Madison Square Garden Entertainment (NYSE:MSGE) Shares Gap Down Following Weak 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)'s stock price gapped down prior to trading on Wednesday following a dissappointing 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 changing hands.

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

Analyst Ratings Changes

Several research analysts have commented on MSGE shares. Morgan Stanley lifted 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 note on Tuesday, August 12th. Wall Street Zen downgraded shares of Madison Square Garden Entertainment from a "hold" rating to a "sell" rating in a research report on Saturday. Susquehanna began 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. Finally, The Goldman Sachs Group boosted their price objective on shares of Madison Square Garden Entertainment from $36.00 to $41.00 and gave the company a "buy" rating in a research report on Wednesday, May 7th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $43.00.

Institutional Trading of Madison Square Garden Entertainment

A number of hedge funds have recently modified their holdings of the business. KBC Group NV purchased a new stake in shares of Madison Square Garden Entertainment in the 1st quarter worth about $31,000. SG Americas Securities LLC purchased a new stake in shares of Madison Square Garden Entertainment in the 1st quarter worth about $556,000. Bank of America Corp DE grew its position in shares of Madison Square Garden Entertainment by 1.5% in the 4th quarter. Bank of America Corp DE now owns 585,638 shares of the company's stock worth $20,849,000 after buying an additional 8,592 shares during the period. Deutsche Bank AG grew its position in shares of Madison Square Garden Entertainment by 49.8% in the 4th quarter. Deutsche Bank AG now owns 32,672 shares of the company's stock worth $1,163,000 after buying an additional 10,863 shares during the period. Finally, Principal Financial Group Inc. grew its position in shares of Madison Square Garden Entertainment by 3.5% in the 1st quarter. Principal Financial Group Inc. now owns 20,713 shares of the company's stock worth $678,000 after buying an additional 702 shares during the period. Institutional investors own 96.86% of the company's stock.

Madison Square Garden Entertainment Stock Down 0.3%

The stock's 50-day moving average price is $38.76 and its two-hundred day moving average price is $35.91. The stock has a market capitalization of $1.74 billion, a PE ratio of 48.33 and a beta of 0.44. The company has a debt-to-equity ratio of 60.61, a quick ratio of 0.47 and a current ratio of 0.47.

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.