Paramount Skydance (NASDAQ:PSKY) Upgraded to “Strong Sell” at Barclays

Barclays upgraded shares of Paramount Skydance (NASDAQ:PSKY) to a strong sell rating in a research report sent to investors on Thursday morning,Zacks reports.

Several other research analysts have also issued reports on PSKY. Arete Research restated a “sell” rating and set a $2.00 price target on shares of Paramount Skydance in a report on Thursday, July 9th. Weiss Ratings raised shares of Paramount Skydance from a “sell (d-)” rating to a “sell (d)” rating in a research note on Thursday, August 6th. Citigroup started coverage on shares of Paramount Skydance in a research report on Monday. They set an “outperform” rating on the stock. Citizens Jmp started coverage on Paramount Skydance in a report on Monday, September 14th. They set a “market outperform” rating and a $14.00 price target for the company. Finally, Benchmark dropped their price objective on Paramount Skydance from $19.00 to $16.00 and set a “buy” rating on the stock in a research note on Wednesday, August 5th. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and nine have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $11.33.

Paramount Skydance Price Performance

Shares of NASDAQ:PSKY opened at $10.21 on Thursday. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.88 and a current ratio of 1.04. Paramount Skydance has a 52 week low of $7.62 and a 52 week high of $20.86. The firm has a market cap of $11.46 billion, a PE ratio of 35.21, a price-to-earnings-growth ratio of 1.01 and a beta of 1.50. The firm’s fifty day moving average is $9.73 and its 200-day moving average is $10.12.

Paramount Skydance (NASDAQ:PSKY) last announced its earnings results on Tuesday, August 4th. The company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.03. Paramount Skydance had a positive return on equity of 4.11% and a negative net margin of 2.13%.The business had revenue of $6.91 billion during the quarter. Sell-side analysts predict that Paramount Skydance will post 0.56 earnings per share for the current year.

Paramount Skydance Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be paid a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Tuesday, September 15th. Paramount Skydance’s dividend payout ratio is 68.97%.

Institutional Trading of Paramount Skydance

A number of hedge funds and other institutional investors have recently bought and sold shares of PSKY. Contrarius Group Holdings Ltd grew its holdings in Paramount Skydance by 52.9% during the fourth quarter. Contrarius Group Holdings Ltd now owns 15,088,097 shares of the company’s stock worth $202,180,000 after buying an additional 5,221,622 shares in the last quarter. MTCO Ltd. boosted its holdings in Paramount Skydance by 133.3% during the first quarter. MTCO Ltd. now owns 6,300,000 shares of the company’s stock worth $56,826,000 after purchasing an additional 3,600,000 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in Paramount Skydance by 126.3% during the first quarter. Dimensional Fund Advisors LP now owns 3,970,920 shares of the company’s stock worth $35,812,000 after purchasing an additional 2,216,433 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in Paramount Skydance in the 2nd quarter worth about $14,002,000. Finally, Palestra Capital Management LLC purchased a new stake in Paramount Skydance in the 2nd quarter valued at about $12,798,000. Institutional investors own 73.00% of the company’s stock.

More Paramount Skydance News

Here are the key news stories impacting Paramount Skydance this week:

• Positive Sentiment: The Federal Communications Commission approved foreign investment supporting Paramount Skydance’s acquisition of Warner Bros. Discovery, removing one important regulatory hurdle. However, the transaction still faces legal challenges. Reuters article on FCC approval
• Positive Sentiment: California Attorney General Rob Bonta said he remains open to settlement talks if Paramount engages in good faith. A settlement could reduce the legal overhang and improve the likelihood of the merger closing. New York Post article on settlement talks
• Positive Sentiment: Some market commentary argues that PSKY could be undervalued after a prolonged decline, offering potential upside if management executes the merger and improves the combined company’s financial performance. Yahoo Finance article on PSKY valuation
• Neutral Sentiment: Analyst views remain mixed, reflecting uncertainty over PSKY’s valuation and the risks associated with the Warner Bros. Discovery transaction. Globe and Mail analyst sentiment article
• Negative Sentiment: Barclays initiated coverage with an Underweight rating and an $8 price target, citing leverage, restructuring and execution risks tied to the proposed mega-merger. The bearish report appears to have amplified selling pressure. Barron’s article on merger risks
• Negative Sentiment: The merger remains delayed by a lawsuit involving California and other state attorneys general, leaving the closing timetable uncertain even after the FCC approval. Quiver Quantitative article on merger delays
• Negative Sentiment: Paramount Skydance has reportedly threatened to leave California amid the merger dispute. Such a move could create additional political friction, disruption and uncertainty around the company’s Hollywood operations. MSN article on Paramount leaving California

Paramount Skydance Company Profile

Paramount Skydance Corporation (NASDAQ: PSKY) is a global media and entertainment company formed through the combination of Paramount Global and Skydance Media. The company develops, produces and distributes feature films, television programming and other video content for audiences in the United States and international markets.

Its portfolio includes Paramount Pictures, CBS, Nickelodeon, MTV, Comedy Central, BET, Showtime and other well-known entertainment brands. Paramount Skydance also operates streaming services including Paramount+ and Pluto TV, as well as businesses involved in television broadcasting, news, sports and content licensing.

The company’s history includes Paramount Pictures, one of Hollywood’s longstanding film studios, and Skydance Media, a production company founded in 2010 by David Ellison.