Starz Entertainment (NASDAQ:STRZ) Shares Down 5.8% - Here's Why

Key Points

• Starz shares fell 5.8% to $20.91, with trading volume about 29% above the average session volume.
• The decline followed a severe quarterly earnings miss: Starz reported a loss of $11.27 per share versus the $0.59 loss analysts expected, alongside a negative net margin of 33.98%.
• Analyst sentiment remains mixed, though the consensus is a “Moderate Buy” with an average price target of $32.71; recent ratings ranged from “sell” to “outperform.”

Starz Entertainment Corp. (NASDAQ:STRZ - Get Free Report)'s share price traded down 5.8% during trading on Monday. The company traded as low as $19.70 and last traded at $20.91. 379,875 shares were traded during mid-day trading, an increase of 29% from the average session volume of 294,700 shares. The stock had previously closed at $22.19.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Wall Street Zen cut shares of Starz Entertainment from a "hold" rating to a "sell" rating in a report on Saturday, July 25th. Citigroup assumed coverage on shares of Starz Entertainment in a research report on Monday, September 14th. They issued an "outperform" rating on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Starz Entertainment in a report on Wednesday, July 29th. Citizens Jmp started coverage on shares of Starz Entertainment in a report on Monday, September 14th. They issued a "market outperform" rating and a $40.00 price target for the company. Finally, B. Riley Financial began coverage on shares of Starz Entertainment in a research report on Tuesday, June 30th. They set a "buy" rating and a $45.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $32.71.

Starz Entertainment Price Performance

The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 2.05. The business has a 50-day moving average price of $25.05 and a two-hundred day moving average price of $20.33. The firm has a market capitalization of $357.98 million, a price-to-earnings ratio of -0.82 and a beta of 2.55.

Starz Entertainment (NASDAQ:STRZ - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The company reported ($11.27) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.59) by ($10.68). The company had revenue of $307.90 million for the quarter. Starz Entertainment had a negative net margin of 33.98% and a negative return on equity of 25.64%. As a group, research analysts forecast that Starz Entertainment Corp. will post -6.12 EPS for the current year.

Insider Buying and Selling at Starz Entertainment

In related news, insider James Kapenstein bought 1,000 shares of the business's stock in a transaction on Monday, August 10th. The shares were bought at an average cost of $25.73 per share, for a total transaction of $25,730.00. Following the completion of the purchase, the insider owned 12,302 shares of the company's stock, valued at $316,530.46. This represents a 8.85% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jeffrey Hirsch bought 10,000 shares of the business's stock in a transaction on Monday, August 10th. The stock was bought at an average price of $24.80 per share, for a total transaction of $248,000.00. Following the completion of the purchase, the chief executive officer directly owned 65,000 shares of the company's stock, valued at $1,612,000. The trade was a 18.18% increase in their position. The disclosure for this purchase is available in the SEC filing. 22.62% of the stock is owned by company insiders.

Institutional Trading of Starz Entertainment

Large investors have recently modified their holdings of the company. Legal & General Group Plc bought a new stake in shares of Starz Entertainment during the second quarter valued at about $34,000. Gamco Investors INC. ET AL lifted its holdings in Starz Entertainment by 4.3% in the first quarter. Gamco Investors INC. ET AL now owns 72,411 shares of the company's stock worth $833,000 after purchasing an additional 3,000 shares during the period. Hsbc Holdings PLC lifted its holdings in Starz Entertainment by 11.6% in the first quarter. Hsbc Holdings PLC now owns 40,747 shares of the company's stock worth $469,000 after purchasing an additional 4,243 shares during the period. Persistent Asset Partners Ltd bought a new position in Starz Entertainment in the 2nd quarter valued at about $196,000. Finally, Deutsche Bank AG bought a new position in Starz Entertainment in the 2nd quarter valued at about $342,000.

About Starz Entertainment

Starz Entertainment Corp. is a media and entertainment company that operates premium subscription television and streaming services. Its offerings include the STARZ premium network, related linear television channels and the STARZ streaming platform, which provides original series, feature films and licensed entertainment content.

The company's programming has included original dramas, comedies and franchises, as well as a selection of theatrical and television movies. STARZ content is distributed through traditional pay-TV providers, digital platforms and direct-to-consumer subscriptions, with availability varying by market and distribution partner.

Starz was established in 1994 as a premium television service and was acquired by Lionsgate in 2016.

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