Analysts at StockNews.com recently initiated coverage on shares of World Wrestling Entertainment (NYSE:WWE) and assigned a “hold” rating to the stock. The company’s stock opened at $100.65 on September 20, 2023, with a market capitalization of $8.37 billion. World Wrestling Entertainment has exhibited a 12-month low of $66.13 and a 12-month high of $118.04. With a price-to-earnings ratio of 49.34 and a beta value of 1.14, World Wrestling Entertainment operates in the sports entertainment industry as an integrated media and entertainment company.
The company is involved in various segments including Media, Live Events, and Consumer Products. In its Media segment, World Wrestling Entertainment produces and monetizes long-form and short-form video content across multiple platforms such as WWE Network, broadcast and pay television, digital channels, and social media avenues. Additionally, it engages in filmed entertainment activities.
On August 2nd, World Wrestling Entertainment released its quarterly earnings data which revealed that the company had earned $0.91 per share for the quarter—$0.02 lower than the consensus estimate of $0.93 EPS provided by analysts. The company generated revenue amounting to $410.30 million for the quarter—surpassing analysts’ expectations of $398.54 million.
It is vital to note that World Wrestling Entertainment holds a net margin of 12.65% along with a return on equity rate of 34.50%. Sell-side analysts predict that the company will post earnings per share (EPS) of approximately 2.65 for the current fiscal year.
Overall, these recent developments demonstrate the potential challenges facing World Wrestling Entertainment as they work towards sustaining growth within their industry segment. Investors should continue to analyze future developments within both the sports entertainment domain and broader market trends in order to make informed decisions regarding their investment strategies.
IQVIA Holdings Inc.
Updated on: 03/12/2023
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
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|Analyst / firm||Rating|
Elizabeth Anderson CFA
Derik De Bruin
Bank of America Securities
Conflicting Analyst Ratings and Institutional Investments Surrounding WWE Stock: What Individual Investors Need to Know
In a recent research note issued on September 20, 2023, investment bank Morgan Stanley reiterated an “overweight” rating on shares of World Wrestling Entertainment (WWE) and set a price target of $125.00. This latest development comes after four equities research analysts have given the stock a hold rating, while three others have assigned it a buy rating.
According to Bloomberg, there is a consensus rating of “Hold” for WWE with an average price target of $111.86. However, what appears to be causing some perplexity among investors is the differing opinions on the stock’s outlook. While Morgan Stanley remains optimistic about its potential and has provided a bullish price target, other analysts seem more cautious or neutral in their stance.
It is worth noting that institutional investors and hedge funds have also been actively buying and selling WWE shares recently. For instance, Comerica Bank made a significant purchase during the second quarter, acquiring shares valued at approximately $336,000. Additionally, Alliancebernstein L.P., one of the leading investment management firms, increased its position in WWE by an astounding 438% during the same period. The firm now owns over 314,748 shares of the company’s stock worth $34,141,000.
Another prominent player in the financial landscape that has shown interest in WWE is Wells Fargo & Company MN. The company increased its position in WWE by 175% during the second quarter by purchasing an additional 73,004 shares valued at $12,443,000. These moves by major financial institutions highlight their confidence in WWE’s potential for growth and profitability.
Public Employees Retirement System of Ohio also took part in this trend by raising its holdings in WWE by 0.7% during the second quarter. The retirement system now owns 21,783 shares of the company’s stock worth $2,363,000 after purchasing an additional 142 shares.
Moreover, State of Tennessee Treasury Department joined the ranks of institutional investors interested in WWE during the second quarter. This department purchased a new stake worth approximately $2,558,000, indicating optimism about the future prospects of the company.
Taking into account these recent activities by institutional investors and hedge funds, it can be observed that there is a sense of bustiness surrounding WWE’s stock. Despite differing ratings given by analysts, major financial players seem to have confidence in the company’s ability to deliver positive returns.
However, it is important for individual investors to approach these varying opinions with caution and conduct thorough research before making any investment decisions. The stock market can be volatile, and relying solely on analyst ratings or institutional investments may not necessarily lead to profitable outcomes.
As always, it is advisable for investors to diversify their portfolios and consult with financial advisors who can provide personalized guidance based on individual risk tolerance and financial goals. By staying informed and remaining vigilant in their investment strategies, investors can navigate through the complexities of the market effectively.