Madison Square Garden (MSG) Rating Increased to Buy at Zacks Investment Research

Madison Square Garden (NYSE:MSG) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday. The brokerage presently has a $316.00 price objective on the stock. Zacks Investment Research‘s price target would suggest a potential upside of 14.35% from the company’s current price.

According to Zacks, “Shares of Madison Square have outperformed the industry in the past one year. Earnings estimates for current and next year have remained stable in the past 60 days. Madison Square continues to benefit from ongoing efforts to reinstate growth through multi-night and multi-marketing agents. Moreover, continual partnerships to expand its footprint bode well. It not only has a strong brand presence but its entertainment business also continues to grow on innovative venues and overall positive scenario in the concert market. Moreover, intense competition in the sports business and subsequent sluggish performance by Knicks remain concerns. Given the underperforming sports business segment, Madison Square has recently contemplated the spin-off of its sports business from the entertainment segment.”

Several other equities research analysts also recently issued reports on the company. Guggenheim upped their price target on Madison Square Garden to $350.00 and gave the stock a “buy” rating in a report on Thursday, August 23rd. Morgan Stanley upped their target price on Madison Square Garden from $260.00 to $315.00 and gave the company an “equal weight” rating in a report on Wednesday, August 1st. Imperial Capital initiated coverage on Madison Square Garden in a report on Tuesday, August 21st. They issued an “outperform” rating and a $372.00 target price for the company. Jefferies Financial Group raised Madison Square Garden from a “hold” rating to a “buy” rating and upped their target price for the company from $233.00 to $350.00 in a report on Thursday, June 28th. Finally, Macquarie raised Madison Square Garden from a “neutral” rating to an “outperform” rating in a report on Friday, June 29th. One investment analyst has rated the stock with a hold rating, six have issued a buy rating and one has given a strong buy rating to the stock. The company currently has an average rating of “Buy” and an average price target of $328.50.

Shares of MSG opened at $276.35 on Wednesday. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.85 and a quick ratio of 1.85. The company has a market cap of $6.78 billion, a price-to-earnings ratio of 46.52, a P/E/G ratio of 15.75 and a beta of 0.37. Madison Square Garden has a 52 week low of $205.22 and a 52 week high of $330.00.

Madison Square Garden (NYSE:MSG) last announced its quarterly earnings results on Thursday, August 16th. The company reported ($1.94) earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($2.00) by $0.06. Madison Square Garden had a return on equity of 1.10% and a net margin of 9.08%. The business had revenue of $318.00 million during the quarter, compared to the consensus estimate of $293.32 million. During the same quarter in the prior year, the company posted ($3.58) earnings per share. Madison Square Garden’s revenue was up 4.1% compared to the same quarter last year. Analysts expect that Madison Square Garden will post 0.71 EPS for the current year.

A number of institutional investors and hedge funds have recently bought and sold shares of MSG. Partner Fund Management L.P. bought a new position in Madison Square Garden during the second quarter valued at about $48,929,000. Scout Investments Inc. bought a new position in shares of Madison Square Garden during the 3rd quarter valued at approximately $18,377,000. Renaissance Technologies LLC grew its position in shares of Madison Square Garden by 13.2% during the 2nd quarter. Renaissance Technologies LLC now owns 436,199 shares of the company’s stock valued at $135,305,000 after acquiring an additional 50,999 shares during the period. Sei Investments Co. grew its position in shares of Madison Square Garden by 325.4% during the 2nd quarter. Sei Investments Co. now owns 54,341 shares of the company’s stock valued at $16,855,000 after acquiring an additional 41,566 shares during the period. Finally, Ivory Investment Management LLC bought a new position in shares of Madison Square Garden during the 2nd quarter valued at approximately $12,604,000. Institutional investors own 70.20% of the company’s stock.

Madison Square Garden Company Profile

The Madison Square Garden Company, together with its subsidiaries, engages in live sports and entertainment businesses in the United States. The company operates in two segments, MSG Sports and MSG Entertainment. The MSG Sports segment owns and operates professional sports franchises; and promotes, produces, and/or presents an array of other live sporting events, including professional boxing, college basketball, college hockey, professional bull riding, mixed martial arts, esports, tennis, and college wrestling.

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