Paramount Skydance (NASDAQ:PSKY) Shares Climb 4% - Should You Buy?

Key Points

• Paramount Skydance shares rose 4% to $10.36 in mid-day trading, although volume was 61% below the average. The company recently exceeded quarterly EPS expectations, reporting $0.18 versus the $0.15 consensus on $6.91 billion in revenue.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with nine Sell, five Hold and four Buy ratings, and a consensus price target of $11.17. Targets range from $2.00 to $16.00.
• The company declared a quarterly dividend of $0.05 per share, equivalent to a 2.0% annualized yield. Institutional investors own approximately 73% of the stock, while Paramount Skydance continues integrating its film, television and streaming businesses.

Paramount Skydance Corporation (NASDAQ:PSKY - Get Free Report)'s stock price was up 4% during mid-day trading on Monday. The company traded as high as $10.40 and last traded at $10.36. 4,620,728 shares changed hands during trading, a decline of 61% from the average daily volume of 11,980,374 shares. The stock had previously closed at $9.96.

Analysts Set New Price Targets

Several research firms have issued reports on PSKY. Weiss Ratings raised shares of Paramount Skydance from a "sell (d-)" rating to a "sell (d)" rating in a research report on Thursday, August 6th. Arete Research reiterated a "sell" rating and set a $2.00 target price on shares of Paramount Skydance in a research note on Thursday, July 9th. Morgan Stanley upped their target price on shares of Paramount Skydance from $10.00 to $11.50 and gave the stock an "overweight" rating in a research report on Tuesday, September 22nd. Benchmark reduced their price target on Paramount Skydance from $19.00 to $16.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Finally, Citigroup initiated coverage on shares of Paramount Skydance in a research report on Monday, September 14th. They issued an "outperform" rating for the company. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and nine have given a Sell rating to the company. According to MarketBeat.com, Paramount Skydance has a consensus rating of "Reduce" and a consensus target price of $11.17.

Paramount Skydance Price Performance

The stock has a market cap of $11.46 billion, a price-to-earnings ratio of 35.40, a price-to-earnings-growth ratio of 0.95 and a beta of 1.50. The stock has a fifty day simple moving average of $9.82 and a 200-day simple moving average of $10.04. The company has a current ratio of 1.04, a quick ratio of 0.88 and a debt-to-equity ratio of 1.13.

Paramount Skydance (NASDAQ:PSKY - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.18 EPS for the quarter, topping analysts' consensus estimates of $0.15 by $0.03. The firm had revenue of $6.91 billion during the quarter. Paramount Skydance had a negative net margin of 2.13% and a positive return on equity of 4.11%. As a group, equities research analysts expect that Paramount Skydance Corporation will post 0.56 EPS for the current year.

Paramount Skydance Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.05 per share. The ex-dividend date is Tuesday, September 15th. This represents a $0.20 annualized dividend and a dividend yield of 2.0%. Paramount Skydance's dividend payout ratio is 68.97%.

Institutional Trading of Paramount Skydance

A number of institutional investors have recently added to or reduced their stakes in the stock. Huntington National Bank raised its position in Paramount Skydance by 108.2% during the fourth quarter. Huntington National Bank now owns 2,259 shares of the company's stock valued at $30,000 after purchasing an additional 1,174 shares in the last quarter. Compass Financial Management LLC purchased a new stake in Paramount Skydance during the 2nd quarter valued at $42,000. Global Retirement Partners LLC increased its stake in shares of Paramount Skydance by 357.5% in the fourth quarter. Global Retirement Partners LLC now owns 4,479 shares of the company's stock worth $60,000 after purchasing an additional 3,500 shares in the last quarter. CX Institutional increased its holdings in shares of Paramount Skydance by 38.1% in the second quarter. CX Institutional now owns 4,612 shares of the company's stock worth $45,000 after purchasing an additional 1,273 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. purchased a new position in shares of Paramount Skydance during the 4th quarter worth about $65,000. Hedge funds and other institutional investors own 73.00% of the company's stock.

About Paramount Skydance

Paramount Skydance Corporation NASDAQ: PSKY is a global media and entertainment company formed through the combination of Paramount Global and Skydance Media. The company develops, produces and distributes feature films, television programming and other video content for audiences in the United States and international markets.

Its portfolio includes Paramount Pictures, CBS, Nickelodeon, MTV, Comedy Central, BET, Showtime and other well-known entertainment brands. Paramount Skydance also operates streaming services including Paramount+ and Pluto TV, as well as businesses involved in television broadcasting, news, sports and content licensing.

The company's history includes Paramount Pictures, one of Hollywood's longstanding film studios, and Skydance Media, a production company founded in 2010 by David Ellison.

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