Wall Street Zen Downgrades Starz Entertainment (NASDAQ:STRZ) to Sell

Key Points

• Wall Street Zen downgraded Starz Entertainment from hold to sell, adding to a mixed analyst picture on the stock.
• Other firms remain split: recent ratings include buy/outperform calls from Raymond James and Robert W. Baird, while Deutsche Bank and Morgan Stanley were more cautious. Overall, MarketBeat shows a consensus hold rating with an average price target of $29.33.
• Starz shares opened at $24.42, below the consensus target, and the company has a market cap of about $408.6 million. The article also notes insider activity, including a CEO share purchase and a separate insider sale.

Starz Entertainment (NASDAQ:STRZ - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

STRZ has been the subject of a number of other research reports. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $26.00 price target on shares of Starz Entertainment in a research note on Friday, June 5th. Raymond James Financial reiterated an "outperform" rating and set a $29.00 price objective on shares of Starz Entertainment in a research note on Friday, May 8th. Morgan Stanley raised their price objective on shares of Starz Entertainment from $20.00 to $21.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. Robert W. Baird set a $30.00 target price on shares of Starz Entertainment and gave the stock an "outperform" rating in a research report on Monday, May 11th. Finally, JPMorgan Chase & Co. upped their target price on shares of Starz Entertainment from $13.00 to $25.00 and gave the company a "neutral" rating in a research note on Friday, May 29th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $29.33.

Starz Entertainment Price Performance

STRZ stock opened at $24.42 on Friday. The stock's 50 day moving average is $26.56 and its two-hundred day moving average is $17.92. Starz Entertainment has a 52-week low of $8.40 and a 52-week high of $32.58. The company has a market capitalization of $408.55 million, a PE ratio of -1.46 and a beta of 2.35. The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 1.26.

Insider Transactions at Starz Entertainment

In related news, insider Alison Hoffman sold 13,661 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $21.42, for a total transaction of $292,618.62. Following the sale, the insider directly owned 94,419 shares of the company's stock, valued at approximately $2,022,454.98. This represents a 12.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Jeffrey Hirsch acquired 10,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The stock was acquired at an average cost of $20.72 per share, with a total value of $207,200.00. Following the acquisition, the chief executive officer owned 55,000 shares of the company's stock, valued at $1,139,600. This trade represents a 22.22% 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

Several hedge funds and other institutional investors have recently modified their holdings of the business. Bank of America Corp DE grew its position in shares of Starz Entertainment by 35.2% during the 1st quarter. Bank of America Corp DE now owns 90,937 shares of the company's stock valued at $1,046,000 after buying an additional 23,689 shares during the last quarter. Renaissance Technologies LLC bought a new position in Starz Entertainment in the first quarter worth about $577,000. Gamco Investors INC. ET AL lifted its holdings in Starz Entertainment by 4.3% in the first quarter. Gamco Investors INC. ET AL now owns 72,411 shares of the company's stock worth $833,000 after acquiring an additional 3,000 shares during the last quarter. Sei Investments Co. acquired a new position in Starz Entertainment in the first quarter valued at approximately $190,000. Finally, Hsbc Holdings PLC grew its holdings in shares of Starz Entertainment by 11.6% during the first quarter. Hsbc Holdings PLC now owns 40,747 shares of the company's stock valued at $469,000 after purchasing an additional 4,243 shares during 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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