Traders Buy Large Volume of Skydance Call Options (NYSE:SKYD)

Key Points

• Skydance call-option activity surged: Traders bought 94,374 call options, 37% above the average daily volume, while SKYD shares rose 10.6% to $7.85 on unusually heavy trading volume.
• Institutional ownership remains substantial: Hedge funds and other institutional investors own approximately 73% of Skydance, with several major investors recently increasing their positions.
• Analyst sentiment is mostly cautious: The stock has a consensus “Reduce” rating and an average price target of $5.59, despite some analysts maintaining Buy or Market Outperform ratings. Key uncertainties include the company’s debt load, regulatory challenges and limited near-term interest in acquiring its cable networks.

Skydance Corporation (NYSE:SKYD - Get Free Report) was the target of unusually large options trading activity on Wednesday. Traders bought 94,374 call options on the company. This represents an increase of 37% compared to the average daily volume of 69,081 call options.

Institutional Investors Weigh In On Skydance

Several large investors have recently bought and sold shares of the company. MTCO Ltd. boosted its position in shares of Skydance by 21.4% during the 2nd quarter. MTCO Ltd. now owns 7,650,000 shares of the media and entertainment company's stock worth $75,429,000 after acquiring an additional 1,350,000 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Skydance by 126.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,970,920 shares of the media and entertainment company's stock worth $35,812,000 after buying an additional 2,216,433 shares during the last quarter. LTS Liquid Investments LLC grew its position in shares of Skydance by 68.7% in the 1st quarter. LTS Liquid Investments LLC now owns 2,030,591 shares of the media and entertainment company's stock valued at $18,316,000 after buying an additional 827,248 shares during the last quarter. SG Americas Securities LLC lifted its position in Skydance by 106.4% in the first quarter. SG Americas Securities LLC now owns 1,597,902 shares of the media and entertainment company's stock valued at $14,413,000 after acquiring an additional 823,629 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in Skydance during the 2nd quarter worth approximately $14,002,000. 73.00% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on SKYD shares. Weiss Ratings raised Skydance from a "sell (d-)" rating to a "sell (d)" rating in a research report on Thursday, August 6th. Sanford C. Bernstein reissued an "underperform" rating and issued a $6.00 price target (down from $12.00) on shares of Skydance in a research report on Friday, October 16th. Barclays set a $7.00 target price on Skydance and gave the company an "underweight" rating in a research note on Wednesday, October 7th. TD Cowen reduced their price target on Skydance from $6.50 to $4.00 and set a "hold" rating on the stock in a research report on Wednesday, August 5th. Finally, Citizens Jmp reissued a "market outperform" rating and issued a $7.00 price objective on shares of Skydance in a research report on Tuesday, September 22nd. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and nine have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus price target of $5.59.

Key Stories Impacting Skydance

Here are the key news stories impacting Skydance this week:

• Positive Sentiment: An analysis characterized Skydance as a cautious, speculative buy, citing opportunities to improve its theatrical business and potentially separate or monetize assets through future spin-offs. Skydance's Impossible Mission: Theatrical (And Spin-Off) Opportunities Make This A Cautious, Speculative Buy
• Positive Sentiment: Investor and philanthropist Laurene Powell Jobs reportedly invested $250 million in David Ellison’s Skydance, providing financial backing and outside validation for the company’s strategy. Laurene Powell Jobs Invested $250 Million in David Ellison’s Skydance
• Positive Sentiment: Skydance extended Jon Stewart’s contract through 2028, preserving a prominent host and recognizable programming asset for its news and entertainment portfolio. Jon Stewart’s contract was expiring in December. Skydance just locked him through 2028
• Positive Sentiment: Reports that California imposed no limitations on what Skydance can do with HBO and Showtime may give the company greater flexibility to pursue programming, distribution or restructuring initiatives. HBO & Showtime Are Merging & California Put No Limitations On What Skydance Can Do With Them
• Neutral Sentiment: Skydance CEO David Ellison joined the Paley Center’s board of trustees, raising the company’s profile but offering no immediate financial impact. Paley Center Adds Skydance CEO David Ellison to Board of Trustees
• Neutral Sentiment: AEW’s Tony Khan said he has discussed the company with Ellison, but the report describes conversations rather than a transaction, leaving the potential strategic value uncertain. Tony Khan Says He's Had Conversations With Skydance CEO David Ellison About AEW
• Negative Sentiment: Versant CEO Mark Lazarus said acquiring Skydance’s cable networks is probably not a short-term priority, reducing near-term expectations for a sale or cash-generating deal involving those assets. Versant CEO says buying Skydance cable networks is probably not in our short-term future
• Negative Sentiment: Christiane Amanpour’s planned departure from CNN has fueled concerns about talent retention and Skydance’s plans for the network following its acquisition. Christiane Amanpour announces exit from CNN weeks after Skydance acquires network
• Negative Sentiment: Opponents seeking to separate Paramount+ and HBO Max through an injunction introduce regulatory and transaction uncertainty for Skydance’s broader strategic plans. Paramount WBD Merger Opponents Seek Injunction To Separate Streamers Paramount+ & HBO Max

Skydance Stock Up 10.6%

SKYD stock traded up $0.75 during mid-day trading on Wednesday, reaching $7.85. The company had a trading volume of 38,712,851 shares, compared to its average volume of 14,193,899. The firm has a fifty day simple moving average of $5.97 and a 200 day simple moving average of $5.34. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.88 and a current ratio of 1.04. The company has a market capitalization of $8.81 billion, a price-to-earnings ratio of 27.07 and a beta of 1.53. Skydance has a fifty-two week low of $6.61 and a fifty-two week high of $17.16.

Skydance (NYSE:SKYD - Get Free Report) last announced its earnings results on Tuesday, August 4th. The media and entertainment company reported $0.09 earnings per share for the quarter, beating the consensus estimate of $0.08 by $0.01. Skydance had a positive return on equity of 4.11% and a negative net margin of 2.13%. The firm had revenue of $6.91 billion during the quarter. Analysts forecast that Skydance will post -0.37 earnings per share for the current fiscal year.

Skydance Company Profile

Skydance Corporation is a global media and entertainment company formerly known as Paramount Skydance Corporation.

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