Alliance Entertainment (NASDAQ:AENT) Cut to “Hold” at Wall Street Zen

Alliance Entertainment (NASDAQ:AENT) was downgraded by Wall Street Zen from a “strong-buy” rating to a “hold” rating in a report released on Saturday.

A number of other research firms have also recently commented on AENT. Weiss Ratings reiterated a “hold (c)” rating on shares of Alliance Entertainment in a research note on Wednesday, January 21st. Maxim Group set a $8.00 price objective on shares of Alliance Entertainment in a report on Friday. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $10.00.

Alliance Entertainment Price Performance

NASDAQ AENT opened at $5.50 on Friday. The firm’s fifty day simple moving average is $7.50 and its two-hundred day simple moving average is $6.62. The firm has a market capitalization of $280.28 million, a P/E ratio of 12.79 and a beta of 0.46. The company has a current ratio of 1.28, a quick ratio of 0.64 and a debt-to-equity ratio of 0.62. Alliance Entertainment has a 12-month low of $2.21 and a 12-month high of $8.80.

Alliance Entertainment (NASDAQ:AENT) last issued its quarterly earnings data on Thursday, February 12th. The company reported $0.18 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.13). The business had revenue of $368.71 million for the quarter, compared to analysts’ expectations of $427.38 million. Alliance Entertainment had a net margin of 2.06% and a return on equity of 21.26%.

Institutional Trading of Alliance Entertainment

A number of hedge funds and other institutional investors have recently made changes to their positions in AENT. North Star Investment Management Corp. purchased a new position in shares of Alliance Entertainment during the fourth quarter worth $671,000. O Shaughnessy Asset Management LLC boosted its holdings in Alliance Entertainment by 91.5% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 130,855 shares of the company’s stock valued at $1,057,000 after purchasing an additional 62,510 shares during the last quarter. Marshall Wace LLP acquired a new stake in Alliance Entertainment during the 4th quarter worth about $422,000. Ritholtz Wealth Management purchased a new position in shares of Alliance Entertainment during the 3rd quarter valued at about $290,000. Finally, Jacobs Levy Equity Management Inc. acquired a new position in shares of Alliance Entertainment in the 3rd quarter valued at about $193,000. Institutional investors and hedge funds own 0.27% of the company’s stock.

Key Alliance Entertainment News

Here are the key news stories impacting Alliance Entertainment this week:

• Positive Sentiment: Operational improvements — Adjusted EBITDA rose 15% to $18.5M, gross margin expanded ~210 bps to 12.8%, and net income increased to $9.4M ($0.18/share). These demonstrate margin improvement and better profitability. GlobeNewsWire Release
• Positive Sentiment: Stronger balance sheet — the company ended the quarter with about $74.1M in working capital, which supports liquidity and operational flexibility. GlobeNewsWire Release
• Neutral Sentiment: Business development — Alliance plans to showcase an expanding collectibles portfolio at New York Toy Fair 2026, a product/marketing event that could help sales over time but is not an immediate earnings catalyst. Business Insider
• Neutral Sentiment: Short-interest reporting appears inconsistent — February short-interest notices reference a “large increase” but show 0 shares/NaN in the data feed, making any short-squeeze or bearish short-interest interpretation unclear.
• Negative Sentiment: Earnings and revenue miss — Q2 EPS was $0.18 vs. consensus ~$0.31 and revenue was $368.7M vs. ~$427.4M expected; misses likely drove the immediate negative market reaction. Zacks
• Negative Sentiment: Investor call / transcript coverage is live — analysts and investors will parse the Q2 call for sales drivers, guidance, and inventory/seasonality color; early sentiment from transcripts can amplify intraday moves. Seeking Alpha Transcript MSN

Alliance Entertainment Company Profile

Alliance Entertainment (NASDAQ: AENT) is a distributor of physical media and related entertainment products, serving retailers, public libraries and online merchants. The company’s core business revolves around the wholesale distribution of music and video titles on CD, DVD and Blu-ray formats, as well as vinyl records, audiobooks, video games and select gift and novelty items. By maintaining a broad catalog of new and catalog titles, Alliance Entertainment enables brick-and-mortar and e-commerce channels to access an extensive range of products from major and independent labels.

In addition to its product offerings, Alliance Entertainment provides supply-chain and logistics services designed to streamline inventory management and order fulfillment.