Starz Entertainment (NASDAQ:STRZ) Trading 6.3% Higher - Still a Buy?

Key Points

• Starz Entertainment shares rose 6.3% to about $29.20 in midday trading, though volume was 43% below the average session level.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and a $31.50 target price, with ratings ranging from Strong Buy to Sell.
• Fundamentals remain challenged after Starz reported a $11.27 quarterly loss per share, far worse than the expected $0.59 loss, alongside negative margins, a 2.05 debt-to-equity ratio and a 0.25 current ratio.

Starz Entertainment Corp. (NASDAQ:STRZ - Get Free Report) shot up 6.3% during mid-day trading on Monday . The company traded as high as $28.68 and last traded at $29.20. 94,956 shares changed hands during mid-day trading, a decline of 43% from the average session volume of 165,918 shares. The stock had previously closed at $27.46.

Wall Street Analysts Forecast Growth

Several research firms have commented on STRZ. Weiss Ratings reissued a "sell (d-)" rating on shares of Starz Entertainment in a report on Wednesday, July 29th. Raymond James Financial reaffirmed an "outperform" rating and issued a $29.00 target price on shares of Starz Entertainment in a report on Friday, May 8th. Robert W. Baird set a $30.00 target price on Starz Entertainment and gave the stock an "outperform" rating in a research report on Monday, May 11th. Wall Street Zen lowered Starz Entertainment from a "hold" rating to a "sell" rating in a research note on Saturday, July 25th. Finally, JPMorgan Chase & Co. raised their price target on Starz Entertainment from $13.00 to $25.00 and gave the company a "neutral" rating in a report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Starz Entertainment presently has a consensus rating of "Hold" and a consensus target price of $31.50.

Starz Entertainment Stock Up 7.0%

The company has a debt-to-equity ratio of 2.05, a current ratio of 0.25 and a quick ratio of 0.25. The company's 50-day simple moving average is $27.08 and its 200 day simple moving average is $20.11. The firm has a market cap of $503.19 million, a P/E ratio of -1.15 and a beta of 2.46.

Starz Entertainment (NASDAQ:STRZ - Get Free Report) last posted its earnings results on Friday, August 7th. The company reported ($11.27) earnings per share for the quarter, missing analysts' consensus estimates of ($0.59) by ($10.68). The business had revenue of $307.90 million during the quarter. Starz Entertainment had a negative return on equity of 25.64% and a negative net margin of 33.98%. Research analysts anticipate that Starz Entertainment Corp. will post -6.12 EPS for the current fiscal year.

Insider Activity

In related news, EVP Jason Wyrick sold 2,803 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $25.47, for a total transaction of $71,392.41. Following the sale, the executive vice president owned 27,241 shares in the company, valued at approximately $693,828.27. This represents a 9.33% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider James M. Kapenstein acquired 1,000 shares of the company's stock in a transaction on Monday, August 10th. The shares were purchased at an average cost of $25.73 per share, with a total value of $25,730.00. Following the completion of the purchase, the insider directly owned 12,302 shares of the company's stock, valued at $316,530.46. This trade represents a 8.85% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 22.62% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Legal & General Group Plc purchased a new position in Starz Entertainment in the 2nd quarter worth about $34,000. BNP Paribas Financial Markets lifted its holdings in Starz Entertainment by 101.8% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,525 shares of the company's stock valued at $37,000 after buying an additional 1,274 shares in the last quarter. Russell Investments Group Ltd. purchased a new stake in Starz Entertainment in the 2nd quarter valued at about $28,000. Advisory Services Network LLC purchased a new stake in Starz Entertainment in the 3rd quarter valued at about $36,000. Finally, Geode Capital Management LLC grew its stake in Starz Entertainment by 1.0% in the 4th quarter. Geode Capital Management LLC now owns 298,793 shares of the company's stock worth $3,497,000 after acquiring an additional 2,888 shares in the last quarter.

About Starz Entertainment

Starz Entertainment NASDAQ: STRZ is a global media and entertainment company that operates premium subscription video services across linear television and digital streaming platforms. The company's core offering includes the STARZ and STARZ ENCORE linear networks in the United States, alongside its STARZPLAY streaming service, which is available in North America, parts of Europe, Latin America and select Asian markets. Through its multi-platform distribution strategy, Starz delivers a combination of original programming, feature films and licensed series to a broad subscriber base.

At the heart of Starz Entertainment's business is its investment in original content production.

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