Traders Purchase Large Volume of Call Options on Lionsgate Studios (NYSE:LION)

Key Points

• Call-option trading surged: Investors bought 14,274 Lionsgate Studios call options on Monday, 552% above the typical daily volume of 2,190.
• Major institutions built positions: BlackRock, Wellington Management, Jefferies and other investors disclosed new stakes in the company.
• Quarterly earnings beat expectations: Lionsgate reported EPS of $0.07 versus analysts’ consensus estimate of a $0.09 loss; analysts’ consensus rating was “Moderate Buy,” with an average price target of $15.16.

Lionsgate Studios Corp. (NYSE:LION - Get Free Report) was the target of unusually large options trading on Monday. Stock investors purchased 14,274 call options on the stock. This is an increase of 552% compared to the typical daily volume of 2,190 call options.

Institutional Trading of Lionsgate Studios

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in shares of Lionsgate Studios in the second quarter worth approximately $251,521,000. Wellington Management Group LLP bought a new stake in shares of Lionsgate Studios during the 2nd quarter worth approximately $113,683,000. Jefferies Financial Group Inc. bought a new stake in shares of Lionsgate Studios during the 2nd quarter worth approximately $88,896,000. Coastal Bridge Advisors LLC purchased a new position in Lionsgate Studios during the 2nd quarter valued at $83,144,000. Finally, Cooper Creek Partners Management LLC purchased a new position in Lionsgate Studios during the 1st quarter valued at $43,715,000.

Lionsgate Studios Stock Performance

LION stock traded down $0.19 during midday trading on Monday, reaching $14.05. 986,766 shares of the company traded hands, compared to its average volume of 3,094,068. Lionsgate Studios has a 52-week low of $6.47 and a 52-week high of $16.70. The business has a 50 day moving average of $11.55 and a 200-day moving average of $11.69. The firm has a market capitalization of $4.18 billion, a price-to-earnings ratio of -175.62 and a beta of 0.59.

Lionsgate Studios (NYSE:LION - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.16. The business had revenue of $668.80 million during the quarter. Lionsgate Studios had a negative return on equity of 4.45% and a negative net margin of 0.66%. Research analysts anticipate that Lionsgate Studios will post 0.03 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on LION shares. Zacks Research lowered shares of Lionsgate Studios from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 22nd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lionsgate Studios in a research note on Thursday, October 15th. Morgan Stanley reaffirmed an "overweight" rating and set a $15.00 price target on shares of Lionsgate Studios in a research note on Thursday, August 6th. Wall Street Zen lowered shares of Lionsgate Studios from a "buy" rating to a "hold" rating in a research report on Sunday, November 1st. Finally, Seaport Research Partners reissued a "buy" rating and issued a $17.00 price objective on shares of Lionsgate Studios in a research note on Friday, August 7th. Eight investment analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $15.16.

Lionsgate Studios Company Profile

Lionsgate Studios is a film and television production and distribution company whose operations include Lionsgate's motion picture and television studio businesses. Its activities span developing, producing, marketing and distributing films and television programs, as well as licensing content to platforms and broadcasters.

The company's portfolio includes well-known franchises such as The Hunger Games, John Wick and Saw, along with a broad library of film and television titles.

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