Paramount Skydance Shares Set to Split on Monday, October 5th (NASDAQ:PSKY)

Key Points

• Paramount Skydance will execute a 2-for-1 stock split before the market opens Monday, October 5, with new shares distributed after the close on October 4.
• The company reported quarterly EPS of $0.18, ahead of the $0.15 consensus estimate, and pays a quarterly dividend of $0.05 per share, equivalent to a 1.9% annual yield.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an $11.17 price target. Investors are weighing merger-related opportunities against significant debt financing, higher leverage and execution risks.

Shares of Paramount Skydance Corporation (NASDAQ:PSKY - Free Report) are scheduled to split before the market opens on Monday, October 5th. The 2-1 split was recently announced. The newly created shares will be distributed to shareholders after the market closes on Sunday, October 4th.

Paramount Skydance Price Performance

Shares of NASDAQ:PSKY opened at $10.33 on Thursday. The business has a 50 day moving average price of $9.91 and a 200 day moving average price of $10.04. Paramount Skydance has a twelve month low of $7.62 and a twelve month high of $19.45. The company has a market cap of $11.59 billion, a price-to-earnings ratio of 35.62, a PEG ratio of 1.06 and a beta of 1.50. The company has a quick ratio of 0.88, a current ratio of 1.04 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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.15 by $0.03. The firm had revenue of $6.91 billion for the quarter. Paramount Skydance had a positive return on equity of 4.11% and a negative net margin of 2.13%. Research analysts predict that Paramount Skydance will post 0.5 earnings per share for the current year.

Paramount Skydance Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be given a dividend of $0.05 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.20 dividend on an annualized basis and a yield of 1.9%. Paramount Skydance's payout ratio is 68.97%.

Paramount Skydance News Roundup

Here are the key news stories impacting Paramount Skydance this week:

• Positive Sentiment: A U.S. judge approved a settlement with state attorneys general, removing a major legal obstacle and allowing Paramount to proceed toward closing its approximately $81 billion acquisition of Warner Bros. Discovery. The companies also announced an anticipated closing date, improving deal certainty. U.S. judge allows Paramount to close Warner Bros acquisition
• Positive Sentiment: Paramount Chairman and CEO David Ellison named Ynon Kreiz, the former Mattel chief executive, as co-CEO of the combined company. Kreiz is expected to oversee day-to-day operations and integration, while Ellison will focus on strategy, creative operations and technology. The appointment may reassure investors about the merger’s operating leadership. Paramount announces Ynon Kreiz as co-CEO
• Neutral Sentiment: The merger is expected to create a much larger media company capable of competing with Netflix and YouTube. However, realizing those benefits will depend on successfully integrating the businesses, improving streaming economics and generating cost and revenue synergies.
• Negative Sentiment: Paramount is relying on a very large debt package and bond offering to fund the Warner Bros. Discovery transaction. The financing increases leverage and interest expense, while recent debt-market activity and credit concerns highlight balance-sheet risk. Paramount launches debt sale for Warner Bros. deal
• Negative Sentiment: Paramount’s streaming chief Cindy Holland is leaving ahead of the merger, with HBO executive Casey Bloys expected to lead the combined streaming business. The leadership change could support integration, but it also adds execution uncertainty during a sensitive transition. Paramount streaming chief exits ahead of merger

Wall Street Analyst Weigh In

Several research firms have recently issued reports on PSKY. Benchmark dropped their price objective on shares of Paramount Skydance from $19.00 to $16.00 and set a "buy" rating on the stock in a report on Wednesday, August 5th. Citizens Jmp reiterated a "market outperform" rating and issued a $14.00 target price on shares of Paramount Skydance in a research note on Tuesday, September 22nd. UBS Group decreased their target price on Paramount Skydance from $10.00 to $8.00 and set a "sell" rating on the stock in a research report on Wednesday, August 5th. Morgan Stanley upped their price target on Paramount Skydance from $10.00 to $11.50 and gave the company an "overweight" rating in a report on Tuesday, September 22nd. Finally, Barclays assumed coverage on Paramount Skydance in a research report on Thursday, September 17th. They issued an "underweight" rating and a $8.00 price objective for the company. Four investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and nine have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $11.17.

Institutional Trading of Paramount Skydance

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC bought a new stake in shares of Paramount Skydance in the 2nd quarter valued at approximately $75,000. IFP Advisors Inc boosted its stake in Paramount Skydance by 11.6% in the 2nd quarter. IFP Advisors Inc now owns 50,934 shares of the company's stock valued at $502,000 after buying an additional 5,294 shares in the last quarter. Arizona State Retirement System boosted its stake in Paramount Skydance by 1.2% in the 2nd quarter. Arizona State Retirement System now owns 89,455 shares of the company's stock valued at $882,000 after buying an additional 1,077 shares in the last quarter. Nykredit A S acquired a new position in Paramount Skydance during the second quarter worth $150,000. Finally, Brown Financial Advisors acquired a new position in Paramount Skydance during the second quarter worth $175,000. Institutional investors own 73.00% of the company's stock.

Paramount Skydance Company Profile

Paramount Skydance Corporation NASDAQ: PSKY is a global media and entertainment company formed through the 2025 combination of Paramount Global and Skydance Media. The company develops, produces, and distributes feature films, television programming, live news, sports, and other entertainment content for audiences worldwide.

Its portfolio includes Paramount Pictures, CBS, Paramount+, Pluto TV, and a range of cable and international television networks. The company's content and brands include film franchises, scripted and unscripted television programs, news and sports broadcasts, streaming video, and ad-supported digital entertainment.

Paramount Skydance serves viewers in the United States and international markets through theatrical releases, broadcast television, pay television, streaming platforms, digital services, and licensing arrangements.

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