entertainment Company Profile

Madison Square Garden Entertainment Corp. engages in the provision of entertainment services. Its portfolio of venues includes The Garden, Radio City Music Hall, the Beacon Theatre, The Theater at Madison Square, and The Chicago Theatre. The company was founded in 1879 and is headquartered in New York, NY.