Stock Traders Purchase High Volume of Call Options on Lionsgate Studios (NYSE:LION)

Key Points

• Unusual options activity: Traders bought 11,829 call options on Lionsgate on Thursday, a 202% increase versus the average daily call volume of 3,913.
• Stock snapshot: LION traded at $9.60 midday with a $2.79 billion market cap and a negative P/E (-11.29); the 50‑day and 200‑day SMAs are $9.25 and $8.08 respectively, and intraday volume (379,993) was well below its average (2,437,379).
• Mixed analyst and investor signals: Several firms raised price targets (Benchmark and Wells Fargo to $12) and the consensus is a "Moderate Buy" with a $10.05 target, while the company recently missed EPS estimates (-$0.07 vs. -$0.02) but beat revenue expectations; major hedge funds (Millennium, Goldman) have also increased stakes.

Lionsgate Studios Corp. (NYSE:LION - Get Free Report) was the target of some unusual options trading activity on Thursday. Stock investors bought 11,829 call options on the company. This represents an increase of 202% compared to the average daily volume of 3,913 call options.

Lionsgate Studios Stock Performance

Shares of NYSE LION traded up $0.08 during midday trading on Thursday, reaching $9.60. 379,993 shares of the stock were exchanged, compared to its average volume of 2,437,379. The company has a 50 day simple moving average of $9.25 and a 200 day simple moving average of $8.08. The stock has a market capitalization of $2.79 billion, a P/E ratio of -11.29 and a beta of -0.48. Lionsgate Studios has a twelve month low of $5.55 and a twelve month high of $11.02.

Lionsgate Studios (NYSE:LION - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The company reported ($0.07) EPS for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.05). The company had revenue of $724.30 million during the quarter, compared to analysts' expectations of $706.03 million. On average, research analysts expect that Lionsgate Studios will post 0.08 earnings per share for the current year.

Analyst Ratings Changes

A number of equities analysts recently weighed in on LION shares. Benchmark boosted their price target on shares of Lionsgate Studios from $11.00 to $12.00 and gave the stock a "buy" rating in a research report on Tuesday, February 3rd. Wall Street Zen lowered shares of Lionsgate Studios from a "hold" rating to a "sell" rating in a research note on Saturday, February 14th. Wells Fargo & Company upped their price target on Lionsgate Studios from $9.00 to $12.00 and gave the company an "overweight" rating in a research report on Friday, January 30th. Zacks Research upgraded Lionsgate Studios from a "strong sell" rating to a "hold" rating in a research report on Monday, January 5th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Lionsgate Studios in a research note on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $10.05.

Hedge Funds Weigh In On Lionsgate Studios

A number of hedge funds have recently modified their holdings of LION. Millennium Management LLC raised its holdings in Lionsgate Studios by 72.6% in the 1st quarter. Millennium Management LLC now owns 1,991,515 shares of the company's stock valued at $14,877,000 after buying an additional 837,774 shares during the period. Goldman Sachs Group Inc. boosted its stake in Lionsgate Studios by 198.5% during the first quarter. Goldman Sachs Group Inc. now owns 414,795 shares of the company's stock worth $3,099,000 after buying an additional 275,839 shares during the period. Jane Street Group LLC acquired a new stake in shares of Lionsgate Studios during the first quarter valued at about $825,000. Envestnet Asset Management Inc. acquired a new stake in shares of Lionsgate Studios during the second quarter valued at about $77,000. Finally, Creative Planning purchased a new stake in shares of Lionsgate Studios in the 2nd quarter valued at approximately $117,000.

About Lionsgate Studios

Lionsgate Studios, operating under the ticker NYSE:LION, is a leading global entertainment company specializing in the production, acquisition and distribution of motion pictures, television programming and digital content. Headquartered in Santa Monica, California, and with additional operations in Vancouver, the company develops, finances and markets feature films that span a wide range of genres—from major franchise hits like The Hunger Games and John Wick to independent and specialty titles.

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