Starz Entertainment (NASDAQ:STRZ) Shares Gap Down Following Weak Earnings

Key Points

• Starz Entertainment shares opened at $14.36 after a significant gap down from the previous close of $15.36, following the announcement of disappointing quarterly earnings.
• The company reported an EPS of ($2.54), missing analysts' estimates by ($1.15) and also falling short of revenue expectations of $328.70 million with actual revenue of $319.70 million.
• Analysts have mixed ratings on STRZ, with an average rating of "Moderate Buy" and a price target of $25.00, while one analyst rated the stock as a sell.

Starz Entertainment Corp. (NASDAQ:STRZ - Get Free Report)'s stock price gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $15.36, but opened at $14.36. Starz Entertainment shares last traded at $12.54, with a volume of 59,844 shares trading hands.

The company reported ($2.54) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.39) by ($1.15). The firm had revenue of $319.70 million for the quarter, compared to analysts' expectations of $328.70 million.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Wall Street Zen raised shares of Starz Entertainment from a "sell" rating to a "hold" rating in a research note on Saturday. Morgan Stanley decreased their price objective on shares of Starz Entertainment from $15.00 to $14.00 and set an "equal weight" rating for the company in a research report on Friday, August 15th. Benchmark initiated coverage on shares of Starz Entertainment in a research report on Wednesday, July 9th. They set a "buy" rating and a $39.00 price objective for the company. TD Cowen upgraded shares of Starz Entertainment to a "hold" rating in a research report on Tuesday, May 13th. Finally, Seaport Res Ptn upgraded shares of Starz Entertainment to a "strong-buy" rating in a research report on Sunday, May 18th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Starz Entertainment currently has a consensus rating of "Moderate Buy" and a consensus price target of $25.00.

Insiders Place Their Bets

In other Starz Entertainment news, insider Warner Bros. Discovery, Inc. sold 353,334 shares of the firm's stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $14.15, for a total value of $4,999,676.10. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Mark H. Md Rachesky purchased 353,334 shares of Starz Entertainment stock in a transaction 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 acquisition, the director directly owned 471,153 shares of the company's stock, valued at approximately $6,666,814.95. This trade represents a 299.90% increase in their position. The disclosure for this purchase can be found here.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Russell Investments Group Ltd. acquired a new position in shares of Starz Entertainment during the second quarter valued at about $28,000. CWM LLC acquired a new position in shares of Starz Entertainment during the second quarter valued at about $33,000. Legal & General Group Plc acquired a new position in shares of Starz Entertainment during the second quarter valued at about $41,000. New York State Common Retirement Fund acquired a new position in shares of Starz Entertainment during the second quarter valued at about $48,000. Finally, Police & Firemen s Retirement System of New Jersey acquired a new position in shares of Starz Entertainment during the second quarter valued at about $49,000.

Starz Entertainment Trading Up 3.3%

The company's fifty day moving average price is $15.59.

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."