Genius Sports (NYSE:GENI) Stock Falls 5.5% – Here’s Why

Genius Sports Limited (NYSE:GENI)’s stock price was down 5.5% during mid-day trading on Thursday. The stock traded as low as $5.74 and last traded at $5.7860. Approximately 403,444 shares traded hands during trading, a decline of 94% from the average session volume of 6,289,177 shares. The stock had previously closed at $6.12.

More Genius Sports News

Here are the key news stories impacting Genius Sports this week:

• Positive Sentiment: JPMorgan initiated coverage with an Overweight rating and an $8 price target, implying approximately 23.9% upside from the referenced $6.46 level. The endorsement suggests the bank views Genius Sports as an attractively valued sports-data company with room for appreciation. Genius Sports Shares Rise After JPMorgan Initiates Coverage JPMorgan Initiates Genius Sports at Overweight
• Positive Sentiment: Call-option volume reached 4,198 contracts, 176% above the average of 1,523. The unusually high call activity indicates increased short-term bullish speculation, although options positioning does not necessarily reflect long-term fundamentals.
• Neutral Sentiment: Recent coverage is examining whether the launch of Prediction.com could support Genius Sports’ direct-to-consumer ambitions and justify a higher valuation. The articles highlight a potential strategic catalyst, but the investment impact remains uncertain. Genius Sports and Prediction.com Genius Sports Valuation Following Prediction.com Launch
• Negative Sentiment: A separate analysis argued that GENI still looks fully priced despite its previous 64% decline, signaling continued valuation concerns and the possibility that investors may demand stronger execution before assigning the stock a higher multiple. Genius Sports Stock Still Looks Fully Priced

Analysts Set New Price Targets

GENI has been the subject of several recent analyst reports. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $10.50 target price on shares of Genius Sports in a research report on Friday, August 7th. Wells Fargo & Company reissued an “equal weight” rating and set a $8.00 price target on shares of Genius Sports in a research report on Friday, August 7th. Benchmark reissued a “buy” rating on shares of Genius Sports in a research note on Friday, August 28th. Weiss Ratings upgraded Genius Sports from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Monday, August 3rd. Finally, Stifel Nicolaus lifted their target price on Genius Sports from $5.00 to $7.00 and gave the company a “hold” rating in a research note on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $11.25.

Genius Sports Stock Performance

The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 1.10. The firm has a market capitalization of $1.59 billion, a PE ratio of -9.49 and a beta of 1.88. The firm’s fifty day moving average price is $7.20 and its 200 day moving average price is $5.96.

Genius Sports (NYSE:GENI) last announced its quarterly earnings data on Friday, August 7th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.21). The firm had revenue of $195.50 million for the quarter, compared to analysts’ expectations of $184.43 million. Genius Sports had a negative return on equity of 23.83% and a negative net margin of 22.99%.Genius Sports’s revenue was up 64.7% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.21) earnings per share. On average, research analysts anticipate that Genius Sports Limited will post -0.35 earnings per share for the current year.

Insider Activity

In other news, insider Thomas Russell sold 50,000 shares of the firm’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $6.51, for a total transaction of $325,500.00. Following the completion of the sale, the insider directly owned 471,467 shares of the company’s stock, valued at $3,069,250.17. This trade represents a 9.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Mark Locke sold 477,449 shares of Genius Sports stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.58, for a total value of $3,141,614.42. Following the sale, the chief executive officer owned 19,697,767 shares of the company’s stock, valued at approximately $129,611,306.86. This represents a 2.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 850,000 shares of company stock worth $5,582,049. Insiders own 16.60% of the company’s stock.

Institutional Trading of Genius Sports

A number of institutional investors have recently added to or reduced their stakes in GENI. Main Management ETF Advisors LLC increased its stake in shares of Genius Sports by 1.0% during the 4th quarter. Main Management ETF Advisors LLC now owns 163,647 shares of the company’s stock worth $1,803,000 after purchasing an additional 1,672 shares during the last quarter. First Dallas Securities Inc. lifted its stake in shares of Genius Sports by 3.0% in the 4th quarter. First Dallas Securities Inc. now owns 68,500 shares of the company’s stock valued at $755,000 after purchasing an additional 2,000 shares during the last quarter. Nixon Capital LLC lifted its stake in shares of Genius Sports by 0.3% in the 4th quarter. Nixon Capital LLC now owns 840,660 shares of the company’s stock valued at $9,264,000 after purchasing an additional 2,533 shares during the last quarter. Principal Financial Group Inc. lifted its stake in shares of Genius Sports by 24.1% in the 1st quarter. Principal Financial Group Inc. now owns 16,038 shares of the company’s stock valued at $71,000 after purchasing an additional 3,114 shares during the last quarter. Finally, Pacer Advisors Inc. boosted its holdings in Genius Sports by 29.1% in the first quarter. Pacer Advisors Inc. now owns 15,270 shares of the company’s stock worth $68,000 after purchasing an additional 3,440 shares in the last quarter. 81.91% of the stock is currently owned by institutional investors and hedge funds.

About Genius Sports

Genius Sports Limited (NYSE:GENI) is a sports technology and data company that provides official sports data, technology, and digital services to sports leagues, federations, teams, broadcasters, sportsbooks, and brands. Its platforms help clients collect, manage, distribute, and commercialize live sports information across digital channels.

The company’s offerings include live scores and statistics, data feeds for sports betting, fan-engagement tools, video streaming and content services, and advertising and sponsorship technology.