Lions Gate Entertainment Corp. (LGF) Downgraded by Zacks Investment Research to “Sell”
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 to clients and investors on Tuesday.
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 analysts have also issued research reports about the stock. 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. Wunderlich lowered their price target on shares of Lions Gate Entertainment Corp. from $32.00 to $28.00 and set a “buy” rating for the company in a report on Wednesday, August 3rd. Pacific Crest reissued a “buy” rating on shares of Lions Gate Entertainment Corp. in a report on Tuesday, July 26th. Finally, Jefferies Group lowered their price target on shares of Lions Gate Entertainment Corp. from $29.00 to $26.00 and set a “buy” rating for the company in a report on Friday, August 5th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and fifteen have assigned a buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus target price of $28.31.
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Lions Gate Entertainment Corp. (NYSE:LGF) traded up 0.75% during mid-day trading on Tuesday, hitting $18.72. The stock had a trading volume of 1,827,951 shares. Lions Gate Entertainment Corp. has a 1-year low of $16.21 and a 1-year high of $41.41. The company has a 50-day moving average price of $20.37 and a 200 day moving average price of $20.66. The company has a market cap of $2.76 billion, a P/E ratio of 263.66 and a beta of 1.30.
Lions Gate Entertainment Corp. (NYSE:LGF) last issued its quarterly earnings results on Thursday, August 4th. The company reported $0.19 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.17) by $0.36. The business earned $553.60 million during the quarter, compared to analyst estimates of $494.34 million. Lions Gate Entertainment Corp. had a net margin of 0.43% and a return on equity of 5.81%. Lions Gate Entertainment Corp.’s revenue for the quarter was up 35.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.31 earnings per share. Equities research analysts forecast that Lions Gate Entertainment Corp. will post $0.40 EPS for the current fiscal year.
In related news, Director Gordon Crawford acquired 50,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 9th. The shares were acquired at an average cost of $21.70 per share, with a total value of $1,085,000.00. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Jon Feltheimer sold 255,718 shares of the business’s stock in a transaction on Thursday, September 15th. The shares were sold at an average price of $20.25, for a total transaction of $5,178,289.50. The disclosure for this sale can be found here. 30.40% of the stock is currently owned by insiders.
A number of large investors have recently bought and sold shares of LGF. Teachers Advisors Inc. boosted its stake in Lions Gate Entertainment Corp. by 13.4% in the first quarter. Teachers Advisors Inc. now owns 596,815 shares of the company’s stock valued at $13,040,000 after buying an additional 70,742 shares in the last quarter. Cortina Asset Management LLC bought a new stake in Lions Gate Entertainment Corp. during the second quarter valued at approximately $3,758,000. BlackRock Inc. boosted its stake in Lions Gate Entertainment Corp. by 120.9% in the first quarter. BlackRock Inc. now owns 13,279 shares of the company’s stock valued at $290,000 after buying an additional 7,268 shares in the last quarter. Canada Pension Plan Investment Board boosted its stake in Lions Gate Entertainment Corp. by 76,398.3% in the first quarter. Canada Pension Plan Investment Board now owns 305,993 shares of the company’s stock valued at $6,686,000 after buying an additional 305,593 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. bought a new stake in Lions Gate Entertainment Corp. during the first quarter valued at approximately $221,000. 96.12% of the stock is currently owned by institutional investors and hedge funds.
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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