Paramount Skydance (NASDAQ:PSKY) Shares Down 4.3% – Here’s Why

Paramount Skydance Corporation (NASDAQ:PSKY) shares were down 4.3% during trading on Thursday . The stock traded as low as $10.66 and last traded at $10.6650. 2,104,234 shares were traded during trading, a decline of 81% from the average session volume of 10,833,511 shares. The stock had previously closed at $11.14.

Key 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

Wall Street Analyst Weigh In

PSKY has been the subject of several analyst reports. 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. Arete Research restated a “sell” rating and set a $2.00 target price on shares of Paramount Skydance in a report on Thursday, July 9th. Citizens Jmp started coverage on Paramount Skydance in a research report on Monday, September 14th. They issued a “market outperform” rating and a $14.00 price target for the company. Citigroup assumed coverage on Paramount Skydance in a research note on Monday. They set an “outperform” rating for the company. Finally, Benchmark lowered their price objective on Paramount Skydance from $19.00 to $16.00 and set a “buy” 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 stock. Based on data from MarketBeat.com, Paramount Skydance currently has a consensus rating of “Reduce” and an average price target of $11.33.

Paramount Skydance Trading Down 3.9%

The company’s fifty day moving average is $9.73 and its 200-day moving average is $10.12. The company has a current ratio of 1.04, a quick ratio of 0.88 and a debt-to-equity ratio of 1.13. The firm has a market capitalization of $11.46 billion, a P/E ratio of 35.21, a P/E/G ratio of 1.01 and a beta of 1.50.

Paramount Skydance (NASDAQ:PSKY) last announced its earnings results on Tuesday, August 4th. The company reported $0.18 EPS for the quarter, topping the consensus estimate of $0.15 by $0.03. The firm 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%. As a group, sell-side analysts anticipate that Paramount Skydance Corporation will post 0.56 earnings per share for the current fiscal year.

Paramount Skydance Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders 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 dividend on an annualized basis and a dividend yield of 2.0%. Paramount Skydance’s payout ratio is presently 68.97%.

Institutional Trading of Paramount Skydance

Several hedge funds have recently added to or reduced their stakes in the business. Huntington National Bank grew its holdings in Paramount Skydance by 108.2% in the 4th quarter. Huntington National Bank now owns 2,259 shares of the company’s stock valued at $30,000 after buying an additional 1,174 shares during the last quarter. Larson Financial Group LLC lifted its holdings in shares of Paramount Skydance by 539.3% during the fourth quarter. Larson Financial Group LLC now owns 2,295 shares of the company’s stock worth $31,000 after buying an additional 1,936 shares during the last quarter. Compass Financial Management LLC bought a new stake in shares of Paramount Skydance in the second quarter valued at approximately $42,000. CX Institutional boosted its position in shares of 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 acquiring an additional 1,273 shares during the period. Finally, Pittenger & Anderson Inc. grew its stake in shares of Paramount Skydance by 18.0% in the first quarter. Pittenger & Anderson Inc. now owns 6,560 shares of the company’s stock worth $59,000 after acquiring an additional 1,000 shares during the last quarter. 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.