Starz Entertainment (NASDAQ:STRZ) Shares Gap Down on Disappointing 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 before the market opened 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 changing 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 during the quarter, compared to analyst estimates of $328.70 million.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on STRZ shares. Benchmark assumed coverage on Starz Entertainment in a research note on Wednesday, July 9th. They issued a "buy" rating and a $39.00 price target for the company. Morgan Stanley set a $14.00 target price on shares of Starz Entertainment and gave the company an "equal weight" rating in a research report on Friday. Seaport Res Ptn raised shares of Starz Entertainment to a "strong-buy" rating in a research note on Sunday, May 18th. TD Cowen upgraded shares of Starz Entertainment to a "hold" rating in a research report on Tuesday, May 13th. Finally, Raymond James Financial reiterated an "outperform" rating and issued a $22.00 price objective (up from $19.00) on shares of Starz Entertainment in a report on Friday, May 30th. Three analysts have rated the stock with a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, Starz Entertainment has a consensus rating of "Moderate Buy" and a consensus price target of $25.00.

Insider Transactions at Starz Entertainment

In other news, Director Joshua W. Sapan acquired 5,500 shares of the business's stock in a transaction dated Tuesday, June 3rd. The stock was acquired at an average price of $17.98 per share, for a total transaction of $98,890.00. Following the completion of the acquisition, the director directly owned 5,500 shares in the company, valued at $98,890. This represents a ∞ increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, insider Warner Bros. Discovery, Inc. sold 353,334 shares of the firm's stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $14.15, for a total value of $4,999,676.10. The disclosure for this sale can be found here.

Institutional Trading of Starz Entertainment

Hedge funds and other institutional investors have recently made changes to their positions in the business. Russell Investments Group Ltd. bought a new stake in Starz Entertainment during the second quarter worth approximately $28,000. CWM LLC bought a new position in shares of Starz Entertainment in the second quarter valued at $33,000. Legal & General Group Plc acquired a new stake in shares of Starz Entertainment during the 2nd quarter valued at $41,000. New York State Common Retirement Fund bought a new stake in shares of Starz Entertainment during the 2nd quarter worth $48,000. Finally, Police & Firemen s Retirement System of New Jersey acquired a new position in shares of Starz Entertainment in the 2nd quarter worth $49,000.

Starz Entertainment Stock Up 2.7%

The firm has a fifty day simple moving average of $15.71.

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."