Genius Sports (NYSE:GENI) Shares Gap Up - Still a Buy?

Key Points

• Genius Sports shares opened 4.7% higher, rising from $5.99 to $6.27 and later trading near $6.36. The stock remains below its 50-day moving average of $7.12 but is near its 200-day average of $6.00.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $11.25. However, some firms recently downgraded the stock to “strong sell.”
• The company delivered strong revenue growth of 64.7% year over year to $195.5 million, exceeding estimates, but missed EPS expectations and remains unprofitable. Insider selling has also been notable, with executives and other insiders selling 850,000 shares worth about $5.6 million over three months.

Genius Sports Limited (NYSE:GENI - Get Free Report)'s stock price gapped up before the market opened on Tuesday. The stock had previously closed at $5.99, but opened at $6.27. Genius Sports shares last traded at $6.3550, with a volume of 305,945 shares traded.

Analyst Ratings Changes

GENI has been the subject of a number of research analyst reports. BTIG Research upped their price objective on Genius Sports from $9.00 to $10.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Guggenheim lifted their price objective on Genius Sports from $11.00 to $12.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Oppenheimer boosted their target price on Genius Sports from $10.00 to $12.00 and gave the stock an "outperform" rating in a report on Friday, August 7th. Wall Street Zen cut shares of Genius Sports from a "sell" rating to a "strong sell" rating in a research report on Tuesday, September 29th. Finally, Zacks Research downgraded Genius Sports from a "hold" rating to a "strong sell" rating in a report on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $11.25.

Genius Sports Trading Up 4.5%

The company has a fifty day simple moving average of $7.12 and a 200-day simple moving average of $6.00. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 1.10. The stock has a market cap of $1.54 billion, a price-to-earnings ratio of -9.20 and a beta of 1.91.

Genius Sports (NYSE:GENI - Get Free Report) last announced its earnings results on Friday, August 7th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.21). Genius Sports had a negative return on equity of 23.83% and a negative net margin of 22.99%.The firm had revenue of $195.50 million during the quarter, compared to analyst estimates of $184.43 million. During the same quarter in the previous year, the business earned ($0.21) earnings per share. The business's quarterly revenue was up 64.7% compared to the same quarter last year. On average, research analysts forecast that Genius Sports Limited will post -0.35 earnings per share for the current fiscal year.

Insider Buying and Selling at Genius Sports

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

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in GENI. First Dallas Securities Inc. lifted its position in shares of Genius Sports by 3.0% during the 4th quarter. First Dallas Securities Inc. now owns 68,500 shares of the company's stock worth $755,000 after buying an additional 2,000 shares during the last quarter. Nixon Capital LLC grew its position in Genius Sports by 0.3% in the fourth quarter. Nixon Capital LLC now owns 840,660 shares of the company's stock valued at $9,264,000 after acquiring an additional 2,533 shares during the last quarter. Principal Financial Group Inc. raised its stake in Genius Sports by 24.1% during the first quarter. Principal Financial Group Inc. now owns 16,038 shares of the company's stock worth $71,000 after acquiring an additional 3,114 shares in the last quarter. Pacer Advisors Inc. raised its stake in Genius Sports by 29.1% during the first quarter. Pacer Advisors Inc. now owns 15,270 shares of the company's stock worth $68,000 after acquiring an additional 3,440 shares in the last quarter. Finally, Infrastructure Capital Advisors LLC lifted its holdings in shares of Genius Sports by 15.6% in the first quarter. Infrastructure Capital Advisors LLC now owns 26,000 shares of the company's stock worth $115,000 after acquiring an additional 3,500 shares during the last quarter. Institutional investors and hedge funds own 81.91% of the company's stock.

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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