Paramount Skydance (NASDAQ:PSKY) Stock Price Down 7.5% - Here's Why

Key Points

• Shares fell 7.5% intraday to about $11.10 on Monday, with 6.65 million shares trading—roughly 40% below the stock's average session volume.
• Analyst sentiment is largely negative (1 Buy, 5 Hold, 9 Sell), and the stock carries an average rating of "Strong Sell" with a consensus target price of $13.15.
• Paramount Skydance reported an anomalous EPS of $999.00 that beat estimates while revenue slightly missed and net margin remained negative, and the company declared a quarterly dividend of $0.05 (1.8% yield) with an ex-dividend date of March 16.

Shares of Paramount Skydance Corporation (NASDAQ:PSKY - Get Free Report) fell 7.5% during mid-day trading on Monday . The stock traded as low as $11.10 and last traded at $11.0950. 6,653,217 shares changed hands during trading, a decline of 40% from the average session volume of 11,008,875 shares. The stock had previously closed at $11.99.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on PSKY shares. Wells Fargo & Company initiated coverage on Paramount Skydance in a report on Monday. They set an "underweight" rating and a $10.00 price target for the company. Morgan Stanley lifted their target price on shares of Paramount Skydance from $10.00 to $12.00 and gave the company an "underweight" rating in a report on Tuesday, December 9th. TD Cowen cut their target price on Paramount Skydance from $15.00 to $13.00 and set a "hold" rating on the stock in a research report on Thursday, February 26th. Bank of America raised their price target on Paramount Skydance from $11.00 to $13.00 and gave the stock an "underperform" rating in a research report on Tuesday, November 11th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Paramount Skydance in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating, five have given a Hold rating and nine have assigned a Sell rating to the company. According to data from MarketBeat.com, Paramount Skydance currently has an average rating of "Strong Sell" and a consensus target price of $13.15.

Paramount Skydance Stock Down 6.6%

The business's fifty day moving average is $11.66 and its two-hundred day moving average is $14.51. The stock has a market cap of $12.00 billion, a price-to-earnings ratio of 17.89 and a beta of 1.14. 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 released its earnings results on Wednesday, February 25th. The company reported $999.00 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.02) by $999.02. The company had revenue of $8.15 billion for the quarter, compared to analyst estimates of $8.17 billion. Paramount Skydance had a negative net margin of 2.15% and a positive return on equity of 3.82%.

Paramount Skydance Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Monday, March 16th will be paid a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 1.8%. The ex-dividend date is Monday, March 16th. Paramount Skydance's dividend payout ratio (DPR) is currently 31.75%.

Institutional Investors Weigh In On Paramount Skydance

Large investors have recently modified their holdings of the company. Vanguard Group Inc. acquired a new position in shares of Paramount Skydance in the 3rd quarter valued at $678,726,000. State Street Corp acquired a new position in Paramount Skydance in the third quarter valued at $524,371,000. Invesco Ltd. purchased a new stake in shares of Paramount Skydance in the third quarter valued at about $288,551,000. Barclays PLC acquired a new stake in shares of Paramount Skydance during the third quarter worth about $258,196,000. Finally, Contrarius Group Holdings Ltd acquired a new stake in shares of Paramount Skydance during the third quarter worth about $186,674,000. 73.00% of the stock is owned by institutional investors and hedge funds.

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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