Lions Gate Entertainment Corp. (LGF) Downgraded by Zacks Investment Research
Lions Gate Entertainment Corp. (NYSE:LGF) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.
According to Zacks, “Lions Gate reported better-than-expected first-quarter fiscal 2017 results, wherein both the top and bottom line beat the Zacks Consensus Estimate for the second straight quarter. Sturdy performance came on the back of a surge in Motion Pictures’ and International revenues. Further, in an effort, to enhance its competitive position, maximize return and build a diversified portfolio, Lions Gate announced the acquisition of media and entertainment company Starz for $4.4 billion. After the completion of the deal, the company expects more than $200 million in annual cash savings. We believe that the addition of Starz will not only help the company become a major player in the TV space but will also help it to recover some of its lost ground in streaming network. On the other hand, the motion picture industry is highly competitive. Hence, Lions Gate has to continually strive to maintain their share of box office receipts.”
A number of other research firms have also commented on LGF. B. Riley reaffirmed a “buy” rating and issued a $34.00 price objective on shares of Lions Gate Entertainment Corp. in a research note on Saturday, August 6th. FBR & Co cut their price objective on Lions Gate Entertainment Corp. from $32.00 to $30.00 and set an “outperform” rating on the stock in a research note on Monday, August 8th. Brean Capital set a $27.00 price objective on Lions Gate Entertainment Corp. and gave the stock a “buy” rating in a research note on Monday, September 19th. Argus reaffirmed a “buy” rating on shares of Lions Gate Entertainment Corp. in a research note on Saturday, July 9th. Finally, Pacific Crest reaffirmed a “buy” rating on shares of Lions Gate Entertainment Corp. in a research note on Tuesday, July 26th. One research analyst has rated the stock with a sell rating, six have given a hold rating and fifteen have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus target price of $28.41.
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Lions Gate Entertainment Corp. (NYSE:LGF) traded down 2.08% during midday trading on Wednesday, hitting $19.27. The stock had a trading volume of 2,775,448 shares. The stock’s 50-day moving average is $20.68 and its 200-day moving average is $20.76. Lions Gate Entertainment Corp. has a 1-year low of $16.21 and a 1-year high of $41.41. The stock has a market capitalization of $2.85 billion, a PE ratio of 271.41 and a beta of 1.30.
Lions Gate Entertainment Corp. (NYSE:LGF) last posted its quarterly earnings data on Thursday, August 4th. The company reported $0.19 EPS for the quarter, topping the Zacks’ consensus estimate of ($0.17) by $0.36. The company had revenue of $553.60 million for the quarter, compared to analyst estimates of $494.34 million. Lions Gate Entertainment Corp. had a return on equity of 5.81% and a net margin of 0.43%. The firm’s quarterly revenue was up 35.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.31 earnings per share. On average, equities research analysts anticipate that Lions Gate Entertainment Corp. will post $0.40 EPS for the current fiscal year.
In other Lions Gate Entertainment Corp. news, Director Gordon Crawford acquired 50,000 shares of the business’s stock in a transaction on Tuesday, August 9th. The shares were acquired at an average price of $21.70 per share, with a total value of $1,085,000.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Jon Feltheimer sold 255,718 shares of the business’s stock in a transaction on Thursday, September 15th. The stock was sold at an average price of $20.25, for a total value of $5,178,289.50. The disclosure for this sale can be found here. 30.40% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of LGF. Amica Retiree Medical Trust acquired a new position in Lions Gate Entertainment Corp. during the second quarter valued at $105,000. IFP Advisors Inc boosted its position in shares of Lions Gate Entertainment Corp. by 62.3% in the second quarter. IFP Advisors Inc now owns 5,243 shares of the company’s stock worth $106,000 after buying an additional 2,013 shares in the last quarter. BlackRock Japan Co. Ltd purchased a new position in shares of Lions Gate Entertainment Corp. during the first quarter worth approximately $141,000. Advisor Group Inc. purchased a new position in shares of Lions Gate Entertainment Corp. during the second quarter worth approximately $147,000. Finally, Legal & General Group Plc boosted its position in shares of Lions Gate Entertainment Corp. by 3.9% in the second quarter. Legal & General Group Plc now owns 7,830 shares of the company’s stock worth $159,000 after buying an additional 292 shares in the last quarter. 95.97% of the stock is currently owned by institutional investors and hedge funds.
About Lions Gate Entertainment Corp.
Lions Gate Entertainment Corp. is engaged in motion picture production and distribution, television programming and syndication, home entertainment, international distribution and sales, branded channel platforms, interactive ventures and games and location-based entertainment. The Company operates through two segments: Motion Pictures and Television Production.
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