Madison Square Garden Company Receives Mixed Ratings from Analysts

Shares of the Madison Square Garden Company (NYSE:MSGS) have received a consensus rating of “Hold” from the nine research firms currently covering the firm, according to MarketBeat. Among these analysts, one has issued a sell rating, three have given a hold rating, and five have assigned a buy rating. The average price target for the stock over the next twelve months stands at approximately $258.83.

Several analysts have recently provided their insights on Madison Square Garden. On October 8, 2023, Weiss Ratings reaffirmed a “sell (d+)” rating on the company’s shares in a research note. Meanwhile, Morgan Stanley increased their price target from $215.00 to $220.00, maintaining an “equal weight” rating as of August 13, 2023. Zacks Research upgraded the stock from a “strong sell” to a “hold” rating on October 13, 2023. Additionally, BTIG Research initiated coverage, assigning a “neutral” rating, while Citigroup began coverage with a “buy” rating and a target price of $285.00 on September 9, 2023.

Recent Financial Performance

The latest earnings report from Madison Square Garden, released on August 12, 2023, revealed a loss of $0.07 per share, surpassing analysts’ expectations of a loss of $0.42 by $0.35. The company reported revenue of $203.96 million, exceeding the consensus estimate of $151.00 million. However, this marked a 10.3% decline in revenue compared to the same quarter last year. The company also recorded a negative net margin of 2.16% and a negative return on equity of 1.76%. Analysts predict that Madison Square Garden will achieve an earnings per share of $0.73 for the current fiscal year.

Institutional Investment Activity

Institutional investors have been active in trading Madison Square Garden shares. The Illinois Municipal Retirement Fund increased its holdings by 3.1% during the first quarter, now owning 8,953 shares valued at approximately $1.74 million after acquiring an additional 267 shares. Principal Financial Group Inc. also raised its position by 2.4%, bringing its total to 83,241 shares worth about $16.21 million after adding 1,989 shares.

Further, Envestnet Asset Management Inc. boosted its stake by 50.5%, now holding 9,687 shares valued at approximately $1.89 million after acquiring an extra 3,250 shares. Meanwhile, Banque Pictet & Cie SA and MQS Management LLC each purchased new stakes in the company, valued at approximately $467,000 and $651,000, respectively. Currently, institutional investors hold about 68.94% of Madison Square Garden’s stock.

Madison Square Garden Sports Corp. operates as a prominent sports entity in the United States, owning and managing teams such as the New York Knicks of the NBA and the New York Rangers of the NHL. The company also oversees development league teams, including the Hartford Wolf Pack and the Westchester Knicks.

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