Barclays Upgrades Paramount Skydance (NASDAQ:PSKY) to “Strong Sell”

Paramount Skydance (NASDAQ:PSKY) was upgraded by equities research analysts at Barclays to a “strong sell” rating in a research report issued to clients and investors on Thursday, Zacks reports.

Several other equities research analysts have also recently weighed in on PSKY. Citigroup began coverage on Paramount Skydance in a research note on Monday. They set an “outperform” rating for the company. Weiss Ratings upgraded shares of Paramount Skydance from a “sell (d-)” rating to a “sell (d)” rating in a research note on Thursday, August 6th. TD Cowen cut their price objective on shares of Paramount Skydance from $13.00 to $8.00 and set a “hold” rating on the stock in a report on Wednesday, August 5th. Citizens Jmp began coverage on shares of Paramount Skydance in a research report on Monday, September 14th. They set a “market outperform” rating and a $14.00 price objective for the company. Finally, UBS Group lowered their target price on shares of Paramount Skydance from $10.00 to $8.00 and set a “sell” rating for the company in a report on Wednesday, August 5th. Four equities research 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. Based on data from MarketBeat, Paramount Skydance has a consensus rating of “Reduce” and a consensus price target of $11.33.

Paramount Skydance Stock Performance

Shares of PSKY stock opened at $10.21 on Thursday. The company has a quick ratio of 0.88, a current ratio of 1.04 and a debt-to-equity ratio of 1.13. Paramount Skydance has a 52 week low of $7.62 and a 52 week high of $20.86. The stock has a market capitalization of $11.46 billion, a PE ratio of 35.21, a P/E/G ratio of 1.01 and a beta of 1.50. The firm has a 50 day moving average of $9.73 and a two-hundred day moving average of $10.12.

Paramount Skydance (NASDAQ:PSKY) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.18 earnings per share for the quarter, topping analysts’ consensus estimates of $0.15 by $0.03. Paramount Skydance had a positive return on equity of 4.11% and a negative net margin of 2.13%.The business had revenue of $6.91 billion for the quarter. On average, research analysts predict that Paramount Skydance will post 0.56 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC acquired a new position in Paramount Skydance during the second quarter worth approximately $75,000. IFP Advisors Inc boosted its holdings in shares of Paramount Skydance by 11.6% in the second quarter. IFP Advisors Inc now owns 50,934 shares of the company’s stock valued at $502,000 after acquiring an additional 5,294 shares during the period. Arizona State Retirement System boosted its holdings in shares of Paramount Skydance by 1.2% in the second quarter. Arizona State Retirement System now owns 89,455 shares of the company’s stock valued at $882,000 after acquiring an additional 1,077 shares during the period. Nykredit A S purchased a new position in shares of Paramount Skydance during the second quarter worth approximately $150,000. Finally, Brown Financial Advisors purchased a new position in shares of Paramount Skydance during the second quarter worth approximately $175,000. Hedge funds and other institutional investors own 73.00% of the company’s stock.

Key Stories Impacting Paramount Skydance

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

About Paramount Skydance

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.