Zacks Investment Research Downgrades Lions Gate Entertainment Corp. (LGF) to Sell
Lions Gate Entertainment Corp. (NYSE:LGF) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released 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.”
Other research analysts have also recently issued reports about the company. S&P Equity Research reissued a “buy” rating on shares of Lions Gate Entertainment Corp. in a report on Thursday, June 30th. Vetr cut Lions Gate Entertainment Corp. from a “strong-buy” rating to a “buy” rating and set a $24.26 price target on the stock. in a report on Wednesday, June 15th. Argus reissued a “buy” rating on shares of Lions Gate Entertainment Corp. in a report on Saturday, July 9th. B. Riley reissued a “buy” rating and issued a $30.00 price target on shares of Lions Gate Entertainment Corp. in a report on Tuesday, July 5th. Finally, Wunderlich reduced their price objective on Lions Gate Entertainment Corp. from $32.00 to $28.00 and set a “buy” rating on the stock in a research note on Wednesday, August 3rd. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and fifteen have given a buy rating to the stock. The stock currently has an average rating of “Buy” and an average target price of $28.41.
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Lions Gate Entertainment Corp. (NYSE:LGF) traded down 2.109% during mid-day trading on Wednesday, hitting $19.265. The stock had a trading volume of 1,336,657 shares. The stock’s 50-day moving average price is $20.68 and its 200-day moving average price is $20.76. Lions Gate Entertainment Corp. has a 12 month low of $16.21 and a 12 month high of $41.41. The stock has a market cap of $2.84 billion, a price-to-earnings ratio of 271.338 and a beta of 1.30.
Lions Gate Entertainment Corp. (NYSE:LGF) last posted its quarterly earnings results on Thursday, August 4th. The company reported $0.19 EPS for the quarter, topping the Zacks’ consensus estimate of ($0.17) by $0.36. Lions Gate Entertainment Corp. had a return on equity of 5.81% and a net margin of 0.43%. The company had revenue of $553.60 million for the quarter, compared to analysts’ expectations of $494.34 million. During the same period in the previous year, the firm earned $0.31 EPS. The firm’s revenue was up 35.4% compared to the same quarter last year. On average, analysts predict that Lions Gate Entertainment Corp. will post $0.40 earnings per share for the current year.
In related news, CEO Jon Feltheimer sold 255,718 shares of the company’s stock in a transaction on Thursday, September 15th. The stock was sold at an average price of $20.25, for a total transaction of $5,178,289.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Gordon Crawford acquired 50,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 9th. The shares were bought at an average price of $21.70 per share, with a total value of $1,085,000.00. The disclosure for this purchase can be found here. 30.40% of the stock is owned by company insiders.
Several large investors have recently modified their holdings of LGF. Amica Retiree Medical Trust bought a new stake in shares of Lions Gate Entertainment Corp. during the second quarter worth $105,000. IFP Advisors Inc boosted its stake 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 during the period. BlackRock Japan Co. Ltd bought a new stake in shares of Lions Gate Entertainment Corp. during the first quarter worth $141,000. Janney Montgomery Scott LLC bought a new stake in shares of Lions Gate Entertainment Corp. during the second quarter worth $219,000. Finally, Advisor Group Inc. bought a new stake in shares of Lions Gate Entertainment Corp. during the second quarter worth $147,000. Hedge funds and other institutional investors own 95.97% of the company’s stock.
Lions Gate Entertainment Corp. Company Profile
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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