Lions Gate Entertainment Corp. (LGF) Downgraded to “Sell” at Zacks Investment Research
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 brokerages have also recently commented on LGF. B. Riley reiterated a buy rating and issued a $34.00 target price on shares of Lions Gate Entertainment Corp. in a research report on Saturday, August 6th. FBR & Co reduced their target price on shares of Lions Gate Entertainment Corp. from $32.00 to $30.00 and set an outperform rating for the company in a research report on Monday, August 8th. Brean Capital set a $27.00 target price on shares of Lions Gate Entertainment Corp. and gave the company a buy rating in a research report on Monday, September 19th. Argus reiterated a buy rating on shares of Lions Gate Entertainment Corp. in a research report on Saturday, July 9th. Finally, Pacific Crest reiterated a buy rating on shares of Lions Gate Entertainment Corp. in a research report on Tuesday, July 26th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and fifteen have assigned a buy rating to the company’s stock. Lions Gate Entertainment Corp. currently has a consensus rating of Buy and a consensus target price of $28.31.
Shares of Lions Gate Entertainment Corp. (NYSE:LGF) traded up 1.39% during midday trading on Tuesday, reaching $18.98. 771,828 shares of the company were exchanged. The firm has a market capitalization of $2.80 billion, a P/E ratio of 267.32 and a beta of 1.30. The firm has a 50-day moving average of $20.36 and a 200 day moving average of $20.66. Lions Gate Entertainment Corp. has a 52 week low of $16.21 and a 52 week high of $41.41.
Lions Gate Entertainment Corp. (NYSE:LGF) last posted its quarterly earnings data on Thursday, August 4th. The company reported $0.19 earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.17) by $0.36. The company earned $553.60 million during the quarter, compared to analysts’ expectations of $494.34 million. Lions Gate Entertainment Corp. had a net margin of 0.43% and a return on equity of 5.81%. The firm’s revenue for the quarter was up 35.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.31 earnings per share. On average, equities research analysts expect that Lions Gate Entertainment Corp. will post $0.40 EPS for the current year.
In related news, Director Gordon Crawford bought 50,000 shares of the firm’s stock in a transaction on Tuesday, August 9th. The shares were bought at an average cost of $21.70 per share, for a total transaction of $1,085,000.00. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Arthur Evrensel bought 2,600 shares of the firm’s stock in a transaction on Monday, October 17th. The shares were bought at an average price of $18.60 per share, for a total transaction of $48,360.00. The disclosure for this purchase can be found here. 30.40% of the stock is currently owned by corporate insiders.
Large investors have recently modified their holdings of the company. Fairpointe Capital LLC bought a new stake in shares of Lions Gate Entertainment Corp. during the first quarter valued at approximately $96,088,000. Primecap Management Co. CA purchased a new position in Lions Gate Entertainment Corp. during the second quarter valued at about $70,502,000. Westfield Capital Management Co. LP purchased a new position in Lions Gate Entertainment Corp. during the second quarter valued at about $17,857,000. Point72 Asset Management L.P. purchased a new position in Lions Gate Entertainment Corp. during the second quarter valued at about $12,397,000. Finally, Sarbit Advisory Services Inc. increased its position in Lions Gate Entertainment Corp. by 52.2% in the second quarter. Sarbit Advisory Services Inc. now owns 1,457,500 shares of the company’s stock valued at $29,485,000 after buying an additional 500,000 shares during the period. Institutional investors own 96.12% 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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