Madison Square Garden (NYSE:MSGS) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded MSGS from “hold” to “sell,” although the broader analyst consensus remains “hold,” with four buy ratings, four holds and one sell rating.
• Several analysts recently raised their price targets, including Guggenheim to $584, JPMorgan to $485 and Susquehanna to $477; the consensus target is $471.20 versus a recent share price of $406.63.
• MSG Sports reported stronger-than-expected quarterly results and is advancing a proposed spin-off separating the Rangers and Knicks businesses, but investors remain concerned about the sustainability of championship-related gains and the stock’s elevated valuation.

Madison Square Garden (NYSE:MSGS - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

MSGS has been the subject of several other reports. Susquehanna upped their target price on Madison Square Garden from $430.00 to $477.00 and gave the company a "positive" rating in a report on Friday. JPMorgan Chase & Co. lifted their price target on Madison Square Garden from $450.00 to $485.00 and gave the stock an "overweight" rating in a research note on Friday. Morgan Stanley upgraded Madison Square Garden from an "equal weight" rating to an "overweight" rating and set a $450.00 price objective on the stock in a report on Wednesday, July 15th. Guggenheim upped their price objective on shares of Madison Square Garden from $522.00 to $584.00 and gave the company a "buy" rating in a research note on Friday. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Madison Square Garden in a report on Wednesday, June 24th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Madison Square Garden presently has a consensus rating of "Hold" and a consensus price target of $471.20.

Madison Square Garden Stock Performance

Shares of NYSE:MSGS opened at $406.63 on Friday. The company has a market capitalization of $9.79 billion, a PE ratio of 1,355.48 and a beta of 0.62. The stock has a fifty day moving average of $389.78 and a 200-day moving average of $347.55. Madison Square Garden has a one year low of $191.33 and a one year high of $438.93.

Institutional Trading of Madison Square Garden

Hedge funds and other institutional investors have recently modified their holdings of the business. Price T Rowe Associates Inc. MD raised its position in Madison Square Garden by 67.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 699,378 shares of the company's stock valued at $180,895,000 after buying an additional 282,318 shares during the period. Reinhart Partners LLC. acquired a new stake in Madison Square Garden during the 4th quarter worth about $55,586,000. Norges Bank purchased a new position in Madison Square Garden during the 4th quarter valued at about $51,107,000. TOMS Capital Investment Management LP grew its stake in Madison Square Garden by 82.7% during the 4th quarter. TOMS Capital Investment Management LP now owns 329,705 shares of the company's stock valued at $85,278,000 after acquiring an additional 149,205 shares in the last quarter. Finally, Millennium Management LLC increased its holdings in shares of Madison Square Garden by 182.0% in the 4th quarter. Millennium Management LLC now owns 131,123 shares of the company's stock valued at $33,915,000 after purchasing an additional 84,628 shares during the period. Institutional investors and hedge funds own 68.94% of the company's stock.

Madison Square Garden News Summary

Here are the key news stories impacting Madison Square Garden this week:

• Positive Sentiment: Spin-off advances: MSG Sports publicly filed a Form 10 registration statement for the proposed separation of its New York Rangers business from its New York Knicks business. The transaction is intended to create two separately traded companies, potentially making each business easier to value and giving investors greater strategic flexibility. MSG Sports Form 10 Registration Statement
• Positive Sentiment: Analysts raised targets: Guggenheim increased its target to $584 and reiterated a “buy” rating, while JPMorgan raised its target to $485 with an “overweight” rating and Susquehanna lifted its target to $477 with a “positive” rating. The revisions indicate improving expectations for MSGS’s earnings and asset value. Analyst price-target revisions
• Positive Sentiment: Quarterly results beat expectations: Fiscal fourth-quarter earnings were approximately $1.16–$1.19 per share, versus consensus estimates ranging from $0.64 to $0.72, while revenue reached $278.75 million, up 36.6% year over year and well above the $227.67 million estimate. The earnings improvement was linked in part to the Knicks’ championship-related boost. MSG Sports beats fourth-quarter estimates
• Neutral Sentiment: Strong sports performance is helping near-term results: Coverage highlighted the Knicks’ success as a major contributor to the quarterly beat and recent stock momentum. However, championship-related revenue and enthusiasm may be difficult to repeat at the same level in future periods. Knicks power MSG Sports toward fourth win in five sessions
• Negative Sentiment: Valuation concerns remain: Commentary argued that the Knicks’ championship-driven earnings beat does not necessarily establish a durable investment case, suggesting investors may be cautious about one-time benefits and the stock’s elevated valuation. Knicks’ win does not support an investment case

About Madison Square Garden

Madison Square Garden Sports Corp NYSE: MSGS is a leading sports and entertainment holding company focused on professional sports franchises and related media assets. The company owns and operates teams such as the NBA's New York Knicks, the NHL's New York Rangers and the WNBA's New York Liberty. Through these flagship franchises, MSG Sports offers a range of products and services including ticketing, premium seating and sponsorship opportunities, targeting fans in the New York metropolitan area and beyond.

In addition to team operations, Madison Square Garden Sports Corp holds a majority stake in MSG Networks, a regional cable network that broadcasts live sporting events, news and original programming.

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.

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