Endeavor Group Holdings Inc. (EDR) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Endeavor Group Holdings Inc. (NYSE: EDR) stock fell -1.12% on Tuesday to $21.25 against a previous-day closing price of $21.49. With 1.67 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.52 million shares. During the session, the Entertainment company that operates in wider Communication Services sector, reached to the highest price of $21.61 whereas the lowest price it dropped to was $21.20. The 52-week range on EDR shows that it touched its highest point at $33.44 and its lowest point at $17.42 during that stretch. It currently has a 1-year price target of $31.25.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of EDR was down-trending over the past week, with a drop of -1.89%, but this was up by 2.41% over a month. Three-month performance dropped to -1.89% while six-month performance fell -4.02%. The stock lost -28.45% in the past year, while it has lost -5.72% so far this year. A look at the trailing 12-month EPS for EDR yields 1.14 with Next year EPS estimates of 1.37. For the next quarter, that number is 0.20. This implies an EPS growth rate of 56.20% for this year and 24.59% for next year. EPS is expected to grow by 21.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -32.30%.

Float and Shares Shorts:

At present, 285.87 million EDR shares are outstanding with a float of 184.37 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.09 million, which was 2.11% higher than short shares on Sep 14, 2022. In addition to Mr. Ariel Zev Emanuel as the firm’s CEO & Director, Mr. Mark S. Shapiro serves as its Pres.


Institutional Ownership:

Through their ownership of 57.99% of EDR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 35.51% of EDR, in contrast to 25.34% held by mutual funds. Shares owned by individuals account for 0.73%. As the largest shareholder in EDR with 7.27% of the stake, GIC Pte Ltd. holds 21,038,712 shares worth 21,038,712. A second-largest stockholder of EDR, Canada Pension Plan Investment Bo, holds 21,038,712 shares, controlling over 7.27% of the firm’s shares. Coatue Management LLC is the third largest shareholder in EDR, holding 15,902,376 shares or 5.49% stake. With a 7.27% stake in EDR, the Canada Pension Plan is the largest stakeholder. A total of 21,039,000 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.38% of EDR stock, is the second-largest Mutual Fund holder. It holds 3,985,252 shares valued at 89.83 million. Morgan Stanley Invt. Fds. – Globa holds 1.34% of the stake in EDR, owning 3,868,039 shares worth 87.19 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EDR since 12 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With EDR analysts setting a high price target of $41.00 and a low target of $28.00, the average target price over the next 12 months is $31.25. Based on these targets, EDR could surge 92.94% to reach the target high and rise by 31.76% to reach the target low. Reaching the average price target will result in a growth of 47.06% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. EDR will report FY 2022 earnings on 03/14/2024. Analysts have provided yearly estimates in a range of $2.17 being high and $0.94 being low. For EDR, this leads to a yearly average estimate of $1.21. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Endeavor Group Holdings Inc. surprised analysts by $0.11 when it reported $0.37 EPS against a consensus estimate of $0.27. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is $0.26 and the low estimate is $0.12. The average estimate for the next quarter is thus $0.22.

Summary of Insider Activity:

Insiders traded EDR stock several times over the past three months with 4 Buys and 7 Sells. In these transactions, 805,079 shares were bought while 998,086 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 1,993,806 while 2,302,408 shares were sold.

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