Lionsgate Studios (NYSE:LION) Shares Gap Up – Should You Buy?

Shares of Lionsgate Studios Corp. (NYSE:LION) gapped up before the market opened on Wednesday . The stock had previously closed at $13.29, but opened at $14.25. Lionsgate Studios shares last traded at $14.21, with a volume of 1,365,528 shares.

Lionsgate Studios News Summary

Here are the key news stories impacting Lionsgate Studios this week:

• Positive Sentiment: Lionsgate Studios is reportedly exploring strategic alternatives, including a possible sale, which has fueled investor interest in a potential takeover premium. Lionsgate Studios said to explore sale amid MA wave, Reuters Reports
• Positive Sentiment: Multiple reports say European media groups are circling Lionsgate Studios, with Banijay, Bolloré, and Mediawan among the names mentioned as possible bidders. Lionsgate Studios draws European takeover interest
• Positive Sentiment: Shares surged on Wednesday after acquisition interest surfaced, highlighting how takeover speculation is the main near-term catalyst for the stock. Why Is Lionsgate Studios Stock Surging on Wednesday?
• Neutral Sentiment: A Zacks note says the stock’s recent jump came on higher-than-average volume, but warns that earnings estimate revisions may not support additional upside in the near term. Lionsgate Studios Corp. (LION) Moves 5.0% Higher: Will This Strength Last?
• Negative Sentiment: The recent run-up may be vulnerable if takeover talks fail to progress, since the move is being driven largely by speculation rather than confirmed deal terms. Lionsgate Could Be Officially In Play

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on LION shares. Seaport Research Partners reissued a “buy” rating and issued a $16.00 price target on shares of Lionsgate Studios in a report on Friday, May 22nd. Raymond James Financial restated an “outperform” rating and set a $15.00 price objective on shares of Lionsgate Studios in a report on Friday, May 22nd. Wall Street Zen downgraded Lionsgate Studios from a “buy” rating to a “hold” rating in a research report on Saturday, June 13th. Citigroup cut Lionsgate Studios from a “buy” rating to a “neutral” rating and lifted their price target for the stock from $11.00 to $12.60 in a report on Monday, April 20th. Finally, B. Riley Financial started coverage on Lionsgate Studios in a research note on Wednesday, July 1st. They issued a “neutral” rating and a $17.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $15.57.

Lionsgate Studios Stock Down 2.9%

The firm has a 50 day simple moving average of $14.03 and a two-hundred day simple moving average of $11.27. The stock has a market capitalization of $3.94 billion, a P/E ratio of -18.83 and a beta of 0.64.

Institutional Investors Weigh In On Lionsgate Studios

Several hedge funds and other institutional investors have recently made changes to their positions in LION. Herbst Group LLC bought a new stake in Lionsgate Studios during the 4th quarter worth $1,649,000. Union Square Park Capital Management LLC raised its position in Lionsgate Studios by 39.6% in the fourth quarter. Union Square Park Capital Management LLC now owns 300,000 shares of the company’s stock valued at $2,739,000 after purchasing an additional 85,100 shares during the last quarter. Jericho Capital Asset Management L.P. bought a new position in Lionsgate Studios in the fourth quarter valued at about $51,119,000. Irenic Capital Management LP acquired a new stake in shares of Lionsgate Studios during the fourth quarter valued at about $871,000. Finally, AXQ Capital LP acquired a new stake in shares of Lionsgate Studios during the fourth quarter valued at about $371,000.

About Lionsgate Studios

Lionsgate Studios, operating under the ticker NYSE:LION, is a leading global entertainment company specializing in the production, acquisition and distribution of motion pictures, television programming and digital content. Headquartered in Santa Monica, California, and with additional operations in Vancouver, the company develops, finances and markets feature films that span a wide range of genres—from major franchise hits like The Hunger Games and John Wick to independent and specialty titles.