Paramount Skydance (NASDAQ:PSKY) Stock Price Down 7% – Here’s What Happened

Paramount Skydance Corporation (NASDAQ:PSKY)’s stock price dropped 7% on Thursday. The company traded as low as $9.64 and last traded at $9.6050. Approximately 16,689,570 shares traded hands during mid-day trading, an increase of 36% from the average session volume of 12,255,263 shares. The stock had previously closed at $10.33.

Paramount Skydance News Roundup

Here are the key news stories impacting Paramount Skydance this week:

• Positive Sentiment: Warner Bros. Discovery merger is nearing completion. The transaction is expected to close on October 6 after Paramount Skydance cleared the remaining antitrust-related hurdles. Completion would create a much larger media company with a broader portfolio of film, television and streaming assets. Paramount Skydance and Warner Bros. Discovery merger closing date
• Positive Sentiment: Management is emphasizing cost discipline. The appointment of Mattel CEO Ynon Kreiz as a senior leader signals a focus on reducing costs and improving profitability, which could help the combined company generate more cash from its franchises. David Ellison appoints Ynon Kreiz
• Neutral Sentiment: The combined company will be called Skydance. CEO David Ellison announced that Paramount and Warner Bros. Discovery will operate under the Skydance name following the merger. The rebranding may support a unified corporate identity, although investors may view the replacement of two iconic Hollywood names as a potential brand risk. Paramount and Warner Bros. Discovery to become Skydance
• Neutral Sentiment: Paramount Skydance’s two-for-one stock split is scheduled for October 5. The split will increase the number of shares outstanding while proportionally reducing the per-share price; it does not change the company’s underlying value. Paramount Skydance stock split
• Negative Sentiment: Merger financing is the main concern. Paramount Skydance priced approximately $41.4 billion of senior secured notes and additional term loans, with coupon rates reaching as high as 8.90%. The resulting debt burden and borrowing costs are weighing on the stock because they could limit cash flow, increase refinancing risk and make integration more difficult. Paramount Skydance debt offerings
• Negative Sentiment: Investors also face possible dilution and execution risk. Paramount shareholders are expected to receive stock warrants as part of the financing, while the company must integrate Warner Bros. Discovery and deliver cost savings amid high leverage. Paramount shareholders to receive stock warrants

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on PSKY shares. Weiss Ratings upgraded shares of Paramount Skydance from a “sell (d-)” rating to a “sell (d)” rating in a report on Thursday, August 6th. Citigroup started coverage on Paramount Skydance in a research note on Monday, September 14th. They issued an “outperform” rating on the stock. Barclays initiated coverage on Paramount Skydance in a research report on Thursday, September 17th. They set an “underweight” rating and a $8.00 price objective for the company. UBS Group dropped their target price on Paramount Skydance from $10.00 to $8.00 and set a “sell” rating on the stock in a report on Wednesday, August 5th. Finally, TD Cowen reduced their price target on Paramount Skydance from $13.00 to $8.00 and set a “hold” rating for the company in a report on Wednesday, August 5th. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and nine have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average target price of $11.17.

Paramount Skydance Trading Up 1.7%

The firm has a market capitalization of $10.66 billion, a PE ratio of 32.76, a P/E/G ratio of 1.00 and a beta of 1.53. The firm has a 50 day simple moving average of $9.95 and a 200 day simple moving average of $10.03. The company has a current ratio of 1.04, a quick ratio of 0.88 and a debt-to-equity ratio of 1.13.

Paramount Skydance shares are going to split on Monday, October 5th. The 2-1 split was recently announced. The newly minted shares will be distributed to shareholders after the market closes on Sunday, October 4th.

Paramount Skydance (NASDAQ:PSKY) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.18 EPS for the quarter, beating the consensus estimate 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 company had revenue of $6.91 billion for the quarter. Equities analysts expect that Paramount Skydance Corporation will post 0.5 earnings per share for the current fiscal year.

Paramount Skydance Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 15th were given a dividend of $0.05 per share. The ex-dividend date was Tuesday, September 15th. This represents a $0.20 dividend on an annualized basis and a yield of 2.1%. Paramount Skydance’s dividend payout ratio is 68.97%.

Institutional Investors Weigh In On Paramount Skydance

A number of hedge funds have recently added to or reduced their stakes in PSKY. Bank of New York Mellon Corp bought a new stake in shares of Paramount Skydance in the second quarter worth $14,002,000. Gradient Investments LLC bought a new position in Paramount Skydance in the second quarter valued at about $2,062,000. Palestra Capital Management LLC purchased a new position in Paramount Skydance in the second quarter worth about $12,798,000. Wellington Management Group LLP purchased a new position in Paramount Skydance in the second quarter worth about $3,231,000. Finally, Financiere des Professionnels Fonds d investissement inc. bought a new stake in shares of Paramount Skydance during the 1st quarter valued at about $1,623,000. 73.00% of the stock is currently owned by hedge funds and other institutional investors.

Paramount Skydance Company Profile

Paramount Skydance Corporation (NASDAQ: PSKY) is a global media and entertainment company formed through the 2025 combination of Paramount Global and Skydance Media. The company develops, produces, and distributes feature films, television programming, live news, sports, and other entertainment content for audiences worldwide.

Its portfolio includes Paramount Pictures, CBS, Paramount+, Pluto TV, and a range of cable and international television networks. The company’s content and brands include film franchises, scripted and unscripted television programs, news and sports broadcasts, streaming video, and ad-supported digital entertainment.

Paramount Skydance serves viewers in the United States and international markets through theatrical releases, broadcast television, pay television, streaming platforms, digital services, and licensing arrangements.