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 note issued to 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.”
Several other brokerages also recently issued reports on LGF. B. Riley reaffirmed a “buy” rating and issued a $34.00 price target on shares of Lions Gate Entertainment Corp. in a report on Saturday, August 6th. FBR & Co reduced their price target on shares of Lions Gate Entertainment Corp. from $32.00 to $30.00 and set an “outperform” rating on the stock in a report on Monday, August 8th. Brean Capital set a $27.00 price target on shares of Lions Gate Entertainment Corp. and gave the company a “buy” rating in a report on Monday, September 19th. Argus reaffirmed a “buy” rating on shares of Lions Gate Entertainment Corp. in a report on Saturday, July 9th. Finally, Pacific Crest reaffirmed a “buy” rating on shares of Lions Gate Entertainment Corp. in a report on Tuesday, July 26th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and fifteen have assigned a buy rating to the stock. The company presently has an average rating of “Buy” and an average target price of $28.31.
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Lions Gate Entertainment Corp. (NYSE:LGF) traded up 0.70% during mid-day trading on Tuesday, reaching $18.71. 954,079 shares of the company traded hands. The stock has a 50-day moving average of $20.42 and a 200 day moving average of $20.68. Lions Gate Entertainment Corp. has a 52-week low of $16.21 and a 52-week high of $41.41. The stock has a market capitalization of $2.76 billion, a PE ratio of 263.52 and a beta of 1.30.
Lions Gate Entertainment Corp. (NYSE:LGF) last announced its quarterly earnings results on Thursday, August 4th. The company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.17) by $0.36. Lions Gate Entertainment Corp. had a net margin of 0.43% and a return on equity of 5.81%. The company had revenue of $553.60 million for the quarter, compared to the consensus estimate of $494.34 million. During the same quarter in the prior year, the firm earned $0.31 earnings per share. The company’s revenue for the quarter was up 35.4% compared to the same quarter last year. Equities research analysts expect that Lions Gate Entertainment Corp. will post $0.40 earnings per share for the current year.
In other news, CEO Jon Feltheimer sold 255,718 shares of the company’s stock in a transaction on Thursday, September 15th. The shares were sold at an average price of $20.25, for a total value of $5,178,289.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Gordon Crawford bought 50,000 shares of the firm’s stock in a transaction dated Tuesday, August 9th. The stock was purchased 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 currently owned by insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Amica Retiree Medical Trust bought a new position in Lions Gate Entertainment Corp. during the second quarter worth approximately $105,000. IFP Advisors Inc increased its position in 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 position in Lions Gate Entertainment Corp. during the first quarter worth approximately $141,000. Advisor Group Inc. bought a new position in Lions Gate Entertainment Corp. during the second quarter worth approximately $147,000. Finally, Legal & General Group Plc increased its position in 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 during the period. Institutional investors and hedge funds own 96.12% of the company’s stock.
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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