Paramount Skydance (NASDAQ:PSKY) Stock Price Down 7% – Here’s Why

Paramount Skydance Corporation (NASDAQ:PSKY)’s stock price was down 7% during trading on Thursday. The stock traded as low as $9.64 and last traded at $9.6050. Approximately 16,689,570 shares changed hands during mid-day trading, an increase of 36% from the average session volume of 12,255,263 shares. The stock had previously closed at $10.33.

Key Headlines Impacting Paramount Skydance

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

• Positive Sentiment: A U.S. judge approved the settlement with state attorneys general, removing the final major legal obstacle to Paramount’s acquisition of Warner Bros. Discovery. The companies expect the transaction to close on October 6. U.S. judge allows Paramount to close Warner Bros acquisition
• Positive Sentiment: Paramount Skydance priced approximately $41.4 billion of dollar senior secured notes, €885 million of euro notes, and term-loan facilities to fund the Warner Bros. Discovery deal. Completing the financing reduces transaction uncertainty. Paramount Skydance announces debt offering pricing
• Positive Sentiment: Mattel’s former CEO Ynon Kreiz was named co-CEO of the combined company. He will oversee day-to-day operations and integration, while David Ellison retains responsibility for strategy, creative and technology. David Ellison names Ynon Kreiz co-CEO
• Neutral Sentiment: Paramount leadership asked CNN CEO Mark Thompson to remain after the merger closes, while Bari Weiss is not expected to take a CNN role. The report provides management clarity but does not immediately change the company’s financial outlook. Ellison asks CNN CEO to stay
• Neutral Sentiment: PSKY shares are scheduled to undergo a two-for-one split on October 5. The split changes the share count and per-share price mechanically but does not alter the company’s underlying value. Paramount Skydance stock split
• Negative Sentiment: The newly issued Paramount bonds traded lower, with some yields rising above 10%, amid higher Treasury yields and wider high-yield credit spreads. The move signals elevated investor concerns about the combined company’s credit risk and financing burden. Paramount bonds yield over 10%
• Negative Sentiment: The Warner Bros. Discovery transaction requires a massive debt package, increasing leverage and interest expense just as Paramount prepares for a complex integration. Investors appear focused on execution risk and whether anticipated synergies can offset the higher financial obligations. Paramount launches debt offerings
• Negative Sentiment: Unusually heavy purchases of PSKY put options indicate that some traders are positioning for further weakness or seeking downside protection. High volume of put options on Paramount Skydance

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on PSKY. TD Cowen decreased their price target on shares of Paramount Skydance from $13.00 to $8.00 and set a “hold” rating for the company in a report on Wednesday, August 5th. Benchmark decreased their target price on Paramount Skydance from $19.00 to $16.00 and set a “buy” rating for the company in a research note on Wednesday, August 5th. Morgan Stanley increased their price target on Paramount Skydance from $10.00 to $11.50 and gave the stock an “overweight” rating in a report on Tuesday, September 22nd. Arete Research reaffirmed a “sell” rating and set a $2.00 price target on shares of Paramount Skydance in a research report on Thursday, July 9th. Finally, UBS Group cut their price objective on Paramount Skydance from $10.00 to $8.00 and set a “sell” rating on the stock in a report on Wednesday, August 5th. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and nine have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $11.17.

Paramount Skydance Stock Performance

The stock’s 50 day moving average is $9.91 and its two-hundred day moving average is $10.04. The stock has a market capitalization of $10.73 billion, a price-to-earnings ratio of 33.04, a price-to-earnings-growth ratio of 1.06 and a beta of 1.50. The company has a current ratio of 1.04, a quick ratio of 0.88 and a debt-to-equity ratio of 1.13.

Paramount Skydance shares are going to split on the morning of Monday, October 5th. The 2-1 split was recently announced. The newly issued shares will be issued to shareholders after the market closes on Sunday, October 4th.

Paramount Skydance (NASDAQ:PSKY) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.03. The company had revenue of $6.91 billion during the quarter. Paramount Skydance had a positive return on equity of 4.11% and a negative net margin of 2.13%. Analysts expect that Paramount Skydance Corporation will post 0.5 earnings per share for the current fiscal year.

Paramount Skydance Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be paid a $0.05 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $0.20 annualized dividend and a yield of 2.1%. Paramount Skydance’s payout ratio is presently 68.97%.

Hedge Funds Weigh In On Paramount Skydance

Hedge funds have recently made changes to their positions in the business. Huntington National Bank lifted its position in shares of Paramount Skydance by 108.2% in the fourth quarter. Huntington National Bank now owns 2,259 shares of the company’s stock worth $30,000 after purchasing an additional 1,174 shares in the last quarter. Compass Financial Management LLC bought a new position in shares of Paramount Skydance in the 2nd quarter valued at about $42,000. Global Retirement Partners LLC grew its holdings in shares of Paramount Skydance by 357.5% in the 4th quarter. Global Retirement Partners LLC now owns 4,479 shares of the company’s stock valued at $60,000 after acquiring an additional 3,500 shares in the last quarter. CX Institutional grew its stake in Paramount Skydance by 38.1% in the second quarter. CX Institutional now owns 4,612 shares of the company’s stock valued at $45,000 after purchasing an additional 1,273 shares in the last quarter. Finally, Eurizon Capital SGR S.p.A. acquired a new position in Paramount Skydance during the fourth quarter worth $65,000. 73.00% of the stock is owned by institutional investors.

Paramount Skydance Company Profile

Paramount Skydance Corporation (NASDAQ: PSKY) is a global media and entertainment company formed through the 2025 combination of Paramount Global and Skydance Media. The company develops, produces, and distributes feature films, television programming, live news, sports, and other entertainment content for audiences worldwide.

Its portfolio includes Paramount Pictures, CBS, Paramount+, Pluto TV, and a range of cable and international television networks. The company’s content and brands include film franchises, scripted and unscripted television programs, news and sports broadcasts, streaming video, and ad-supported digital entertainment.

Paramount Skydance serves viewers in the United States and international markets through theatrical releases, broadcast television, pay television, streaming platforms, digital services, and licensing arrangements.