Genius Sports (NYSE:GENI) Shares Climb 7.4% - Should You Buy?

Key Points

• Genius Sports shares rose 7.4% to approximately $6.58, although trading volume was significantly below the stock’s average.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $11.25—well above the recent trading price.
• The company’s revenue increased 64.7% year over year to $195.5 million, but it missed earnings expectations and remained unprofitable; insiders have also sold 850,000 shares over the past three months.

Genius Sports Limited (NYSE:GENI - Get Free Report)'s share price traded up 7.4% on Thursday. The company traded as high as $6.47 and last traded at $6.5840. Approximately 766,196 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 6,429,810 shares. The stock had previously closed at $6.13.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on GENI. Oppenheimer increased their price target on Genius Sports from $10.00 to $12.00 and gave the company an "outperform" rating in a research note on Friday, August 7th. JPMorgan Chase & Co. initiated coverage on shares of Genius Sports in a research note on Friday, September 25th. They issued an "overweight" rating and a $8.00 price objective on the stock. Zacks Research raised shares of Genius Sports from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 6th. BTIG Research lifted their price objective on Genius Sports from $9.00 to $10.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Finally, Roth Capital reaffirmed a "buy" rating and set a $12.00 target price on shares of Genius Sports in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $11.25.

Genius Sports Stock Performance

The firm has a market cap of $1.59 billion, a P/E ratio of -9.52 and a beta of 1.91. The company's 50-day moving average is $6.98 and its two-hundred day moving average is $6.09. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 1.10.

Genius Sports (NYSE:GENI - Get Free Report) last issued its quarterly earnings data on Friday, August 7th. The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.21). Genius Sports had a negative net margin of 22.99% and a negative return on equity of 23.83%. The company had revenue of $195.50 million for the quarter, compared to the consensus estimate of $184.43 million. During the same quarter last year, the business posted ($0.21) earnings per share. Genius Sports's revenue was up 64.7% on a year-over-year basis. As a group, equities analysts predict that Genius Sports Limited will post -0.35 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Mark Locke sold 50,000 shares of the company's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $6.54, for a total value of $327,000.00. Following the completion of the sale, the chief executive officer directly owned 19,375,216 shares in the company, valued at $126,713,912.64. This represents a 0.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Thomas Russell sold 50,000 shares of the business's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $6.51, for a total transaction of $325,500.00. Following the completion of the transaction, the insider directly owned 471,467 shares in the company, valued at $3,069,250.17. This trade represents a 9.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 850,000 shares of company stock worth $5,582,049. Insiders own 16.60% of the company's stock.

Hedge Funds Weigh In On Genius Sports

A number of institutional investors have recently modified their holdings of the stock. Parallel Advisors LLC purchased a new position in Genius Sports during the 1st quarter valued at about $25,000. Lexington Hill Partners LLC purchased a new position in Genius Sports in the second quarter worth approximately $64,000. Corient Private Wealth LP acquired a new stake in shares of Genius Sports in the 2nd quarter valued at $83,000. Baer Investment Advisory LLC purchased a new stake in shares of Genius Sports during the 1st quarter worth $61,000. Finally, Park National Corp OH purchased a new stake in shares of Genius Sports during the 3rd quarter worth $84,000. 81.91% of the stock is owned by hedge funds and other institutional investors.

Genius Sports Company Profile

Genius Sports Limited is a sports data, technology and media company that provides services to sports leagues, federations, teams, betting operators, broadcasters and brands. The company collects, manages and distributes official sports data, including live scores, statistics, schedules and related content, to support digital products, broadcasts and sports betting applications.

Its offerings include live data and odds solutions for betting operators, sports video and streaming services, fan-engagement tools, digital marketing and advertising technology, and sports integrity services designed to help organizations monitor competitions and protect against certain forms of betting-related misconduct.

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