Sphere Entertainment (NYSE:SPHR) Sets New 12-Month High on Better-Than-Expected Earnings

Key Points

• 52-week high after an earnings beat: Sphere reported EPS of ($0.04) vs. a consensus ($0.44) and revenue of $386.41M (vs. $368.14M), a 37.7% year-over-year revenue increase.
• Analysts have lifted ratings and targets—Morgan Stanley to $158 (overweight) and Goldman Sachs to $140 (buy)—with a consensus rating of “Moderate Buy” and a consensus price target of $122.75.
• Institutional investors own 92.03% of the stock, including large new positions by Healthcare of Ontario and sizeable stake increases by Goldman Sachs, while the company has a $4.90B market cap and a negative P/E (-302.34).

Sphere Entertainment Co. (NYSE:SPHR - Get Free Report) shares reached a new 52-week high during trading on Tuesday following a stronger than expected earnings report. The company traded as high as $149.00 and last traded at $136.7340, with a volume of 299643 shares changing hands. The stock had previously closed at $136.46.

The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.44) by $0.40. Sphere Entertainment had a net margin of 2.16% and a negative return on equity of 8.84%. The firm had revenue of $386.41 million for the quarter, compared to analysts' expectations of $368.14 million. During the same period in the previous year, the company posted ($2.27) EPS. The company's quarterly revenue was up 37.7% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on SPHR shares. The Goldman Sachs Group lifted their price objective on shares of Sphere Entertainment from $126.00 to $140.00 and gave the stock a "buy" rating in a research report on Wednesday, April 8th. Morgan Stanley lifted their price objective on shares of Sphere Entertainment from $135.00 to $158.00 and gave the stock an "overweight" rating in a research report on Friday. Bank of America lifted their price objective on shares of Sphere Entertainment from $110.00 to $132.00 and gave the stock a "neutral" rating in a research report on Thursday, April 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Sphere Entertainment in a research report on Monday, April 20th. Finally, Citizens Jmp assumed coverage on shares of Sphere Entertainment in a research report on Monday, March 30th. They set an "outperform" rating and a $150.00 price objective on the stock. Eight research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $122.75.

Institutional Investors Weigh In On Sphere Entertainment

Institutional investors and hedge funds have recently modified their holdings of the business. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in Sphere Entertainment during the 4th quarter worth $39,909,000. Goldman Sachs Group Inc. lifted its position in Sphere Entertainment by 132.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 628,886 shares of the company's stock worth $20,577,000 after acquiring an additional 357,794 shares during the last quarter. Mane Global Capital Management LP acquired a new position in Sphere Entertainment during the 3rd quarter worth $22,143,000. Woodline Partners LP acquired a new position in Sphere Entertainment during the 3rd quarter worth $20,503,000. Finally, Fred Alger Management LLC lifted its position in Sphere Entertainment by 370.2% during the 4th quarter. Fred Alger Management LLC now owns 350,846 shares of the company's stock worth $33,358,000 after acquiring an additional 276,231 shares during the last quarter. Institutional investors and hedge funds own 92.03% of the company's stock.

Sphere Entertainment Stock Performance

The stock has a market cap of $4.90 billion, a price-to-earnings ratio of -302.34 and a beta of 1.69. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.09 and a current ratio of 1.09. The stock's 50-day simple moving average is $120.41 and its two-hundred day simple moving average is $98.56.

Sphere Entertainment Company Profile

Sphere Entertainment Co NYSE: SPHR is a publicly traded company focused on the development and operation of large-scale immersive entertainment venues. Established as a standalone entity in early 2023 following its separation from Madison Square Garden Entertainment, Sphere leverages cutting-edge audiovisual technologies to create next-generation concert, film and cultural experiences. The company’s flagship venue in Las Vegas showcases its core capabilities, while additional projects are in various stages of development around the world.

At the Las Vegas Sphere, Sphere Entertainment has installed one of the largest LED display surfaces on the planet, wrapping audiences in 16K resolution imagery and spatial audio powered by proprietary sound systems.

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.