Paramount Skydance (NASDAQ:PSKY) Shares Down 5.5% After Analyst Downgrade

Key Points

• Shares fell 5.5% after Wells Fargo cut its price target to $7 and kept an underweight rating; the stock traded as low as $10.17 and midday volume was ~2.65M versus an average of 11.48M (a ~77% decline).
• Paramount Skydance beat Q1 expectations with $0.23 EPS (vs. $0.15) and $7.35B revenue, reaffirmed ~ $30B FY26 revenue guidance, and cited streaming growth plus cost cuts that improved margins and support a unified streaming platform by mid‑2026.
• Analyst sentiment is mixed to negative — two Buys, five Holds and eight Sells, with a MarketBeat consensus of Reduce and an average price target of $12.77 after several firms trimmed targets (while Morgan Stanley raised its rating to Overweight).

Paramount Skydance Corporation (NASDAQ:PSKY - Get Free Report) traded down 5.5% on Tuesday after Wells Fargo & Company lowered their price target on the stock from $8.00 to $7.00. Wells Fargo & Company currently has an underweight rating on the stock. Paramount Skydance traded as low as $10.17 and last traded at $10.5230. 2,646,027 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 11,480,847 shares. The stock had previously closed at $11.13.

PSKY has been the topic of a number of other reports. Bank of America decreased their target price on Paramount Skydance from $13.00 to $11.00 and set an "underperform" rating on the stock in a research note on Tuesday, March 10th. Weiss Ratings restated a "sell (d-)" rating on shares of Paramount Skydance in a research note on Friday, March 27th. Zacks Research upgraded Paramount Skydance from a "strong sell" rating to a "hold" rating in a research note on Friday, February 6th. Morgan Stanley upgraded Paramount Skydance from an "underweight" rating to an "overweight" rating and upped their target price for the stock from $11.00 to $14.00 in a research note on Thursday. Finally, Guggenheim decreased their target price on Paramount Skydance from $14.00 to $12.00 and set a "neutral" rating on the stock in a research note on Tuesday. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and eight have assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $12.77.

Key Headlines Impacting Paramount Skydance

Here are the key news stories impacting Paramount Skydance this week:

• Positive Sentiment: Q1 results beat expectations — PSKY reported $0.23 EPS vs. $0.15 consensus and ~$7.35B revenue, driven by streaming and studio strength; management reaffirmed ~$30B FY26 revenue guidance, supporting the rally. Paramount Stock Edges Higher On Q1 Double Beat
• Positive Sentiment: Streaming growth and cost cuts boosted margins — management cited Paramount+ gains and company-wide cost-cutting that lifted pre-tax profit, indicating operating leverage if streaming momentum continues. Paramount Skydance first-quarter profit benefits from cost-cutting
• Positive Sentiment: M&A and product roadmap progress — company says the Warner Bros. Discovery (WBD) merger is on track and aims for a unified streaming platform by mid‑2026, which could drive longer‑term scale and ad revenue recovery in H2. Paramount targets unified streaming platform by mid-2026
• Neutral Sentiment: Content-licensing strategy maintained — management says it will continue licensing select marquee content to third parties to attract talent and monetize IP, a strategic trade-off between direct revenue and broader content economics. Paramount Will Keep Licensing Some Content To Third Parties
• Neutral Sentiment: Subscriber detail is mixed — total streaming revenue grew, but some reports note Paramount+ subscriber gains slightly missed expectations; this tempers how quickly advertising and ARPU gains may materialize. Paramount beats earnings expectations with WBD deal on the horizon
• Negative Sentiment: Guggenheim cut its price target to $12 and set a "neutral" rating — the downgrade reduces analyst upside (Guggenheim's $12 target implies limited room above current levels) and could cap further near‑term gains. Guggenheim lowers PSKY price target

Hedge Funds Weigh In On Paramount Skydance

Several institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of Paramount Skydance by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 36,006,077 shares of the company's stock valued at $482,481,000 after purchasing an additional 132,613 shares during the last quarter. State Street Corp bought a new position in shares of Paramount Skydance during the 3rd quarter valued at about $524,371,000. Invesco Ltd. increased its position in shares of Paramount Skydance by 1.0% during the 4th quarter. Invesco Ltd. now owns 15,406,791 shares of the company's stock valued at $206,451,000 after purchasing an additional 155,679 shares during the last quarter. Contrarius Group Holdings Ltd increased its position in shares of Paramount Skydance by 52.9% during the 4th quarter. Contrarius Group Holdings Ltd now owns 15,088,097 shares of the company's stock valued at $202,180,000 after purchasing an additional 5,221,622 shares during the last quarter. Finally, Barclays PLC bought a new position in shares of Paramount Skydance during the 3rd quarter valued at about $258,196,000. 73.00% of the stock is currently owned by institutional investors.

Paramount Skydance Price Performance

The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.12 and a current ratio of 1.26. The stock has a market capitalization of $11.83 billion, a P/E ratio of 16.89, a price-to-earnings-growth ratio of 0.56 and a beta of 1.43. The firm has a 50-day moving average price of $10.51 and a 200 day moving average price of $12.58.

Paramount Skydance (NASDAQ:PSKY - Get Free Report) last announced its quarterly earnings data on Monday, May 4th. The company reported $0.23 EPS for the quarter, beating the consensus estimate of $0.15 by $0.08. The firm had revenue of $7.35 billion for the quarter. Paramount Skydance had a positive return on equity of 3.82% and a negative net margin of 2.15%.During the same quarter last year, the company posted $0.22 earnings per share. On average, analysts expect that Paramount Skydance Corporation will post 0.79 EPS for the current year.

Paramount Skydance Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Monday, June 15th will be issued a dividend of $0.05 per share. The ex-dividend date is Monday, June 15th. This represents a $0.20 annualized dividend and a yield of 1.9%. Paramount Skydance's dividend payout ratio is currently 31.75%.

About Paramount Skydance

Paramount Skydance Media Group Nasdaq: PSKY is a media and entertainment company created through the proposed combination of Paramount Global’s filmed entertainment and streaming operations with Skydance Media, a privately held content studio. The combined business will encompass the development, production and distribution of feature films, television programming and digital content, drawing on a library of legacy Paramount Pictures franchises alongside Skydance’s blockbuster tentpoles and animation slate.

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