Sphere Entertainment (NYSE:SPHR) Shares Gap Up Following Better-Than-Expected Earnings

Sphere Entertainment Co. (NYSE:SPHR)’s share price gapped up prior to trading on Monday following a better than expected earnings announcement. The stock had previously closed at $40.29, but opened at $45.00. Sphere Entertainment shares last traded at $39.95, with a volume of 455,056 shares traded.

The company reported $3.39 earnings per share for the quarter, topping analysts’ consensus estimates of ($1.67) by $5.06. Sphere Entertainment had a negative return on equity of 16.78% and a negative net margin of 33.00%. The business’s revenue for the quarter was up 3.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($2.00) earnings per share.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on SPHR. Susquehanna began coverage on Sphere Entertainment in a research report on Monday, April 28th. They issued a “positive” rating and a $37.00 target price on the stock. Wall Street Zen raised Sphere Entertainment from a “sell” rating to a “hold” rating in a research report on Saturday, July 12th. Guggenheim upped their target price on Sphere Entertainment from $69.00 to $74.00 and gave the company a “buy” rating in a research report on Friday, May 9th. Craig Hallum began coverage on Sphere Entertainment in a research report on Monday, June 23rd. They issued a “buy” rating and a $75.00 target price on the stock. Finally, Benchmark reaffirmed a “sell” rating and issued a $35.00 target price on shares of Sphere Entertainment in a research report on Monday, May 19th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $48.70.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Ariel Investments LLC increased its holdings in shares of Sphere Entertainment by 9.6% during the first quarter. Ariel Investments LLC now owns 6,298,139 shares of the company’s stock valued at $206,075,000 after purchasing an additional 553,947 shares during the period. Dimensional Fund Advisors LP increased its holdings in shares of Sphere Entertainment by 0.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,465,363 shares of the company’s stock valued at $59,084,000 after purchasing an additional 9,837 shares during the period. Steadfast Capital Management LP increased its holdings in shares of Sphere Entertainment by 183.8% during the fourth quarter. Steadfast Capital Management LP now owns 926,100 shares of the company’s stock valued at $37,340,000 after purchasing an additional 599,800 shares during the period. Geode Capital Management LLC increased its holdings in shares of Sphere Entertainment by 1.5% during the second quarter. Geode Capital Management LLC now owns 650,037 shares of the company’s stock valued at $27,175,000 after purchasing an additional 9,746 shares during the period. Finally, Goldman Sachs Group Inc. boosted its stake in Sphere Entertainment by 132.0% during the first quarter. Goldman Sachs Group Inc. now owns 628,886 shares of the company’s stock valued at $20,577,000 after buying an additional 357,794 shares in the last quarter. 92.03% of the stock is owned by institutional investors and hedge funds.

Sphere Entertainment Price Performance

The company has a 50 day moving average of $41.57 and a two-hundred day moving average of $37.84. The firm has a market cap of $1.38 billion, a P/E ratio of -3.85 and a beta of 1.71. The company has a quick ratio of 0.53, a current ratio of 0.53 and a debt-to-equity ratio of 0.24.

Sphere Entertainment Company Profile

Sphere Entertainment Co engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre.