Are Smart Investors Making the Right Decision? Madison Square Garden Entertainment Corp. (MSGE)

Madison Square Garden Entertainment Corp. (NYSE: MSGE) stock fell -1.95% on Monday to $32.11 against a previous-day closing price of $32.75. With 0.84 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.47 million shares. During the session, the Leisure company that operates in wider Consumer Cyclical sector, reached to the highest price of $32.22 whereas the lowest price it dropped to was $30.00. The 52-week range on MSGE shows that it touched its highest point at $40.81 and its lowest point at $28.09 during that stretch. It currently has a 1-year price target of $40.43.

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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 MSGE was down-trending over the past week, with a drop of -0.65%, but this was up by 4.76% over a month. A look at the trailing 12-month EPS for MSGE yields 1.48 with Next year EPS estimates of 1.31. For the next quarter, that number is -0.46. This implies an EPS growth rate of 156.90% for this year and 19.58% for next year.

Float and Shares Shorts:

At present, 51.97 million MSGE shares are outstanding with a float of 42.40 million shares on hand for trading. On Aug 14, 2023, short shares totaled 1.44 million, which was 2.82% higher than short shares on Jul 13, 2023. In addition to Mr. James Lawrence Dolan as the firm’s Exec. Chairman & CEO, Mr. David F. Byrnes serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 33.03% of MSGE’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 36.75% of MSGE, in contrast to 34.29% held by mutual funds. Shares owned by individuals account for 21.08%. As the largest shareholder in MSGE with 15.84% of the stake, Ariel Investments LLC holds 6,997,080 shares worth 6,997,080. A second-largest stockholder of MSGE, The Vanguard Group, Inc., holds 3,156,186 shares, controlling over 7.14% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in MSGE, holding 2,377,106 shares or 5.38% stake. With a 6.09% stake in MSGE, the Ariel Fund is the largest stakeholder. A total of 2,692,235 shares are owned by the mutual fund manager. The T Rowe Price Mid Cap Value Fund, which owns about 2.77% of MSGE stock, is the second-largest Mutual Fund holder. It holds 1,223,886 shares valued at 39.27 million. Vanguard Total Stock Market ETF holds 2.33% of the stake in MSGE, owning 1,030,939 shares worth 33.08 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, MSGE reported revenue of $178.34M and operating income of -$70.05M. The EBITDA in the recently reported quarter was -$67.43M and diluted EPS was -$1.38.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MSGE since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MSGE analysts setting a high price target of $43.00 and a low target of $36.00, the average target price over the next 12 months is $40.43. Based on these targets, MSGE could surge 33.91% to reach the target high and rise by 12.11% to reach the target low. Reaching the average price target will result in a growth of 25.91% 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.

Summary of Insider Activity:

Insiders traded MSGE stock several times over the past three months with 1 Buys and 3 Sells. In these transactions, 322,580 shares were bought while 8,800,303 shares were sold. The number of buy transactions has increased to 33 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 1,091,727 while 8,811,303 shares were sold.

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