Genius Sports (NYSE:GENI) Shares Down 18.8% After Earnings Miss

Key Points

• Genius Sports shares fell 18.8% after its quarterly loss of $0.06 per share missed analyst expectations of $0.01 profit; trading volume was 42% above average.
• Revenue beat estimates, reaching $269.86 million versus $261.13 million expected, and rose 62.3% year over year. The company nevertheless reported a negative net margin of 22.99%.
• Analysts’ consensus rating remained “Moderate Buy,” with an average price target of $11.03, while company insiders sold 850,000 shares worth about $5.6 million over the last quarter.

Shares of Genius Sports Limited (NYSE:GENI - Get Free Report) dropped 18.8% during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $5.74 and last traded at $5.6950. Approximately 9,165,446 shares changed hands during mid-day trading, an increase of 42% from the average session volume of 6,444,464 shares. The stock had previously closed at $7.01.

The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of $0.01 by ($0.07). The business had revenue of $269.86 million during the quarter, compared to analysts' expectations of $261.13 million. Genius Sports had a negative net margin of 22.99% and a negative return on equity of 23.83%. The firm's quarterly revenue was up 62.3% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.11) earnings per share.

Analyst Ratings Changes

Several analysts have issued reports on the company. Needham & Company LLC upped their price objective on Genius Sports from $10.00 to $12.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Wells Fargo & Company downgraded Genius Sports from an "overweight" rating to an "equal weight" rating and set a $8.00 target price for the company. in a report on Friday, August 7th. Citigroup reiterated a "market outperform" rating on shares of Genius Sports in a research report on Thursday, October 8th. Roth Capital reissued a "buy" rating and issued a $12.00 price target on shares of Genius Sports in a research report on Friday, August 7th. Finally, BTIG Research raised their price objective on shares of Genius Sports from $9.00 to $10.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Genius Sports presently has an average rating of "Moderate Buy" and a consensus target price of $11.03.

Insider Transactions at Genius Sports

In related news, CEO Mark Locke sold 477,449 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.58, for a total transaction of $3,141,614.42. Following the completion of the sale, the chief executive officer owned 19,697,767 shares in the company, valued at $129,611,306.86. This represents a 2.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Thomas Russell sold 50,000 shares of the firm'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 sale, the insider owned 471,467 shares in the company, valued at approximately $3,069,250.17. The trade was a 9.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 850,000 shares of company stock worth $5,582,049 over the last quarter. 16.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Genius Sports

Large investors have recently bought and sold shares of the stock. Kornitzer Capital Management Inc. KS acquired a new stake in shares of Genius Sports during the 3rd quarter worth about $73,000. Kestra Advisory Services LLC bought a new position in Genius Sports during the 3rd quarter valued at about $121,000. Commonwealth Equity Services LLC lifted its holdings in Genius Sports by 81.0% during the 3rd quarter. Commonwealth Equity Services LLC now owns 19,889 shares of the company's stock valued at $114,000 after purchasing an additional 8,898 shares during the last quarter. Chicago Partners Investment Group LLC boosted its position in Genius Sports by 26.4% in the third quarter. Chicago Partners Investment Group LLC now owns 70,420 shares of the company's stock valued at $446,000 after buying an additional 14,722 shares in the last quarter. Finally, Integrity Alliance LLC. acquired a new position in Genius Sports in the third quarter valued at about $141,000. 81.91% of the stock is currently owned by institutional investors and hedge funds.

Genius Sports Stock Performance

The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 1.10. The stock has a market capitalization of $1.39 billion, a price-to-earnings ratio of -8.37 and a beta of 1.95. The stock's 50-day simple moving average is $6.60 and its 200 day simple moving average is $6.25.

Genius Sports Company Profile

Genius Sports Limited NYSE: GENI is a sports technology and data company that provides official sports data, technology, and digital media solutions. Its platform helps sports organizations collect, manage, and distribute live game data while supporting fan engagement and commercial activities.

The company supplies real-time data and related products to sportsbooks, media companies, sports leagues, teams, and brands. Its services include live statistics, betting data and trading solutions, streaming and video content, digital marketing, sponsorship activation, and tools designed to connect sports audiences with content and advertising.

Genius Sports serves customers across international sports markets, including North America, Europe, and other regions.

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