Alliance Entertainment (NASDAQ:AENT) Downgraded to “Hold” Rating by Wall Street Zen

Alliance Entertainment (NASDAQ:AENT) was downgraded by analysts at Wall Street Zen from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Saturday.

Other research analysts also recently issued research reports about the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Alliance Entertainment in a research note on Wednesday, January 21st. Maxim Group set a $8.00 target price on shares of Alliance Entertainment in a research note on Friday. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $10.00.

Alliance Entertainment Price Performance

Shares of AENT stock opened at $5.50 on Friday. The stock has a 50 day moving average price of $7.50 and a 200 day moving average price of $6.62. Alliance Entertainment has a 52-week low of $2.21 and a 52-week high of $8.80. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.64 and a current ratio of 1.28. The firm has a market capitalization of $280.28 million, a P/E ratio of 12.79 and a beta of 0.46.

Alliance Entertainment (NASDAQ:AENT) last released its earnings results on Thursday, February 12th. The company reported $0.18 earnings per share for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.13). Alliance Entertainment had a return on equity of 21.26% and a net margin of 2.06%.The business had revenue of $368.71 million during the quarter, compared to analysts’ expectations of $427.38 million.

Institutional Trading of Alliance Entertainment

Several hedge funds and other institutional investors have recently bought and sold shares of AENT. XTX Topco Ltd purchased a new position in shares of Alliance Entertainment in the 2nd quarter valued at $59,000. Jacobs Levy Equity Management Inc. purchased a new stake in shares of Alliance Entertainment during the 3rd quarter worth $193,000. Ritholtz Wealth Management bought a new stake in Alliance Entertainment during the third quarter valued at about $290,000. Empowered Funds LLC grew its stake in Alliance Entertainment by 9.2% in the first quarter. Empowered Funds LLC now owns 90,880 shares of the company’s stock valued at $304,000 after purchasing an additional 7,683 shares during the last quarter. Finally, Marshall Wace LLP purchased a new position in Alliance Entertainment in the fourth quarter valued at about $422,000. Institutional investors own 0.27% of the company’s stock.

Key Headlines Impacting Alliance Entertainment

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

• Positive Sentiment: Operational improvements — Adjusted EBITDA rose 15% to $18.5M, gross margin expanded ~210 bps to 12.8%, and net income increased to $9.4M ($0.18/share). These demonstrate margin improvement and better profitability. GlobeNewsWire Release
• Positive Sentiment: Stronger balance sheet — the company ended the quarter with about $74.1M in working capital, which supports liquidity and operational flexibility. GlobeNewsWire Release
• Neutral Sentiment: Business development — Alliance plans to showcase an expanding collectibles portfolio at New York Toy Fair 2026, a product/marketing event that could help sales over time but is not an immediate earnings catalyst. Business Insider
• Neutral Sentiment: Short-interest reporting appears inconsistent — February short-interest notices reference a “large increase” but show 0 shares/NaN in the data feed, making any short-squeeze or bearish short-interest interpretation unclear.
• Negative Sentiment: Earnings and revenue miss — Q2 EPS was $0.18 vs. consensus ~$0.31 and revenue was $368.7M vs. ~$427.4M expected; misses likely drove the immediate negative market reaction. Zacks
• Negative Sentiment: Investor call / transcript coverage is live — analysts and investors will parse the Q2 call for sales drivers, guidance, and inventory/seasonality color; early sentiment from transcripts can amplify intraday moves. Seeking Alpha Transcript MSN

Alliance Entertainment Company Profile

Alliance Entertainment (NASDAQ: AENT) is a distributor of physical media and related entertainment products, serving retailers, public libraries and online merchants. The company’s core business revolves around the wholesale distribution of music and video titles on CD, DVD and Blu-ray formats, as well as vinyl records, audiobooks, video games and select gift and novelty items. By maintaining a broad catalog of new and catalog titles, Alliance Entertainment enables brick-and-mortar and e-commerce channels to access an extensive range of products from major and independent labels.

In addition to its product offerings, Alliance Entertainment provides supply-chain and logistics services designed to streamline inventory management and order fulfillment.