Traders Purchase Large Volume of Call Options on Sphere Entertainment (NYSE:SPHR)

Key Points

• Call-option activity surged: Traders purchased 9,775 Sphere Entertainment call options, roughly 1,615% above the typical volume of 570 contracts.
• Shares fell sharply: SPHR dropped 11.2% to $113.88 on Monday, despite trading volume exceeding its average.
• Analyst sentiment remains broadly positive: The stock has a “Moderate Buy” consensus rating and an average price target of $168.29, while the company recently beat quarterly revenue and adjusted EPS expectations but remains unprofitable.

Sphere Entertainment Co. (NYSE:SPHR - Get Free Report) saw unusually large options trading activity on Monday. Traders acquired 9,775 call options on the stock. This is an increase of approximately 1,615% compared to the typical volume of 570 call options.

Sphere Entertainment Trading Down 11.2%

NYSE:SPHR traded down $14.37 on Monday, hitting $113.88. 840,176 shares of the stock were exchanged, compared to its average volume of 743,573. The stock has a market capitalization of $4.09 billion, a price-to-earnings ratio of -42.41 and a beta of 1.61. Sphere Entertainment has a 52 week low of $57.01 and a 52 week high of $181.63. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.22 and a current ratio of 1.22. The company's 50-day moving average price is $148.31 and its 200 day moving average price is $141.29.

Sphere Entertainment (NYSE:SPHR - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported ($1.07) earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.51) by $0.44. Sphere Entertainment had a negative net margin of 6.19% and a negative return on equity of 1.38%. The company had revenue of $313.64 million for the quarter, compared to analyst estimates of $307.44 million. During the same quarter last year, the firm earned $3.39 EPS. The company's revenue for the quarter was up 10.9% on a year-over-year basis. On average, equities research analysts forecast that Sphere Entertainment will post -2.34 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research analysts have recently commented on SPHR shares. Susquehanna boosted their target price on Sphere Entertainment from $159.00 to $182.00 and gave the stock a "positive" rating in a report on Thursday, June 18th. Benchmark lifted their price objective on Sphere Entertainment from $155.00 to $175.00 and gave the company a "buy" rating in a research report on Thursday, June 18th. Weiss Ratings lowered Sphere Entertainment from a "hold (c)" rating to a "sell (d-)" rating in a research note on Friday. BTIG Research restated a "buy" rating on shares of Sphere Entertainment in a report on Monday, September 28th. Finally, JPMorgan Chase & Co. decreased their target price on Sphere Entertainment from $165.00 to $164.00 and set an "overweight" rating on the stock in a report on Friday, July 31st. Eleven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Sphere Entertainment presently has an average rating of "Moderate Buy" and an average target price of $168.29.

Institutional Trading of Sphere Entertainment

A number of institutional investors have recently bought and sold shares of the business. Polaris Financial Partners bought a new position in shares of Sphere Entertainment in the 3rd quarter worth $43,000. Caitong International Asset Management Co. Ltd increased its holdings in Sphere Entertainment by 93.9% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 570 shares of the company's stock valued at $54,000 after purchasing an additional 276 shares during the last quarter. Parallel Advisors LLC increased its holdings in Sphere Entertainment by 275.0% in the first quarter. Parallel Advisors LLC now owns 465 shares of the company's stock valued at $55,000 after purchasing an additional 341 shares during the last quarter. Vision Retirement LLC lifted its stake in Sphere Entertainment by 38.0% in the first quarter. Vision Retirement LLC now owns 483 shares of the company's stock valued at $57,000 after buying an additional 133 shares during the period. Finally, Rockefeller Capital Management L.P. lifted its stake in Sphere Entertainment by 19.7% in the fourth quarter. Rockefeller Capital Management L.P. now owns 608 shares of the company's stock valued at $58,000 after buying an additional 100 shares during the period. Institutional investors and hedge funds own 92.03% of the company's stock.

About Sphere Entertainment

Sphere Entertainment Co is an entertainment company focused on developing and operating large-scale live experiences, media properties and venues. Its flagship asset is Sphere, a next-generation entertainment venue in Las Vegas featuring a wraparound interior display, immersive audio and experiential programming. Sphere presents concerts, films, sporting events and other productions designed to combine live performance with advanced visual and audio technology.

The company also operates MSG Networks, a regional sports and entertainment media business serving audiences primarily in the New York metropolitan area.

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