Paramount Skydance (NASDAQ:PSKY) Stock Sees Unusually High Put Option Buying

Paramount Skydance Corporation (NASDAQ:PSKY) saw some unusual options trading on Tuesday. Traders acquired 45,202 put options on the stock. This is an increase of approximately 52% compared to the average volume of 29,819 put options.

Institutional Trading of Paramount Skydance

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Contrarius Group Holdings Ltd grew its holdings in Paramount Skydance by 52.9% in the fourth quarter. Contrarius Group Holdings Ltd now owns 15,088,097 shares of the company’s stock valued at $202,180,000 after purchasing an additional 5,221,622 shares during the period. MTCO Ltd. raised its stake in Paramount Skydance by 133.3% during the first quarter. MTCO Ltd. now owns 6,300,000 shares of the company’s stock worth $56,826,000 after purchasing an additional 3,600,000 shares during the period. Dimensional Fund Advisors LP raised its stake in Paramount Skydance by 126.3% during the first quarter. Dimensional Fund Advisors LP now owns 3,970,920 shares of the company’s stock worth $35,812,000 after purchasing an additional 2,216,433 shares during the period. Bank of New York Mellon Corp acquired a new position in shares of Paramount Skydance in the 2nd quarter valued at $14,002,000. Finally, Palestra Capital Management LLC purchased a new stake in shares of Paramount Skydance during the 2nd quarter valued at $12,798,000. Hedge funds and other institutional investors own 73.00% of the company’s stock.

Paramount Skydance Trading Down 2.8%

Shares of Paramount Skydance stock traded down $0.29 during mid-day trading on Tuesday, hitting $9.99. 18,882,426 shares of the stock were exchanged, compared to its average volume of 12,111,746. Paramount Skydance has a twelve month low of $7.62 and a twelve month high of $20.09. The stock has a market capitalization of $11.21 billion, a price-to-earnings ratio of 34.45, a price-to-earnings-growth ratio of 0.95 and a beta of 1.50. The company has a 50-day simple moving average of $9.85 and a 200 day simple moving average of $10.04. The company has a current ratio of 1.04, a quick ratio of 0.88 and a debt-to-equity ratio of 1.13.

Shares of Paramount Skydance are set to split before the market opens on Monday, October 5th. The 2-1 split was recently announced. The newly minted shares will be issued to shareholders after the closing bell on Sunday, October 4th.

Paramount Skydance (NASDAQ:PSKY) last announced its earnings results on Tuesday, August 4th. The company reported $0.18 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.15 by $0.03. The firm had revenue of $6.91 billion for the quarter. Paramount Skydance had a negative net margin of 2.13% and a positive return on equity of 4.11%. Research analysts forecast that Paramount Skydance will post 0.56 EPS for the current year.

Paramount Skydance Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be given a dividend of $0.05 per share. The ex-dividend date is Tuesday, September 15th. This represents a $0.20 annualized dividend and a yield of 2.0%. Paramount Skydance’s dividend payout ratio is 68.97%.

Paramount Skydance News Roundup

Here are the key news stories impacting Paramount Skydance this week:

• Positive Sentiment: Paramount Skydance formally launched approximately $44.4 billion of senior secured notes, a key step toward securing permanent financing for the Warner Bros. Discovery transaction. The company also has outlined up to $46.7 billion of equity financing. Paramount Skydance Corporation Announces Launch of Notes Offerings
• Positive Sentiment: Paramount extended its Warner-related exchange and tender offers to October 6, with settlement expected in the fourth quarter. The move suggests the company is continuing to align its liability-management process with the anticipated closing. Paramount Skydance Exchange and Tender Offer Extension
• Neutral Sentiment: The company’s shares are scheduled to undergo a two-for-one split on October 5. The split changes the share count and per-share price but does not directly alter the company’s underlying value.
• Negative Sentiment: Investors are concerned that the Warner transaction could leave Paramount Skydance with nearly $80 billion of debt on a recently downgraded balance sheet. The resulting leverage and financing costs could limit cash flow and increase the consequences of any integration or deal-related problems. Paramount Launches Debt Sale for Warner Bros. Deal
• Negative Sentiment: Unusually heavy put-option activity—45,202 puts purchased, about 52% above typical volume—signals increased bearish or hedging interest in PSKY, although options activity alone does not establish a fundamental outlook.

Analyst Upgrades and Downgrades

PSKY has been the topic of several recent research reports. TD Cowen decreased their price objective on shares of Paramount Skydance from $13.00 to $8.00 and set a “hold” rating on the stock in a research report on Wednesday, August 5th. UBS Group reduced their price target on shares of Paramount Skydance from $10.00 to $8.00 and set a “sell” rating on the stock in a report on Wednesday, August 5th. Citizens Jmp reissued a “market outperform” rating and set a $14.00 price objective on shares of Paramount Skydance in a research note on Tuesday, September 22nd. Barclays assumed coverage on Paramount Skydance in a research report on Thursday, September 17th. They set an “underweight” rating and a $8.00 price objective for the company. Finally, Benchmark lowered their target price on Paramount Skydance from $19.00 to $16.00 and set a “buy” rating on the stock in a report on Wednesday, August 5th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and nine have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $11.17.

Paramount Skydance Company Profile

Paramount Skydance Corporation (NASDAQ: PSKY) is a global media and entertainment company formed through the combination of Paramount Global and Skydance Media. The company develops, produces and distributes feature films, television programming and other video content for audiences in the United States and international markets.

Its portfolio includes Paramount Pictures, CBS, Nickelodeon, MTV, Comedy Central, BET, Showtime and other well-known entertainment brands. Paramount Skydance also operates streaming services including Paramount+ and Pluto TV, as well as businesses involved in television broadcasting, news, sports and content licensing.

The company’s history includes Paramount Pictures, one of Hollywood’s longstanding film studios, and Skydance Media, a production company founded in 2010 by David Ellison.