Genius Sports (NYSE:GENI) Stock Price Down 6% Following Analyst Downgrade

Key Points

• Genius Sports shares fell 6% to about $5.80 after Wall Street Zen downgraded the stock from “sell” to “strong sell,” with trading volume below its average.
• Despite the downgrade, analyst sentiment remains broadly positive: the stock carries a “Moderate Buy” consensus rating and an average price target of $11.25.
• Insiders sold 850,000 shares worth approximately $5.6 million over the past three months, while the company’s latest quarter showed revenue growth of 64.7% year over year but a larger-than-expected EPS loss.

Genius Sports Limited (NYSE:GENI - Get Free Report)'s share price was down 6% on Wednesday after Wall Street Zen downgraded the stock from a sell rating to a strong sell rating. The stock traded as low as $5.81 and last traded at $5.7970. 3,698,875 shares traded hands during mid-day trading, a decline of 42% from the average session volume of 6,385,310 shares. The stock had previously closed at $6.17.

A number of other equities research analysts have also recently commented on GENI. Wells Fargo & Company reissued an "equal weight" rating and issued a $8.00 target price on shares of Genius Sports in a research note on Friday, August 7th. Roth Capital reaffirmed a "buy" rating and issued a $12.00 price target on shares of Genius Sports in a research report on Friday, August 7th. Citigroup reiterated a "market outperform" rating on shares of Genius Sports in a research note on Tuesday, September 8th. Guggenheim raised their price objective on shares of Genius Sports from $11.00 to $12.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Finally, Weiss Ratings raised shares of Genius Sports from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $11.25.

Insider Transactions at Genius Sports

In other Genius Sports news, CEO Mark Locke sold 477,449 shares of the company's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.58, for a total transaction of $3,141,614.42. Following the transaction, the chief executive officer owned 19,697,767 shares in the company, valued at approximately $129,611,306.86. This represents a 2.37% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Thomas Russell sold 50,000 shares of the business's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $6.51, for a total transaction of $325,500.00. Following the sale, the insider owned 471,467 shares of the company's stock, valued at approximately $3,069,250.17. This represents a 9.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 850,000 shares of company stock valued at $5,582,049. 16.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Genius Sports

Institutional investors have recently bought and sold shares of the business. WINTON GROUP Ltd purchased a new stake in shares of Genius Sports during the second quarter worth about $1,120,000. Corient Private Wealth LP bought a new position in Genius Sports in the 2nd quarter worth approximately $83,000. Odyssean LLC grew its holdings in Genius Sports by 61.3% during the 2nd quarter. Odyssean LLC now owns 230,581 shares of the company's stock valued at $1,397,000 after buying an additional 87,604 shares in the last quarter. Round Rock Advisors LLC bought a new stake in shares of Genius Sports during the second quarter valued at approximately $595,000. Finally, Ancora Advisors LLC lifted its holdings in shares of Genius Sports by 201.3% in the second quarter. Ancora Advisors LLC now owns 370,631 shares of the company's stock worth $2,246,000 after buying an additional 247,610 shares in the last quarter. Hedge funds and other institutional investors own 81.91% of the company's stock.

Genius Sports Stock Performance

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 firm's 50 day simple moving average is $7.18 and its 200 day simple moving average is $5.98. The firm has a market cap of $1.43 billion, a PE ratio of -8.55 and a beta of 1.88.

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

Genius Sports Company Profile

Genius Sports Limited NYSE: GENI is a sports technology and data company that provides official sports data, technology, and digital services to sports leagues, federations, teams, broadcasters, sportsbooks, and brands. Its platforms help clients collect, manage, distribute, and commercialize live sports information across digital channels.

The company's offerings include live scores and statistics, data feeds for sports betting, fan-engagement tools, video streaming and content services, and advertising and sponsorship technology.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.