Wall Street Zen Downgrades Madison Square Garden (NYSE:MSGS) to Sell

Madison Square Garden (NYSE:MSGS) was downgraded by analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.

Other analysts have also recently issued research reports about the stock. Seaport Research Partners upped their target price on shares of Madison Square Garden from $430.00 to $435.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Zacks Research cut shares of Madison Square Garden from a “hold” rating to a “strong sell” rating in a research note on Thursday, July 16th. Guggenheim lifted their price objective on Madison Square Garden from $522.00 to $584.00 and gave the company a “buy” rating in a report on Friday. Morgan Stanley upgraded Madison Square Garden from an “equal weight” rating to an “overweight” rating and set a $450.00 price objective on the stock in a research note on Wednesday, July 15th. Finally, Citigroup increased their target price on Madison Square Garden from $355.00 to $360.00 and gave the stock a “neutral” rating in a report on Wednesday, May 13th. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Madison Square Garden has an average rating of “Hold” and a consensus price target of $471.20.

Madison Square Garden Stock Performance

NYSE:MSGS opened at $406.63 on Friday. The company has a 50-day moving average of $389.78 and a 200-day moving average of $347.98. The company has a market capitalization of $9.79 billion, a price-to-earnings ratio of 1,355.48 and a beta of 0.62. Madison Square Garden has a 52 week low of $191.33 and a 52 week high of $438.93.

Institutional Investors Weigh In On Madison Square Garden

Hedge funds have recently made changes to their positions in the company. Amundi boosted its position in Madison Square Garden by 4.7% in the first quarter. Amundi now owns 5,643 shares of the company’s stock valued at $1,091,000 after buying an additional 252 shares in the last quarter. Millennium Management LLC grew its stake in Madison Square Garden by 8.0% during the first quarter. Millennium Management LLC now owns 27,147 shares of the company’s stock worth $5,286,000 after buying an additional 2,006 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Madison Square Garden by 28.2% during the first quarter. Goldman Sachs Group Inc. now owns 24,807 shares of the company’s stock worth $4,830,000 after buying an additional 5,452 shares in the last quarter. United Services Automobile Association acquired a new stake in shares of Madison Square Garden during the first quarter worth approximately $210,000. Finally, Empowered Funds LLC raised its stake in shares of Madison Square Garden by 10.8% in the first quarter. Empowered Funds LLC now owns 2,055 shares of the company’s stock valued at $400,000 after acquiring an additional 200 shares during the last quarter. Institutional investors and hedge funds own 68.94% of the company’s stock.

Key Stories Impacting Madison Square Garden

Here are the key news stories impacting Madison Square Garden this week:

• Positive Sentiment: Spin-off advances: MSG Sports publicly filed a Form 10 registration statement for the proposed separation of its New York Rangers business from its New York Knicks business. The transaction is intended to create two separately traded companies, potentially making each business easier to value and giving investors greater strategic flexibility. MSG Sports Form 10 Registration Statement
• Positive Sentiment: Analysts raised targets: Guggenheim increased its target to $584 and reiterated a “buy” rating, while JPMorgan raised its target to $485 with an “overweight” rating and Susquehanna lifted its target to $477 with a “positive” rating. The revisions indicate improving expectations for MSGS’s earnings and asset value. Analyst price-target revisions
• Positive Sentiment: Quarterly results beat expectations: Fiscal fourth-quarter earnings were approximately $1.16–$1.19 per share, versus consensus estimates ranging from $0.64 to $0.72, while revenue reached $278.75 million, up 36.6% year over year and well above the $227.67 million estimate. The earnings improvement was linked in part to the Knicks’ championship-related boost. MSG Sports beats fourth-quarter estimates
• Neutral Sentiment: Strong sports performance is helping near-term results: Coverage highlighted the Knicks’ success as a major contributor to the quarterly beat and recent stock momentum. However, championship-related revenue and enthusiasm may be difficult to repeat at the same level in future periods. Knicks power MSG Sports toward fourth win in five sessions
• Negative Sentiment: Valuation concerns remain: Commentary argued that the Knicks’ championship-driven earnings beat does not necessarily establish a durable investment case, suggesting investors may be cautious about one-time benefits and the stock’s elevated valuation. Knicks’ win does not support an investment case

Madison Square Garden Company Profile

Madison Square Garden Sports Corp (NYSE: MSGS) is a leading sports and entertainment holding company focused on professional sports franchises and related media assets. The company owns and operates teams such as the NBA’s New York Knicks, the NHL’s New York Rangers and the WNBA’s New York Liberty. Through these flagship franchises, MSG Sports offers a range of products and services including ticketing, premium seating and sponsorship opportunities, targeting fans in the New York metropolitan area and beyond.

In addition to team operations, Madison Square Garden Sports Corp holds a majority stake in MSG Networks, a regional cable network that broadcasts live sporting events, news and original programming.