Skydance (NYSE:SKYD) Stock Price Down 9.5% Following Analyst Downgrade

Key Points

• Skydance shares fell 9.5% to $7.87 after Citizens JMP cut its price target from $14 to $13, while keeping an outperform rating. Trading volume was about 60% below its average.
• Skydance reported quarterly adjusted earnings of $0.45 per share, beating the $0.18 consensus, while revenue of $7.03 billion came in slightly below estimates.
• The company is targeting more than $6 billion in cost savings over three years and plans to bundle Paramount+ with HBO Max, but its roughly $87 billion debt burden and a reported potential $200 million fourth-quarter profit hit from Warner Bros.’ film slate pose risks.

Skydance Corporation (NYSE:SKYD - Get Free Report)'s stock price fell 9.5% on Tuesday after Citizens Jmp lowered their price target on the stock from $14.00 to $13.00. Citizens Jmp currently has a market outperform rating on the stock. Skydance traded as low as $7.75 and last traded at $7.87. 5,782,452 shares traded hands during trading, a decline of 60% from the average daily volume of 14,567,237 shares. The stock had previously closed at $8.70.

A number of other research analysts have also recently issued reports on the stock. Stephens upgraded shares of Skydance from a "buy" rating to an "overweight" rating in a report on Friday, October 23rd. Cantor Fitzgerald started coverage on shares of Skydance in a research report on Friday, October 23rd. They issued an "overweight" rating on the stock. Citigroup started coverage on Skydance in a research note on Monday, October 26th. They set a "buy" rating and a $10.00 price target for the company. Barclays set a $7.00 price target on Skydance and gave the company an "underweight" rating in a research note on Wednesday, October 7th. Finally, TD Cowen decreased their price objective on Skydance from $6.50 to $4.00 and set a "hold" rating for the company in a report on Wednesday, August 5th. Ten research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and seven have issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $6.42.

Key Headlines Impacting Skydance

Here are the key news stories impacting Skydance this week:

• Positive Sentiment: Skydance reported third-quarter adjusted earnings of $0.45 per share, ahead of the $0.18 consensus estimate. Revenue of $7.03 billion was slightly below expectations of $7.07 billion. The results covered the period before the Warner Bros. Discovery acquisition closed. Earnings results
• Positive Sentiment: Management outlined more than $6 billion in targeted cost savings over three years through consolidating operations, reducing technology costs, and eliminating management layers. If achieved, the cuts could help offset integration costs and support profitability. Cost savings plan
• Positive Sentiment: The company plans to bundle Paramount+ with HBO Max early next year, aiming to strengthen its streaming offering. Paramount+ revenue rose 21% in the third quarter, providing a recent growth signal for the business. Streaming bundle plans
• Neutral Sentiment: Skydance named Marvel veteran Jeremy Latcham to lead DC Studios after James Gunn and Peter Safran depart. A leadership change could reshape the studio’s creative direction; reports also cite tensions between Gunn and Skydance executives, making the transition a potential execution risk. DC Studios leadership change
• Negative Sentiment: Reports say the Warner Bros. film slate could reduce fourth-quarter profit by about $200 million. Skydance also faces an approximately $87 billion debt burden following the deal, raising the importance of successful cost cuts and growth initiatives. Warner slate and profit impact Debt burden

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Integrated Wealth Concepts LLC purchased a new stake in shares of Skydance in the 2nd quarter valued at about $75,000. IFP Advisors Inc boosted its position in shares of Skydance by 11.6% during the 2nd quarter. IFP Advisors Inc now owns 50,934 shares of the media and entertainment company's stock valued at $502,000 after acquiring an additional 5,294 shares during the last quarter. Arizona State Retirement System grew its holdings in shares of Skydance by 1.2% during the second quarter. Arizona State Retirement System now owns 89,455 shares of the media and entertainment company's stock worth $882,000 after purchasing an additional 1,077 shares in the last quarter. Nykredit A S purchased a new stake in Skydance in the second quarter valued at approximately $150,000. Finally, Brown Financial Advisors bought a new stake in Skydance during the second quarter valued at approximately $175,000. 73.00% of the stock is currently owned by hedge funds and other institutional investors.

Skydance Trading Down 8.9%

The firm has a market capitalization of $8.90 billion, a P/E ratio of 27.34 and a beta of 1.64. The company has a quick ratio of 0.88, a current ratio of 1.04 and a debt-to-equity ratio of 1.13. The firm's 50-day simple moving average is $6.74 and its 200-day simple moving average is $5.52.

Skydance (NYSE:SKYD - Get Free Report) last released its quarterly earnings results on Monday, November 9th. The media and entertainment company reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.18 by $0.27. The business had revenue of $7.03 billion for the quarter, compared to the consensus estimate of $7.07 billion. Skydance had a positive return on equity of 4.11% and a negative net margin of 2.13%. Analysts anticipate that Skydance Corporation will post -0.08 EPS for the current year.

About Skydance

Skydance Corporation is a global media and entertainment company formerly known as Paramount Skydance Corporation.

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.