Sphere Entertainment (NYSE:SPHR) Shares Climb 8.7% – Here’s Why

Sphere Entertainment Co. (NYSE:SPHR)’s share price rose 8.7% during mid-day trading on Thursday. The company traded as high as $118.39 and last traded at $118.2860. 566,085 shares traded hands during trading, a decline of 27% from the average daily volume of 777,911 shares. The stock had previously closed at $108.85.

Key Headlines Impacting Sphere Entertainment

Here are the key news stories impacting Sphere Entertainment this week:

• Positive Sentiment: Strong ticket sales at Sphere: “The Wizard of Oz” exceeded $500 million in ticket sales, with more than four million tickets sold since its August debut. The company also introduced expanded 4D effects, supporting the potential for continued audience demand. Sphere Entertainment Q3 results
• Positive Sentiment: Revenue topped expectations: Q3 revenue was $274.26 million, above analyst estimates of about $269.7 million and up 4.5% year over year. Zacks also reported a per-share loss of $0.98, narrower than its consensus estimate of a $1.79 loss. Zacks Q3 earnings report
• Positive Sentiment: Guggenheim remains bullish: The firm cut its price target from $180 to $175 but maintained a Buy rating, implying substantial upside from the then-current price. The target reduction tempers, but does not reverse, the favorable stance. Guggenheim price-target update
• Negative Sentiment: Reported loss was a concern: Other earnings coverage cited a loss of $4.84 per share, far worse than the $1.66 consensus estimate. This contrasts with the narrower loss cited by Zacks, suggesting results varied across reported earnings measures and may have weighed on sentiment. Coverage of Sphere’s wider Q3 loss

Analysts Set New Price Targets

A number of equities analysts have commented on SPHR shares. The Goldman Sachs Group reissued a “buy” rating and issued a $150.00 price objective on shares of Sphere Entertainment in a research note on Friday. Citigroup reaffirmed a “market outperform” rating on shares of Sphere Entertainment in a report on Tuesday, October 6th. New Street Research set a $188.00 price target on shares of Sphere Entertainment in a report on Tuesday, July 14th. BTIG Research reduced their price objective on Sphere Entertainment from $160.00 to $145.00 and set a “buy” rating on the stock in a research note on Friday. Finally, Guggenheim reduced their price objective on Sphere Entertainment from $180.00 to $175.00 and set a “buy” rating on the stock in a research note on Friday. Eleven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $156.87.

Sphere Entertainment Price Performance

The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.32. The company has a market capitalization of $4.31 billion, a PE ratio of -25.44 and a beta of 1.72. The firm’s 50 day simple moving average is $124.43 and its 200 day simple moving average is $130.43.

Sphere Entertainment (NYSE:SPHR) last announced its earnings results on Thursday, November 5th. The company reported ($4.84) earnings per share for the quarter, missing the consensus estimate of ($1.66) by ($3.18). The firm had revenue of $274.26 million during the quarter, compared to analysts’ expectations of $269.71 million. Sphere Entertainment had a negative net margin of 6.19% and a negative return on equity of 1.38%. The company’s revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the company posted ($2.80) EPS. As a group, research analysts anticipate that Sphere Entertainment Co. will post -2.70 EPS for the current fiscal year.

Institutional Trading of Sphere Entertainment

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Assenagon Asset Management S.A. boosted its position in shares of Sphere Entertainment by 114.2% during the third quarter. Assenagon Asset Management S.A. now owns 871,484 shares of the company’s stock valued at $117,162,000 after buying an additional 464,609 shares during the period. Renaissance Technologies LLC raised its holdings in shares of Sphere Entertainment by 149.9% in the first quarter. Renaissance Technologies LLC now owns 559,935 shares of the company’s stock worth $65,736,000 after buying an additional 335,900 shares during the period. Healthcare of Ontario Pension Plan Trust Fund raised its holdings in shares of Sphere Entertainment by 24.8% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 523,934 shares of the company’s stock worth $61,510,000 after buying an additional 104,192 shares during the period. Artemis Investment Management LLP lifted its stake in shares of Sphere Entertainment by 118.9% during the 3rd quarter. Artemis Investment Management LLP now owns 447,982 shares of the company’s stock worth $60,227,000 after acquiring an additional 243,376 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its stake in shares of Sphere Entertainment by 75.4% during the 1st quarter. Bank of New York Mellon Corp now owns 146,782 shares of the company’s stock worth $17,232,000 after acquiring an additional 63,080 shares during the last quarter. 92.03% of the stock is owned by hedge funds and other institutional investors.

About Sphere Entertainment

Sphere Entertainment Co is an entertainment and media company focused on immersive live experiences and sports and entertainment programming. Its principal asset is Sphere, a next-generation venue in Las Vegas featuring a large exterior LED display, a high-resolution interior screen, advanced audio technology and immersive production capabilities.

Sphere presents concerts, residencies, films and other experiences, while its Sphere Studios business develops original content and technology for the venue and other immersive applications.