Sphere Entertainment (NYSE:SPHR) Shares Gap Down After Analyst Downgrade

Shares of Sphere Entertainment Co. (NYSE:SPHR) gapped down prior to trading on Monday after Craig Hallum downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $128.25, but opened at $120.99. Craig Hallum now has a $132.00 price target on the stock. Sphere Entertainment shares last traded at $113.4850, with a volume of 446,378 shares.

Several other brokerages also recently weighed in on SPHR. Piper Sandler began coverage on Sphere Entertainment in a research note on Thursday, August 20th. They set an “overweight” rating and a $185.00 target price on the stock. Weiss Ratings lowered Sphere Entertainment from a “hold (c)” rating to a “sell (d-)” rating in a report on Friday. Citigroup restated a “market outperform” rating on shares of Sphere Entertainment in a research note on Tuesday, September 1st. Seaport Research Partners reaffirmed a “buy” rating and issued a $191.00 price objective on shares of Sphere Entertainment in a report on Thursday, August 13th. Finally, BTIG Research reiterated a “buy” rating on shares of Sphere Entertainment in a research report on Monday, September 28th. Eleven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Sphere Entertainment presently has an average rating of “Moderate Buy” and an average target price of $168.29.

More Sphere Entertainment News

Here are the key news stories impacting Sphere Entertainment this week:

• Positive Sentiment: Unusually heavy options activity provided a limited bullish signal, with investors purchasing 9,775 call options—far above the typical daily volume. However, options activity does not necessarily indicate a change in the company’s fundamentals.
• Neutral Sentiment: Craig-Hallum’s new $132 target remains above the stock’s referenced trading level, implying potential upside despite the more cautious Hold rating. Craig-Hallum downgrade and price-target update
• Negative Sentiment: Analysts said demand for Sphere’s “The Wizard of Oz” attraction is softening faster than expected, raising concerns about attendance, revenue growth and the sustainability of Wall Street’s bullish assumptions. Sphere Entertainment demand concerns
• Negative Sentiment: The downgrade and $38 reduction in the price target triggered broad selling and caused the stock to gap lower, as investors reassessed the company’s near-term growth prospects. Why Sphere Entertainment stock is sinking
• Negative Sentiment: The news is particularly significant because Sphere Entertainment remains unprofitable, making attendance trends and future event demand important drivers of investor confidence and valuation.

Institutional Investors Weigh In On Sphere Entertainment

Hedge funds and other institutional investors have recently bought and sold shares of the business. Assenagon Asset Management S.A. acquired a new stake in Sphere Entertainment in the 2nd quarter valued at about $70,402,000. Renaissance Technologies LLC grew its stake in shares of Sphere Entertainment by 149.9% in the 1st quarter. Renaissance Technologies LLC now owns 559,935 shares of the company’s stock worth $65,736,000 after purchasing an additional 335,900 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund raised its holdings in shares of Sphere Entertainment by 24.8% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 523,934 shares of the company’s stock worth $61,510,000 after purchasing an additional 104,192 shares in the last quarter. Fred Alger Management LLC raised its holdings in shares of Sphere Entertainment by 370.2% in the 4th quarter. Fred Alger Management LLC now owns 350,846 shares of the company’s stock worth $33,358,000 after purchasing an additional 276,231 shares in the last quarter. Finally, Norges Bank acquired a new stake in Sphere Entertainment during the fourth quarter valued at approximately $18,890,000. 92.03% of the stock is currently owned by institutional investors.

Sphere Entertainment Trading Down 13.7%

The firm has a market capitalization of $3.98 billion, a price-to-earnings ratio of -41.32 and a beta of 1.61. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.32. The firm’s 50 day moving average is $147.73 and its 200 day moving average is $141.28.

Sphere Entertainment (NYSE:SPHR) last posted its quarterly earnings results on Thursday, July 30th. The company reported ($1.07) earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.51) by $0.44. Sphere Entertainment had a negative return on equity of 1.38% and a negative net margin of 6.19%.The company had revenue of $313.64 million for the quarter, compared to analysts’ expectations of $307.44 million. During the same quarter in the prior year, the company earned $3.39 earnings per share. The firm’s revenue was up 10.9% on a year-over-year basis. Equities analysts forecast that Sphere Entertainment Co. will post -2.34 earnings per share for the current year.

Sphere Entertainment Company Profile

Sphere Entertainment Co is an entertainment company focused on developing and operating large-scale live experiences, media properties and venues. Its flagship asset is Sphere, a next-generation entertainment venue in Las Vegas featuring a wraparound interior display, immersive audio and experiential programming. Sphere presents concerts, films, sporting events and other productions designed to combine live performance with advanced visual and audio technology.

The company also operates MSG Networks, a regional sports and entertainment media business serving audiences primarily in the New York metropolitan area.