Starz Entertainment (NASDAQ:STRZ) Releases Earnings Results, Misses Estimates By $1.15 EPS

Key Points

• Starz Entertainment reported a quarterly earnings per share (EPS) of ($2.54), significantly missing the consensus estimate of ($1.39) by ($1.15).
• Insider trading activity showed that Director Mark H. Md Rachesky acquired 353,334 shares at an average price of $14.15, increasing his position by 299.90%.
• Research analysts have mixed ratings on Starz Entertainment; while Morgan Stanley maintains a "reduce" rating, Raymond James Financial has raised its price target to $22.00 and assigned an "outperform" rating.

Starz Entertainment (NASDAQ:STRZ - Get Free Report) announced its earnings results on Thursday. The company reported ($2.54) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.39) by ($1.15), Zacks reports. The business had revenue of $319.70 million for the quarter, compared to the consensus estimate of $328.70 million.

Starz Entertainment Stock Performance

Shares of STRZ traded up $0.68 during mid-day trading on Tuesday, reaching $13.25. The company's stock had a trading volume of 52,822 shares, compared to its average volume of 233,381. Starz Entertainment has a 52 week low of $8.00 and a 52 week high of $22.98. The stock's fifty day moving average price is $15.71.

Analyst Ratings Changes

A number of equities research analysts have issued reports on STRZ shares. Seaport Res Ptn upgraded shares of Starz Entertainment to a "strong-buy" rating in a report on Sunday, May 18th. Morgan Stanley reduced their price target on shares of Starz Entertainment from $15.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Friday. TD Cowen upgraded shares of Starz Entertainment to a "hold" rating in a report on Tuesday, May 13th. Wall Street Zen raised shares of Starz Entertainment from a "sell" rating to a "hold" rating in a research report on Saturday. Finally, Raymond James Financial reissued an "outperform" rating and issued a $22.00 price objective (up previously from $19.00) on shares of Starz Entertainment in a report on Friday, May 30th. Three equities research analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $25.00.

Insider Buying and Selling at Starz Entertainment

In other news, Director Joshua W. Sapan bought 5,500 shares of the stock in a transaction dated Tuesday, June 3rd. The stock was purchased at an average cost of $17.98 per share, for a total transaction of $98,890.00. Following the transaction, the director owned 5,500 shares of the company's stock, valued at $98,890. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Mark H. Md Rachesky purchased 353,334 shares of the stock in a transaction that occurred on Monday, June 2nd. The stock was bought at an average price of $14.15 per share, with a total value of $4,999,676.10. Following the completion of the transaction, the director owned 471,153 shares of the company's stock, valued at $6,666,814.95. The trade was a 299.90% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 53.60% of the company's stock.

Hedge Funds Weigh In On Starz Entertainment

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Honeycomb Asset Management LP purchased a new stake in shares of Starz Entertainment in the second quarter valued at approximately $1,607,000. Gabelli Funds LLC purchased a new position in Starz Entertainment during the 2nd quarter worth approximately $1,104,000. Gamco Investors INC. ET AL acquired a new stake in Starz Entertainment during the 2nd quarter worth approximately $570,000. Bank of America Corp DE acquired a new stake in shares of Starz Entertainment in the 2nd quarter valued at approximately $518,000. Finally, JPMorgan Chase & Co. acquired a new position in Starz Entertainment during the second quarter worth $409,000.

About Starz Entertainment

Starz is a premium cable and streaming network owned by Starz Entertainment, which was formerly a part of Lionsgate. Starz had about 20 million subscribers in the U.S. and Canada as of Dec. 31, 2024. The company's franchises include “Outlander” and “Power."