Skydance (NYSE:SKYD) Stock Falls 4.7% – Should You Sell?

Skydance Corporation (NYSE:SKYD) shares traded down 4.7% during trading on Friday. The company traded as low as $6.80 and last traded at $6.92. 35,682,179 shares were traded during trading, an increase of 155% from the average daily volume of 13,978,338 shares. The stock had previously closed at $7.26.

More Skydance News

Here are the key news stories impacting Skydance this week:

• Positive Sentiment: AEW executives said they remain optimistic about the wrestling promotion’s outlook and described Skydance CEO David Ellison as enthusiastic about AEW. Continued support could strengthen Skydance’s sports and entertainment content strategy, although the financial terms and impact remain unclear. Tony Khan Reveals How Skydance Boss David Ellison Has Reacted to AEW Tony Khan Doubles Down on AEW’s Outlook After Skydance News
• Neutral Sentiment: A former NBC and Skydance executive is reportedly pursuing linear-television assets. Such acquisitions could provide Skydance with additional content and distribution opportunities, but they could also require substantial capital and add to integration risk. Former NBC, Skydance Executive Seeks Linear TV Assets
• Neutral Sentiment: Skydance’s new film era will begin with projects including Street Fighter and Clayface. Their performance could materially affect the company’s post-merger growth prospects, but investors currently face meaningful execution and box-office risk. Street Fighter and Clayface Kick Off Skydance Film Era
• Negative Sentiment: Ricochet, the Skydance-owned producer behind The Repair Shop, is reportedly making layoffs. The reductions may lower costs, but they also signal pressure within the production business. Ricochet Makes Layoffs
• Negative Sentiment: Skydance shares fell sharply after nearly 471 million warrants began trading separately. The company characterized the move as a technical adjustment, but the large warrant supply has increased dilution concerns and contributed to the stock reaching a new 52-week low. Skydance Shares Plunge After Warrant Distribution
• Negative Sentiment: Morningstar reportedly sees Skydance’s streaming ambitions facing a roughly $12 valuation and a heavy debt burden. Analysts and investors remain concerned about leverage, the cost of building streaming scale and the company’s ability to generate sustainable profits. Morningstar Cites Valuation and Debt Concerns Skydance: Here Comes The Flood
• Negative Sentiment: Inflation and interest-rate concerns have added to pressure on media and technology stocks, amplifying Skydance’s decline. Skydance Shares Tumble Amid Market Volatility

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on SKYD shares. Weiss Ratings upgraded Skydance from a “sell (d-)” rating to a “sell (d)” rating in a research report on Thursday, August 6th. Barclays set a $7.00 target price on Skydance and gave the stock an “underweight” rating in a research report on Wednesday, October 7th. Arete Research restated a “sell” rating and set a $1.00 target price on shares of Skydance in a research report on Thursday, July 9th. TD Cowen decreased their target price on Skydance from $6.50 to $4.00 and set a “hold” rating on the stock in a research note on Wednesday, August 5th. Finally, Citigroup assumed coverage on Skydance in a research note on Monday, September 14th. They issued an “outperform” rating on the stock. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and nine have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and an average target price of $5.59.

Skydance Trading Down 4.7%

The firm has a market capitalization of $7.76 billion, a P/E ratio of 23.86 and a beta of 1.53. The company has a quick ratio of 0.88, a current ratio of 1.04 and a debt-to-equity ratio of 1.13. The firm’s 50-day simple moving average is $5.88 and its 200-day simple moving average is $5.30.

Skydance (NYSE:SKYD) last released its quarterly earnings results on Tuesday, August 4th. The media and entertainment company reported $0.09 EPS for the quarter, topping analysts’ consensus estimates of $0.08 by $0.01. The business had revenue of $6.91 billion during the quarter. Skydance had a negative net margin of 2.13% and a positive return on equity of 4.11%. Analysts anticipate that Skydance Corporation will post -0.37 EPS for the current year.

Skydance Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th were issued a dividend of $0.0250 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $0.10 dividend on an annualized basis and a dividend yield of 1.4%. This is a decrease from Skydance’s previous quarterly dividend of $0.05. Skydance’s payout ratio is presently 68.97%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MTCO Ltd. raised its position in Skydance by 21.4% during the second quarter. MTCO Ltd. now owns 7,650,000 shares of the media and entertainment company’s stock valued at $75,429,000 after purchasing an additional 1,350,000 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in Skydance by 126.3% during the first quarter. Dimensional Fund Advisors LP now owns 3,970,920 shares of the media and entertainment company’s stock worth $35,812,000 after purchasing an additional 2,216,433 shares during the last quarter. LTS Liquid Investments LLC lifted its stake in Skydance by 68.7% during the first quarter. LTS Liquid Investments LLC now owns 2,030,591 shares of the media and entertainment company’s stock worth $18,316,000 after purchasing an additional 827,248 shares during the last quarter. SG Americas Securities LLC lifted its stake in Skydance by 106.4% during the first quarter. SG Americas Securities LLC now owns 1,597,902 shares of the media and entertainment company’s stock worth $14,413,000 after purchasing an additional 823,629 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Skydance during the second quarter worth about $14,002,000. 73.00% of the stock is currently owned by hedge funds and other institutional investors.

About Skydance

Skydance Corporation is a global media and entertainment company formerly known as Paramount Skydance Corporation.