According to Zacks, “Lions Gate reported better-than-expected first-quarter fiscal 2017 results, wherein both the top and bottom line beat the Zacks Consensus Estimate for the second straight quarter. Sturdy performance came on the back of a surge in Motion Pictures’ and International revenues. Further, in an effort, to enhance its competitive position, maximize return and build a diversified portfolio, Lions Gate announced the acquisition of media and entertainment company Starz for $4.4 billion. After the completion of the deal, the company expects more than $200 million in annual cash savings. We believe that the addition of Starz will not only help the company become a major player in the TV space but will also help it to recover some of its lost ground in streaming network. On the other hand, the motion picture industry is highly competitive. Hence, Lions Gate has to continually strive to maintain their share of box office receipts.”
LGF has been the subject of several other research reports. S&P Equity Research restated a buy rating on shares of Lions Gate Entertainment Corp. in a research note on Thursday, June 30th. B. Riley restated a buy rating and issued a $30.00 target price on shares of Lions Gate Entertainment Corp. in a research note on Tuesday, July 5th. FBR & Co raised their target price on Lions Gate Entertainment Corp. from $23.00 to $25.00 and gave the stock an outperform rating in a research note on Friday, July 1st. Brean Capital started coverage on Lions Gate Entertainment Corp. in a research note on Tuesday, September 6th. They issued a buy rating and a $27.00 target price for the company. Finally, Sanford C. Bernstein reiterated a market perform rating on shares of Lions Gate Entertainment Corp. in a research report on Sunday, September 4th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and fifteen have given a buy rating to the stock. The company currently has a consensus rating of Buy and an average target price of $28.31.
Shares of Lions Gate Entertainment Corp. (NYSE:LGF) opened at 18.58 on Wednesday. Lions Gate Entertainment Corp. has a one year low of $16.21 and a one year high of $41.41. The company has a market capitalization of $2.74 billion, a PE ratio of 261.69 and a beta of 1.30. The company has a 50-day moving average price of $20.42 and a 200 day moving average price of $20.68.
Lions Gate Entertainment Corp. (NYSE:LGF) last issued its earnings results on Thursday, August 4th. The company reported $0.19 EPS for the quarter, topping the consensus estimate of ($0.17) by $0.36. Lions Gate Entertainment Corp. had a return on equity of 5.81% and a net margin of 0.43%. The business earned $553.60 million during the quarter, compared to the consensus estimate of $494.34 million. During the same quarter last year, the company earned $0.31 EPS. The firm’s revenue was up 35.4% compared to the same quarter last year. Equities analysts anticipate that Lions Gate Entertainment Corp. will post $0.40 EPS for the current year.
In related news, CEO Jon Feltheimer sold 255,718 shares of Lions Gate Entertainment Corp. stock in a transaction that occurred on Thursday, September 15th. The stock was sold at an average price of $20.25, for a total transaction of $5,178,289.50. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Gordon Crawford purchased 50,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 9th. The shares were purchased at an average price of $21.70 per share, for a total transaction of $1,085,000.00. The disclosure for this purchase can be found here. Corporate insiders own 30.40% of the company’s stock.
Large investors have recently added to or reduced their stakes in the stock. Fairpointe Capital LLC purchased a new stake in Lions Gate Entertainment Corp. during the first quarter valued at $96,088,000. Primecap Management Co. CA bought a new stake in Lions Gate Entertainment Corp. during the second quarter valued at approximately $70,502,000. Westfield Capital Management Co. LP bought a new stake in Lions Gate Entertainment Corp. during the second quarter valued at approximately $17,857,000. Point72 Asset Management L.P. bought a new stake in Lions Gate Entertainment Corp. during the second quarter valued at approximately $12,397,000. Finally, Sarbit Advisory Services Inc. increased its stake in Lions Gate Entertainment Corp. by 52.2% in the second quarter. Sarbit Advisory Services Inc. now owns 1,457,500 shares of the company’s stock valued at $29,485,000 after buying an additional 500,000 shares during the period. Institutional investors own 96.12% of the company’s stock.
About Lions Gate Entertainment Corp.
Lions Gate Entertainment Corp. is engaged in motion picture production and distribution, television programming and syndication, home entertainment, international distribution and sales, branded channel platforms, interactive ventures and games and location-based entertainment. The Company operates through two segments: Motion Pictures and Television Production.
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