Why did ViacomCBS stock fall 55%?
Multiple downgrades, an ill-timed stock offering and, as a final blow, at least two large block trades linked to the forced liquidation of Archegos Capital Management, brought ViacomCBS down from a record $100.34 on March 22 to $45.01 Monday. The stock fell 55% in five sessions.
Could Viacom’s cratering stock threaten to derail its $3 billion sales?
The cratering of ViacomCBS stock could possibly threaten to derail its $3 billion-plus stock sales, CFRA Research analyst Tuna Amobi wrote in a note Monday. “We think the liquidation trade could pose a lingering near-term overhang on the shares, potentially compromising (if not jeopardizing) the pending equity offerings,” Amobi wrote.
Is VIAC's shift to streaming now more aggressive?
“Management believes the company can now pursue a more aggressive shift to streaming without adding leverage to the balance sheet, which they believe could have constrained VIAC’s ability to invest over the long-term,” Goldman Sachs media analysts wrote Thursday in a research report.
What did Shari Redstone do to Viacom?
That management group also spent billions of dollars buying back Viacom stock at inflated prices rather than prepare for the dawning of the streaming era. Shari Redstone stepped in to assist her ailing father, the late media tycoon Sumner Redstone, after a tumultuous period and a high-profile legal battle waged with his former female companions.
What happened to CBS Viacom?
To put a bow on it all, ViacomCBS will be renamed Paramount Global—after the company's more-than-century-old Hollywood film studio—and its stock ticker will change to “PARA” on Thursday.
What happened to VIAC stock symbol?
The VIAC ticker symbol is no longer in use. That's unfortunate for the company known now as Paramount Global to Nasdaq. On its final day under the old ticker symbol, a $6.41 single-session slump was seen by the company formerly known as ViacomCBS.
Is VIAC good stock to buy?
Considering all the above, I see strong value in VIAC at the current price of $32.72, with a forward PE ratio of 8.7x, sitting well below its normal PE of 12.9x over the past decade, as shown below.
Why did VIAC stock go up?
Among the biggest factors: the company launched its Paramount+ streaming service on March 4, 13 key CBS TV affiliates signed multi-year contract renewals in January, and retail investors began to target VIAC shares. The result was VIAC stock closing at $100.34 on March 22, for a 174% increase to that point in 2021.
Is VIAC the same as PARA?
ViacomCBS Inc. Class B (VIAC) will change its name and trading symbol to Paramount Global Class B (PARA) effective February 17, 2022.
Is VIAC now paramount?
The rebranding comes two years after Chairwoman Shari Redstone formed ViacomCBS by reuniting her late father's Viacom media company with legendary broadcasting company CBS.
Is VIAC a value stock?
In aggregate,ViacomCBS currently has a Zacks Value Score of A, putting it into the top 20% of all stocks we cover from this look. This makes ViacomCBS a solid choice for value investors.
Why is Viacom so cheap?
VIAC stock is rather cheap based on its current profitability and outlook. As long as Viacom is able to maintain its present levels of prosperity — let alone achieve further growth — VIAC stock should perform well. Based on Viacom's past results, the current share price looks like a real opportunity.
Who is going to buy Viacom?
The latest and greatest chapter in its turbulent history is the 2019 "re-merger" of Viacom and CBS. CBS and Viacom agreed to recombine in an all-stock merger, reassembling the two parts of a historic media empire, with the aim of becoming more competitive in the entertainment industry.
Can VIAC recover?
After being caught up in the 2020 stock market crash, ViacomCBS shares were going for under $12 last March. One year later, they had topped $100. Part of that was the gradual recovery of the stock through 2020. VIAC shares were worth $37.26 to close 2020.
Will ViacomCBS be bought?
Share All sharing options for: ViacomCBS rebrands to Paramount in focus on streaming. ViacomCBS is getting a new name: Paramount. The media behemoth — which was created through the merger of CBS and Viacom in 2019 — said the rebrand is meant to focus on the company's goal of becoming a major player in streaming.
Who owns Viacom stock?
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in ViacomCBS. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 10% of shares outstanding.
How VIAC is changing its name?
ViacomCBS (VIAC) is a main worldwide media and diversion organization that makes premium substances and encounters for crowds around the world.
What hurts ViacomCBS after-hours?
ViacomCBS (VIAC) missed Wall Street estimates for earnings per share in the final quarter, yet added a record 9.4 million streaming endorsers and crushed sales projections. VIAC emerged with quarterly earnings of $0.26 per share, missing the consensus estimate of $0.38 per share. This analyzes to profit of $1.04 per share a year prior.
What happened
Shares of entertainment company ViacomCBS ( PARA -0.74% ), which announced Tuesday evening that it's changing its name to Paramount Global, reported earnings last night. Today, shares of Paramount (the name change has already gone into effect) are down 21.7% as of 11:30 a.m. ET.
So what
Don't think the name change is the reason for the stock selling off. Today's decline is all about the earnings.
NASDAQ: PARA
Last night, Paramount reported pro forma earnings of just $0.26 per share where Wall Street had been hoping to see $0.43 -- a sizable miss. This was despite Paramount's sales coming in well ahead of the expected $7.5 billion, growing 16% to $8 billion, and even earnings arguably being better than they looked.
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What happened
Shares of media company ViacomCBS ( PARA 1.98% ) fell as much as 40% on Friday after being downgraded by an analyst. At 2:40 p.m. EDT, shares were still down 33.1% and heading for a very poor end to the week.
So what
Wells Fargo analyst Steven Cahall was the one driving the drop today, lowering his rating on ViacomCBS stock to underweight and lowering the price target from $82 to $59 per share. That one-year price target is well below the $66.35 per share that the stock ended at yesterday.
Now what
Shares of ViacomCBS shot higher early in the year on the hope that streaming would remake the business. But shares may have gotten ahead of themselves, and Paramount+ has a lot to prove before it will be considered one of the streaming powerhouses.
How much did Hwang pay to settle the SEC charges?
Hwang and his firms agreed to pay $44 million to settle the SEC’s charges. It’s not clear when Hwang’s Archegos Capital Management took its large positions in Chinese internet companies, including Tencent Music Entertainment Group, and U.S. media companies ViacomCBS and Discovery.
What is total return swap?
Archegos relied on so-called “total return swaps,” which are brokered by Wall Street banks for a fee and allow investors to collect profits (or sustain losses) on a stock portfolio. Advertisement. A spokesman for Archegos declined to comment.
Is Viacomcbs a bullish company?
One year after panic on Wall Street, media stocks including ViacomCBS, Discovery and Disney are booming. Investors are bullish on companies with streaming services. ViacomCBS, as one of the smallest of the major media companies, has unique challenges.
Free Cash Flow
It also represents an FCF margin of 6.9% on its 9-month sales of $20.581 billion. Given that analysts expect revenue of $28.03 billion this year, that implies that FCF could almost reach $2.o billion ($1.93b).
Where This Leaves ViacomCBS
Although Viacom’s total revenue rose just 13% year-over-year (YoY), its streaming revenue rose 62% YoY. However, streaming represents just $1.1 billion of its total $6.61 quarterly revenue.
What To Do With VIAC Stock
Given Viacom’s higher content spending, we can estimate that its FCF margin will be lower next year at about 3.0%. Given that the average of 26 analysts’ estimates is that revenue will hit $29.23 billion, this results in FCF estimates of $877 million.