Sphere Entertainment (NYSE:SPHR) Shares Gap Down Following Analyst Downgrade

Key Points

• Sphere Entertainment shares fell sharply after Craig Hallum downgraded the stock from Buy to Hold, opening at $120.99 versus a prior close of $128.25 and later trading near $113.49. Craig Hallum set a $132 price target.
• Despite the downgrade, analyst sentiment remains broadly positive: 11 analysts rate SPHR a Buy, two rate it Hold and one rates it Sell, producing a “Moderate Buy” consensus and a $168.29 average price target.
• The company’s latest quarter exceeded expectations, with revenue up 10.9% year over year to $313.64 million and an adjusted loss of $1.07 per share versus the expected $1.51 loss. Institutional investors own approximately 92.03% of the stock.

Sphere Entertainment Co. (NYSE:SPHR - Get Free Report) shares gapped down before the market opened on Monday after Craig Hallum downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $128.25, but opened at $120.99. Craig Hallum now has a $132.00 price target on the stock. Sphere Entertainment shares last traded at $113.4850, with a volume of 446,378 shares traded.

A number of other research firms also recently issued reports on SPHR. Benchmark boosted their price objective on shares of Sphere Entertainment from $155.00 to $175.00 and gave the company a "buy" rating in a report on Thursday, June 18th. Citigroup reiterated a "market outperform" rating on shares of Sphere Entertainment in a research report on Tuesday, September 1st. Piper Sandler began coverage on Sphere Entertainment in a research note on Thursday, August 20th. They issued an "overweight" rating and a $185.00 price target for the company. Seaport Research Partners reiterated a "buy" rating and issued a $191.00 price target on shares of Sphere Entertainment in a research note on Thursday, August 13th. Finally, BTIG Research reissued a "buy" rating on shares of Sphere Entertainment in a research report on Monday, September 28th. Eleven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $168.29.

Institutional Trading of Sphere Entertainment

Hedge funds and other institutional investors have recently made changes to their positions in the company. Polaris Financial Partners acquired a new stake in Sphere Entertainment during the 3rd quarter worth approximately $43,000. Sequoia Financial Advisors LLC bought a new position in Sphere Entertainment during the 2nd quarter worth $207,000. Integrated Wealth Concepts LLC acquired a new position in Sphere Entertainment during the 2nd quarter worth about $255,000. Arizona State Retirement System lifted its holdings in Sphere Entertainment by 1.1% during the 2nd quarter. Arizona State Retirement System now owns 7,111 shares of the company's stock worth $1,230,000 after buying an additional 75 shares during the period. Finally, Nykredit A S bought a new stake in shares of Sphere Entertainment in the 2nd quarter valued at about $79,000. 92.03% of the stock is currently owned by institutional investors.

Sphere Entertainment Price Performance

The business's 50-day simple moving average is $148.31 and its two-hundred day simple moving average is $141.29. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.32. The firm has a market cap of $4.09 billion, a price-to-earnings ratio of -42.68 and a beta of 1.61.

Sphere Entertainment (NYSE:SPHR - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported ($1.07) earnings per share for the quarter, topping the consensus estimate of ($1.51) by $0.44. Sphere Entertainment had a negative net margin of 6.19% and a negative return on equity of 1.38%. The company had revenue of $313.64 million during the quarter, compared to analysts' expectations of $307.44 million. During the same period in the prior year, the company posted $3.39 earnings per share. Sphere Entertainment's revenue for the quarter was up 10.9% compared to the same quarter last year. As a group, research analysts expect that Sphere Entertainment Co. will post -2.34 EPS for the current fiscal year.

About Sphere Entertainment

Sphere Entertainment Co is an entertainment company focused on developing and operating large-scale live experiences, media properties and venues. Its flagship asset is Sphere, a next-generation entertainment venue in Las Vegas featuring a wraparound interior display, immersive audio and experiential programming. Sphere presents concerts, films, sporting events and other productions designed to combine live performance with advanced visual and audio technology.

The company also operates MSG Networks, a regional sports and entertainment media business serving audiences primarily in the New York metropolitan area.

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