Paramount Skydance (NASDAQ:PSKY) Trading Up 10% – Should You Buy?

Paramount Skydance Corporation (NASDAQ:PSKY) was up 10% on Monday . The stock traded as high as $10.90 and last traded at $11.2280. 1,650,163 shares traded hands during trading, a decline of 85% from the average session volume of 11,312,275 shares. The stock had previously closed at $10.21.

Paramount Skydance News Summary

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

• Positive Sentiment: Paramount Skydance settled antitrust litigation with attorneys general from 12 states, clearing the main regulatory hurdle to its approximately $110 billion acquisition of Warner Bros. Discovery. Management expects the transaction to close around September 30, avoiding a ticking fee of roughly $7 million per day. Reuters merger settlement article
• Positive Sentiment: The combination would create a much larger media company with approximately $66 billion in annual revenue and combine the Paramount+ and Max streaming platforms. Supporters expect greater content scale, improved distribution and potential cost efficiencies. MarketBeat merger analysis
• Positive Sentiment: Citizens JMP reaffirmed a “market outperform” rating and set a $14 price target, implying substantial upside from recent trading levels. Citizens JMP rating report
• Neutral Sentiment: Paramount agreed to concessions including $1.5 billion of domestic production investment over five years, theatrical release commitments, continued operation of major studio lots, independent oversight for CBS News and CNN, and funding for entertainment workers. These obligations may protect content capacity but also restrict potential cost reductions.
• Neutral Sentiment: The company extended deadlines for debt exchange and tender offers to October 2 as it prepares for the transaction. The extension provides more time to manage financing, but highlights the complexity of refinancing the combined company’s substantial liabilities. Paramount debt offer announcement
• Negative Sentiment: UBS maintained its “sell” rating, reflecting concerns about the deal’s roughly $80 billion of expected debt, integration risks and the concessions required to secure approval. PSKY’s shares have consequently underperformed Warner Bros. Discovery despite the legal breakthrough. UBS rating report
• Negative Sentiment: Reports of possible layoffs and internal competition at CNN and across the two companies are adding uncertainty around employee retention and merger execution. New York Post CNN merger article

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on PSKY. Citizens Jmp restated a “market outperform” rating and issued a $14.00 price target on shares of Paramount Skydance in a research report on Tuesday. Weiss Ratings upgraded shares of Paramount Skydance from a “sell (d-)” rating to a “sell (d)” rating in a research report on Thursday, August 6th. Benchmark reduced their target price on shares of Paramount Skydance from $19.00 to $16.00 and set a “buy” rating on the stock in a research note on Wednesday, August 5th. Citigroup assumed coverage on shares of Paramount Skydance in a research note on Monday, September 14th. They issued an “outperform” rating on the stock. Finally, Arete Research restated a “sell” rating and issued a $2.00 target price on shares of Paramount Skydance in a report on Thursday, July 9th. Four analysts have rated the stock with a Buy rating, five have assigned a Hold rating and nine have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and an average target price of $11.17.

Paramount Skydance Trading Up 2.0%

The stock has a fifty day moving average of $9.76 and a 200-day moving average of $10.07. The company has a market cap of $11.34 billion, a PE ratio of 34.86, a PEG ratio of 0.94 and a beta of 1.50. 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 (NASDAQ:PSKY) last issued its earnings results on Tuesday, August 4th. The company reported $0.18 EPS for the quarter, topping analysts’ consensus estimates of $0.15 by $0.03. The business had revenue of $6.91 billion for the quarter. Paramount Skydance had a negative net margin of 2.13% and a positive return on equity of 4.11%. Sell-side analysts anticipate that Paramount Skydance Corporation will post 0.56 EPS for the current fiscal year.

Paramount Skydance Announces Dividend

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

Institutional Investors Weigh In On Paramount Skydance

Several large investors have recently modified their holdings of PSKY. Contrarius Group Holdings Ltd boosted its stake in shares of Paramount Skydance by 52.9% during the fourth quarter. Contrarius Group Holdings Ltd now owns 15,088,097 shares of the company’s stock valued at $202,180,000 after purchasing an additional 5,221,622 shares in the last quarter. MTCO Ltd. lifted its holdings in Paramount Skydance by 21.4% during the second quarter. MTCO Ltd. now owns 7,650,000 shares of the company’s stock worth $75,429,000 after buying an additional 1,350,000 shares during the period. Dimensional Fund Advisors LP boosted its position in Paramount Skydance by 126.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,970,920 shares of the company’s stock valued at $35,812,000 after acquiring an additional 2,216,433 shares in the last quarter. LTS Liquid Investments LLC boosted its position in Paramount Skydance by 68.7% during the 1st quarter. LTS Liquid Investments LLC now owns 2,030,591 shares of the company’s stock valued at $18,316,000 after acquiring an additional 827,248 shares in the last quarter. Finally, SG Americas Securities LLC increased its holdings in shares of Paramount Skydance by 106.4% in the 1st quarter. SG Americas Securities LLC now owns 1,597,902 shares of the company’s stock valued at $14,413,000 after acquiring an additional 823,629 shares during the period. Institutional investors own 73.00% of the company’s stock.

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.