Paramount Global (NASDAQ:PARAA) Sees Large Volume Increase After Strong Earnings

Key Points

• Paramount Global reported a Q2 earnings per share (EPS) of $0.46, exceeding analysts' expectations of $0.44, which led to a significant spike in trading volume by 117% to approximately 64,075 shares.
• The company announced a $0.05 quarterly dividend, reflecting a 1.0% dividend yield, with a negative dividend payout ratio of -2.43%.
• Despite the positive earnings report, Seaport Res Ptn downgraded Paramount Global's shares from a "hold" rating to a "strong sell," indicating potential concerns among analysts regarding the stock's future performance.

Paramount Global (NASDAQ:PARAA - Get Free Report) saw unusually-strong trading volume on Friday following a better than expected earnings announcement. Approximately 64,075 shares were traded during mid-day trading, an increase of 117% from the previous session's volume of 29,460 shares.The stock last traded at $19.93 and had previously closed at $19.09.

The company reported $0.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.44 by $0.02. Paramount Global had a negative net margin of 0.05% and a positive return on equity of 4.51%. The business had revenue of $6.85 billion for the quarter, compared to analyst estimates of $6.88 billion.

Paramount Global Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 1st. Stockholders of record on Monday, June 16th were paid a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Monday, June 16th. Paramount Global's dividend payout ratio (DPR) is currently -666.67%.

Analyst Upgrades and Downgrades

Separately, Seaport Res Ptn cut shares of Paramount Global from a "hold" rating to a "strong sell" rating in a research note on Monday, July 28th.

Hedge Funds Weigh In On Paramount Global

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PARAA. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Paramount Global by 1,090.4% during the first quarter. Northwestern Mutual Wealth Management Co. now owns 1,119 shares of the company's stock worth $25,000 after buying an additional 1,025 shares in the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of Paramount Global by 34.6% during the first quarter. PNC Financial Services Group Inc. now owns 3,366 shares of the company's stock worth $77,000 after purchasing an additional 865 shares during the last quarter. State of Wyoming grew its holdings in shares of Paramount Global by 97.9% during the fourth quarter. State of Wyoming now owns 4,788 shares of the company's stock worth $107,000 after purchasing an additional 2,369 shares during the last quarter. Vanguard Personalized Indexing Management LLC bought a new stake in Paramount Global in the second quarter valued at approximately $213,000. Finally, Ethic Inc. lifted its stake in Paramount Global by 35.7% in the second quarter. Ethic Inc. now owns 12,581 shares of the company's stock valued at $283,000 after buying an additional 3,311 shares during the period. 5.98% of the stock is owned by institutional investors.

Paramount Global Stock Performance

The company has a quick ratio of 1.21, a current ratio of 1.39 and a debt-to-equity ratio of 0.83. The company has a 50 day simple moving average of $22.63 and a 200-day simple moving average of $22.64. The stock has a market capitalization of $12.11 billion, a price-to-earnings ratio of -601.30 and a beta of 1.27.

About Paramount Global

Paramount Global operates as a media, streaming, and entertainment company worldwide. It operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. The TV Media segment operates CBS Television Network, a domestic broadcast television network; CBS Stations, a television station; and international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; domestic premium and basic cable networks, such as Paramount+ with Showtime, MTV, Comedy Central, Paramount Network, The Smithsonian Channel, Nickelodeon, BET Media Group, and CBS Sports Network; and international extensions of these brands.