Lionsgate Studios (NYSE:LION) Shares Gap Down - Here's Why

Key Points

• Lionsgate Studios shares fell 3.2%, opening at $10.59 versus the prior close of $10.98, and last traded at $10.75.
• Analyst sentiment remains generally positive: eight analysts rate the stock a Buy, with a consensus rating of “Moderate Buy” and a $15.16 average price target, despite some Hold and Sell ratings.
• The company beat quarterly expectations, reporting $0.06 earnings per share versus estimates of a $0.08 loss and revenue of $776.6 million against a $703.1 million forecast.

Lionsgate Studios Corp. (NYSE:LION - Get Free Report) gapped down before the market opened on Friday. The stock had previously closed at $10.98, but opened at $10.59. Lionsgate Studios shares last traded at $10.75, with a volume of 379,798 shares changing hands.

Analyst Ratings Changes

Several research analysts have weighed in on LION shares. Wall Street Zen upgraded shares of Lionsgate Studios from a "hold" rating to a "buy" rating in a research report on Saturday, September 19th. Benchmark boosted their price objective on shares of Lionsgate Studios from $15.00 to $17.00 and gave the company a "buy" rating in a research report on Thursday, June 11th. Morgan Stanley restated an "overweight" rating and issued a $15.00 price objective on shares of Lionsgate Studios in a research note on Thursday, August 6th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lionsgate Studios in a report on Friday, July 17th. Finally, B. Riley Financial lowered their target price on Lionsgate Studios from $17.00 to $16.00 and set a "neutral" rating on the stock in a research report on Monday, August 10th. Eight analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Lionsgate Studios presently has a consensus rating of "Moderate Buy" and a consensus price target of $15.16.

Lionsgate Studios Stock Down 3.2%

The stock's 50 day moving average price is $12.03 and its 200-day moving average price is $12.32. The stock has a market capitalization of $3.16 billion, a PE ratio of -25.31 and a beta of 0.66.

Lionsgate Studios (NYSE:LION - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, beating analysts' consensus estimates of ($0.08) by $0.14. The firm had revenue of $776.60 million for the quarter, compared to analysts' expectations of $703.10 million. On average, analysts forecast that Lionsgate Studios Corp. will post 0.04 earnings per share for the current year.

Hedge Funds Weigh In On Lionsgate Studios

Large investors have recently made changes to their positions in the business. Integrated Wealth Concepts LLC bought a new position in shares of Lionsgate Studios in the second quarter worth about $118,000. Baird Financial Group Inc. bought a new stake in Lionsgate Studios during the 2nd quarter valued at approximately $250,000. Nykredit A S bought a new stake in Lionsgate Studios during the 2nd quarter valued at approximately $49,000. Amundi purchased a new position in Lionsgate Studios in the 2nd quarter worth approximately $169,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Lionsgate Studios in the 2nd quarter worth approximately $205,000.

About Lionsgate Studios

Lionsgate Studios Corp. NYSE: LION is an entertainment company focused on the development, production and distribution of motion pictures and television programming. Its studio operations include theatrical films, television series, home entertainment and digital distribution, as well as the licensing and monetization of a broad content library.

The company owns or distributes well-known film franchises such as The Hunger Games, John Wick, Saw, Twilight and Now You See Me.

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