Susquehanna Analyst Says Media Stocks Are Hibernating ‘Til Spring

Wall Street analysts are starting to think entertainment company stocks will likely stay steady before turning upward in the spring. Susquehanna International Group analyst Vasily Karasyov made the prediction on Wednesday based on historical trends.

In Karasyov’s report titled “Quiet Please: Media Stocks Are Hibernating ’til Spring,” the analyst said that, “Based on our analysis of 16 years of trading data, we think that media stocks will be flattish in the next two months, but up 6 percent by the end of May…There is a pronounced seasonality in media stocks’ price performance with a flattish winter, strong spring, a down summer, and an up fall.”  The analyst suggests that investors enjoy April and May success in the industry but then sell before stocks fall in June.

Karasyov has “neutral” ratings on Walt Disney (NYSE:DIS), AMC Networks (NASDAQ:AMCX), Scripps Networks Interactive (NYSE:SNI) and Madison Square Garden (NASDAQ:MSG), but is “positive” on Time Warner (NYSE:TWX), News Corp. (NASDAQ:NWSA), Viacom (NASDAQ:VIAB) and Discovery Communications (NASDAQ:DISCK). In other entertainment stocks, Barrington Research analyst James Goss recommends IMAX (NYSE:IMAX) and Sirius XM Radio (NASDAQ:SIRI) stocks as he rates both as “outperform.”

Here’s how the media stocks are reacting to the latest analysis:

Walt Disney Co. (NYSE:DIS): DIS shares recently traded at $38.70,. They have traded in a 52-week range of $28.19 to $44.34. Volume today was 8,000 shares versus a 3-month average volume of 11,526,500 shares. The company’s trailing P/E is 15.36, while trailing earnings are $2.52 per share.

Scripps Networks Interactive, Inc. (NYSE:SNI): SNI shares recently traded at $44.34,. They have traded in a 52-week range of $33.82 to $53.66. Volume today was 0 shares versus a 3-month average volume of 991,070 shares. The company’s trailing P/E is 18.23, while trailing earnings are $2.43 per share.

Madison Square Garden, Inc. (NASDAQ:MSG): MSG shares recently traded at $28.80,. They have traded in a 52-week range of $21.12 to $30.37. Volume today was 0 shares versus a 3-month average volume of 312,095 shares. The company’s trailing P/E is 38.40, while trailing earnings are $0.75 per share.

CBS Corporation (NYSE:CBS): CBS shares recently traded at $28.15,. They have traded in a 52-week range of $17.99 to $29.68. Volume today was 0 shares versus a 3-month average volume of 7,623,990 shares. The company’s trailing P/E is 16.01, while trailing earnings are $1.76 per share.

Time Warner Inc. (NYSE:TWX): TWX shares recently traded at $37.36,. They have traded in a 52-week range of $27.62 to $38.62. Volume today was 0 shares versus a 3-month average volume of 6,967,110 shares. The company’s trailing P/E is 14.18, while trailing earnings are $2.63 per share.

IMAX Corporation (NASDAQ:IMAX): IMAX shares recently traded at $21.23,. They have traded in a 52-week range of $12.57 to $38.00. Volume today was 0 shares versus a 3-month average volume of 875,189 shares. The company’s trailing P/E is 22.63, while trailing earnings are $0.94 per share.

SIRIUS XM Radio Inc. (NASDAQ:SIRI): SIRI shares recently traded at $2.04,. They have traded in a 52-week range of $1.27 to $2.44. Volume today was 133,885 shares versus a 3-month average volume of 53,620,600 shares. The company’s trailing P/E is 51.00, while trailing earnings are $0.04 per share.

AMC Networks Inc. (NASDAQ:AMCX): AMCX shares recently traded at $39.24,. They have traded in a 52-week range of $29.66 to $44.21. Volume today was 0 shares versus a 3-month average volume of 349,890 shares. The company’s trailing P/E is 22.30, while trailing earnings are $1.76 per share.

To contact the reporter on this story: Ashley Cloninger at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com