TLDR
- Paramount Skydance (PSKY) stock rose 4% to $10.36 in mid-day trading on Monday.
- Trading volume came in 61% below the average, even with the price jump.
- The company plans to issue about $44.4 billion in notes to help fund its Warner Bros. Discovery acquisition.
- Paramount Skydance beat earnings estimates last quarter with $0.18 EPS versus a $0.15 forecast.
- Wall Street remains split, with a consensus “Reduce” rating and a $11.17 price target.
Paramount Skydance (PSKY) stock rose 4% to $10.36 in mid-day trading on Monday. The move came on lighter than usual volume, down 61% from the daily average.
Paramount Skydance Corporation Class B Common Stock, PSKY
The stock jump followed news that Paramount Skydance plans to issue roughly $44.4 billion in senior secured notes. The offering is meant to help fund the company’s acquisition of Warner Bros. Discovery.
The notes will come in both dollar and euro denominations. They are being offered to qualified institutional buyers and certain non-U.S. investors.
Net proceeds will be combined with cash on hand, term loans and equity financing. Together, the funds are meant to cover the purchase price of the Warner Bros. Discovery deal and pay down existing debt.
Paramount Skydance also released pro forma financial information tied to the offering. The figures blend historical statements from Paramount Skydance, Warner Bros. Discovery and Skydance Media into one combined picture.
Earnings and Dividend
The company topped earnings expectations last month. It reported $0.18 in earnings per share against a $0.15 estimate, on revenue of $6.91 billion.
Net margin stayed negative at 2.13%, while return on equity came in at 4.11%. Analysts expect full year earnings per share of $0.56.
Paramount Skydance also declared a quarterly dividend of $0.05 per share. That works out to a 2% annualized yield, payable October 1st to holders of record as of September 15th.
The dividend payout ratio sits at 68.97%. The company has kept the payment steady even as it takes on new debt for the merger.
Analyst Ratings
Wall Street remains divided on the stock. MarketBeat lists nine Sell ratings, five Hold ratings and four Buy ratings, adding up to a consensus “Reduce” rating.
The consensus price target sits at $11.17, with individual estimates ranging from $2.00 to $16.00. Morgan Stanley raised its target to $11.50 on September 22nd with an “overweight” rating.
Citigroup started coverage this month with an “outperform” rating. Benchmark cut its target to $16.00 from $19.00 in August while keeping a “buy” call.
Arete Research has held a “sell” rating and a $2.00 target since July. TipRanks’ AI tool, Spark, rates the stock Neutral, pointing to weak operating profitability and high leverage.
Institutional investors own about 73% of the company’s stock. Firms including Huntington National Bank and Global Retirement Partners added to their positions in recent quarters.
The stock carries a market cap of $11.46 billion. Its price-to-earnings ratio stands at 35.40, with a beta of 1.50.
The 50-day moving average sits at $9.82, compared with a 200-day average of $10.04. The current ratio is 1.04 and the debt-to-equity ratio is 1.13.
The most recent analyst rating on PSKY stock is a Sell with a $9.00 price target. The notes offering remains subject to market and closing conditions.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
