Paramount Skydance (NASDAQ:PSKY) Shares Up 7.8% - Should You Buy?

Key Points

• Shares jumped 7.8% to $11.03 on Friday after trading as high as $11.09, but volume was only 1.95 million shares—about an 83% decline from the average session volume.
• Analyst sentiment is mixed-to-negative: two Buys, five Holds and eight Sells, with an average rating of "Reduce" and an average price target of $13, though Morgan Stanley upgraded to Overweight and raised its target to $14.
• Paramount Skydance missed the quarter with a loss of $0.12 EPS vs. a $0.02 expected and revenue of $8.15B (vs. $8.17B est.); the company has a $12.35B market cap, PE of 17.64, and announced a quarterly dividend of $0.05 (≈1.8% yield).

Paramount Skydance Corporation (NASDAQ:PSKY - Get Free Report) shares shot up 7.8% on Friday . The stock traded as high as $11.09 and last traded at $11.0340. 1,953,608 shares changed hands during trading, a decline of 83% from the average session volume of 11,463,934 shares. The stock had previously closed at $10.24.

Analysts Set New Price Targets

Several brokerages have recently weighed in on PSKY. TD Cowen decreased their target price on shares of Paramount Skydance from $15.00 to $13.00 and set a "hold" rating for the company in a research note on Thursday, February 26th. Wells Fargo & Company decreased their target price on shares of Paramount Skydance from $10.00 to $8.00 and set an "underweight" rating for the company in a research note on Thursday, April 2nd. Weiss Ratings reissued a "sell (d-)" rating on shares of Paramount Skydance in a report on Friday, March 27th. Bank of America cut their price target on shares of Paramount Skydance from $13.00 to $11.00 and set an "underperform" rating for the company in a report on Tuesday, March 10th. Finally, Morgan Stanley raised shares of Paramount Skydance from an "underweight" rating to an "overweight" rating and increased their price target for the stock from $11.00 to $14.00 in a report on Thursday. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and eight have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $13.00.

Paramount Skydance Stock Up 8.4%

The stock has a market capitalization of $12.35 billion, a PE ratio of 17.64, a PEG ratio of 0.52 and a beta of 1.37. The firm's fifty day moving average is $10.51 and its 200-day moving average is $12.65. The company has a quick ratio of 1.12, a current ratio of 1.26 and a debt-to-equity ratio of 1.03.

Paramount Skydance (NASDAQ:PSKY - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The company reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.10). The firm had revenue of $8.15 billion for the quarter, compared to analysts' expectations of $8.17 billion. Paramount Skydance had a positive return on equity of 3.82% and a negative net margin of 2.15%. On average, equities research analysts predict that Paramount Skydance Corporation will post 0.79 earnings per share for the current year.

Paramount Skydance Dividend Announcement

The company also recently declared 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. This represents a $0.20 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Monday, June 15th. Paramount Skydance's dividend payout ratio is currently 31.75%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Zurcher Kantonalbank Zurich Cantonalbank grew its stake in Paramount Skydance by 0.6% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 140,776 shares of the company's stock worth $1,886,000 after acquiring an additional 900 shares during the period. CWM LLC grew its stake in Paramount Skydance by 20.3% in the 4th quarter. CWM LLC now owns 5,759 shares of the company's stock worth $77,000 after acquiring an additional 970 shares during the period. Mather Group LLC. grew its stake in Paramount Skydance by 6.3% in the 4th quarter. Mather Group LLC. now owns 17,137 shares of the company's stock worth $230,000 after acquiring an additional 1,009 shares during the period. LSV Asset Management grew its stake in Paramount Skydance by 0.6% in the 4th quarter. LSV Asset Management now owns 188,868 shares of the company's stock worth $2,531,000 after acquiring an additional 1,116 shares during the period. Finally, Huntington National Bank grew its stake in Paramount Skydance by 108.2% in the 4th quarter. Huntington National Bank now owns 2,259 shares of the company's stock worth $30,000 after acquiring an additional 1,174 shares during the period. 73.00% of the stock is owned by hedge funds and other institutional investors.

Paramount Skydance Company Profile

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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