Skydance (NYSE:SKYD) Stock Falls 9.5% Following Analyst Downgrade

Shares of Skydance Corporation (NYSE:SKYD) dropped 9.5% during trading on Tuesday after Citizens Jmp lowered their price target on the stock from $14.00 to $13.00. Citizens Jmp currently has a market outperform rating on the stock. Skydance traded as low as $7.75 and last traded at $7.87. Approximately 5,782,452 shares traded hands during trading, a decline of 60% from the average session volume of 14,567,237 shares. The stock had previously closed at $8.70.

Other analysts also recently issued reports about the stock. Roth Capital started coverage on shares of Skydance in a research note on Friday, October 23rd. They issued a “buy” rating for the company. Piper Sandler lowered Skydance to a “neutral” rating in a research note on Friday, October 23rd. Stephens raised Skydance from a “buy” rating to an “overweight” rating in a research note on Friday, October 23rd. Cantor Fitzgerald initiated coverage on Skydance in a report on Friday, October 23rd. They set an “overweight” rating for the company. Finally, Citigroup started coverage on Skydance in a research note on Monday, October 26th. They set a “buy” rating and a $10.00 price objective for the company. Ten analysts have rated the stock with a Buy rating, seven have issued a Hold rating and seven have issued a Sell rating to the stock. According to MarketBeat, Skydance presently has an average rating of “Hold” and an average price target of $6.42.

Key Headlines Impacting Skydance

Here are the key news stories impacting Skydance this week:

• Positive Sentiment: Skydance reported third-quarter adjusted earnings of $0.45 per share, ahead of the $0.18 consensus estimate. Revenue of $7.03 billion was slightly below expectations of $7.07 billion. The results covered the period before the Warner Bros. Discovery acquisition closed. Earnings results
• Positive Sentiment: Management outlined more than $6 billion in targeted cost savings over three years through consolidating operations, reducing technology costs, and eliminating management layers. If achieved, the cuts could help offset integration costs and support profitability. Cost savings plan
• Positive Sentiment: The company plans to bundle Paramount+ with HBO Max early next year, aiming to strengthen its streaming offering. Paramount+ revenue rose 21% in the third quarter, providing a recent growth signal for the business. Streaming bundle plans
• Neutral Sentiment: Skydance named Marvel veteran Jeremy Latcham to lead DC Studios after James Gunn and Peter Safran depart. A leadership change could reshape the studio’s creative direction; reports also cite tensions between Gunn and Skydance executives, making the transition a potential execution risk. DC Studios leadership change
• Negative Sentiment: Reports say the Warner Bros. film slate could reduce fourth-quarter profit by about $200 million. Skydance also faces an approximately $87 billion debt burden following the deal, raising the importance of successful cost cuts and growth initiatives. Warner slate and profit impact Debt burden

Institutional Investors Weigh In On Skydance

Hedge funds have recently made changes to their positions in the company. Pittenger & Anderson Inc. increased its holdings in shares of Skydance by 18.0% in the first quarter. Pittenger & Anderson Inc. now owns 6,560 shares of the media and entertainment company’s stock worth $59,000 after purchasing an additional 1,000 shares during the last quarter. New Mexico Educational Retirement Board boosted its stake in Skydance by 6.9% during the second quarter. New Mexico Educational Retirement Board now owns 15,499 shares of the media and entertainment company’s stock valued at $153,000 after buying an additional 1,000 shares during the last quarter. Arizona State Retirement System boosted its stake in Skydance by 1.2% during the second quarter. Arizona State Retirement System now owns 89,455 shares of the media and entertainment company’s stock valued at $882,000 after buying an additional 1,077 shares during the last quarter. CX Institutional grew its holdings in Skydance by 38.1% during the 2nd quarter. CX Institutional now owns 4,612 shares of the media and entertainment company’s stock valued at $45,000 after buying an additional 1,273 shares in the last quarter. Finally, Kestra Advisory Services LLC grew its holdings in Skydance by 14.6% during the 1st quarter. Kestra Advisory Services LLC now owns 14,130 shares of the media and entertainment company’s stock valued at $127,000 after buying an additional 1,805 shares in the last quarter. 73.00% of the stock is currently owned by institutional investors.

Skydance Price Performance

The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.88 and a current ratio of 1.04. The firm has a fifty day simple moving average of $6.74 and a two-hundred day simple moving average of $5.52. The firm has a market cap of $8.90 billion, a PE ratio of 27.34 and a beta of 1.64.

Skydance (NYSE:SKYD) last issued its quarterly earnings data on Monday, November 9th. The media and entertainment company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.27. The business had revenue of $7.03 billion for the quarter, compared to analysts’ expectations of $7.07 billion. Skydance had a positive return on equity of 4.11% and a negative net margin of 2.13%. Equities analysts predict that Skydance Corporation will post -0.08 EPS for the current fiscal year.

Skydance Company Profile

Skydance Corporation is a global media and entertainment company formerly known as Paramount Skydance Corporation.