Lions Gate Entertainment Corp. (USA) (LGF) Shares Plunge on Earnings Miss

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Today has not been a good one for many companies reporting earnings either yesterday after the close or this morning. One such company is Lions Gate Entertainment Corp. (USA) (NYSE:LGF), who reported their fiscal third quarter numbers after the close of trading yesterday.

While analysts were expecting an EPS of $0.48 per share, Lions Gate Entertainment Corp. (USA) (NYSE:LGF) reported just $0.37 per share on the quarter, which was down 43.9% from a year ago. Top line revenue was also down year-over-year, as the company reported a figure of $670.5 million. Analysts were expecting revenue of $780.6 million. While ‘The Hunger Games: Mockingjay – Part 2 was a major success at the box office, its high costs of production made its profitability a bit weak. On the television front revenues fell approximately 2.2% to just $164.7 million on weak domestic demand. The stock has fallen 21.93% or $5.58 following this negative news, hitting $19.87 per share. Approximately 906,138 shares traded hands. LGF shares have declined 31.73% since July 1, 2015 and are currently downtrending. It has underperformed the S&P500 by 22.86%.

From a total of 7 analysts covering Lions Gate Entertainment Corp. (NYSE:LGF) stock, 7 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $48 while the lowest target price is $38. The mean of all analyst targets is $43.88 which is 120.84% above today’s ($19.87) stock price. Lions Gate Entertainment Corp. was the topic of 16 analyst reports since July 31, 2015 according to the firm StockzIntelligence Inc. Bernstein initiated shares on December 15 with a “Outperform” rating. Topeka Capital Markets maintained LGF stock in a recent report from October 21 with a “Buy” rating. Finally, Wunderlich maintained the stock with a “Buy” rating in a report they issued on a September 1.

The institutional sentiment decreased to 1.18 in Q2 2015. It’s down 0.04, from 1.22 in 2015Q2. The ratio worsened, as 36 funds sold all their Lions Gate Entertainment Corp. (USA) shares they owned while 66 reduced their positions. 43 funds bought stakes while 77 increased their total positions. Institutions now own 135.19 million shares which is 6.04% less than the previous share count of 143.88 million in 2015Q2.

Mhr Fund Management Llc holds 69.41% of its total portfolio in Lions Gate Entertainment Corp. (USA), equating to 40.21 million shares. Naya Management Llp owns 3.95 million shares representing 7.88% of their total US portfolio. Moreover, Fox Point Capital Management Llc has 7.09% of their total portfolio invested in the company, equating to 162,500 shares. The New York-based Napier Park Global Capital (Us) Lp has a total of 4.16% of their portfolio invested in the stock. Act Ii Management Lp, a New York-based fund reported 202,440 shares owned.

Since April 3, 2015, the stock had 0 insider buys, and 1 insider sale for a total of $739,400 in net activity. Beeks Steve sold 20,000 shares worth $739,400. Evrensel Arthur sold 23,000 shares worth $722,430. Rachesky Mark H Md sold 1.05M shares worth $33.21 million. Crawford Gordon bought 35,000 shares worth $1.09M. The insider Feltheimer Jon sold 250,000 shares worth $8.38 million.

Lions Gate Entertainment Corp. is engaged in motion picture production and distribution, television programming and syndication, home entertainment, digital distribution, channel platforms and international distribution and sales. The company has a market cap of $2.95 billion. The Firm operates through two divisions: Motion Pictures and Television Production. It has 26.47 P/E ratio. The Company’s Motion Pictures segment consists of the development and production of feature films, acquisition of North American and global distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and global licensing of distribution rights to feature films produced and acquired.