Paramount Skydance (NASDAQ:PSKY) Shares Down 5.5% on Analyst Downgrade

Posted by Brenda Bartman on May 5th, 2026

Shares of Paramount Skydance Corporation (NASDAQ:PSKY – Get Free Report) dropped 5.5% on Tuesday after Wells Fargo & Company lowered their price target on the stock from $8.00 to $7.00. Wells Fargo & Company currently has an underweight rating on the stock. Paramount Skydance traded as low as $10.17 and last traded at $10.5230. Approximately 2,646,027 shares traded hands during trading, a decline of 77% from the average daily volume of 11,480,847 shares. The stock had previously closed at $11.13.

Several other equities research analysts have also recently weighed in on the company. Morgan Stanley upgraded Paramount Skydance from an “underweight” rating to an “overweight” rating and increased their target price for the company from $11.00 to $14.00 in a report on Thursday. Guggenheim dropped their target price on Paramount Skydance from $14.00 to $12.00 and set a “neutral” rating for the company in a report on Tuesday. Zacks Research upgraded Paramount Skydance from a “strong sell” rating to a “hold” rating in a report on Friday, February 6th. TD Cowen dropped their target price on Paramount Skydance from $15.00 to $13.00 and set a “hold” rating for the company in a report on Thursday, February 26th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Paramount Skydance in a report on Friday, March 27th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and eight have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average price target of $12.77.

View Our Latest Report on Paramount Skydance

Key Headlines Impacting Paramount Skydance

Here are the key news stories impacting Paramount Skydance this week:

Positive Sentiment: Q1 results beat expectations — PSKY reported $0.23 EPS vs. $0.15 consensus and ~$7.35B revenue, driven by streaming and studio strength; management reaffirmed ~$30B FY26 revenue guidance, supporting the rally. Paramount Stock Edges Higher On Q1 Double Beat
Positive Sentiment: Streaming growth and cost cuts boosted margins — management cited Paramount+ gains and company-wide cost-cutting that lifted pre-tax profit, indicating operating leverage if streaming momentum continues. Paramount Skydance first-quarter profit benefits from cost-cutting
Positive Sentiment: M&A and product roadmap progress — company says the Warner Bros. Discovery (WBD) merger is on track and aims for a unified streaming platform by mid‑2026, which could drive longer‑term scale and ad revenue recovery in H2. Paramount targets unified streaming platform by mid-2026
Neutral Sentiment: Content-licensing strategy maintained — management says it will continue licensing select marquee content to third parties to attract talent and monetize IP, a strategic trade-off between direct revenue and broader content economics. Paramount Will Keep Licensing Some Content To Third Parties
Neutral Sentiment: Subscriber detail is mixed — total streaming revenue grew, but some reports note Paramount+ subscriber gains slightly missed expectations; this tempers how quickly advertising and ARPU gains may materialize. Paramount beats earnings expectations with WBD deal on the horizon
Negative Sentiment: Guggenheim cut its price target to $12 and set a “neutral” rating — the downgrade reduces analyst upside (Guggenheim’s $12 target implies limited room above current levels) and could cap further near‑term gains. Guggenheim lowers PSKY price target

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in PSKY. Vanguard Group Inc. purchased a new position in shares of Paramount Skydance in the 3rd quarter valued at approximately $678,726,000. State Street Corp purchased a new position in shares of Paramount Skydance in the 3rd quarter valued at approximately $524,371,000. Invesco Ltd. purchased a new position in shares of Paramount Skydance in the 3rd quarter valued at approximately $288,551,000. Barclays PLC purchased a new position in shares of Paramount Skydance in the 3rd quarter valued at approximately $258,196,000. Finally, Contrarius Group Holdings Ltd purchased a new position in shares of Paramount Skydance in the 3rd quarter valued at approximately $186,674,000. Hedge funds and other institutional investors own 73.00% of the company’s stock.

Paramount Skydance Trading Down 4.4%

The company has a market cap of $11.83 billion, a PE ratio of 16.89, a PEG ratio of 0.56 and a beta of 1.43. The company has a current ratio of 1.26, a quick ratio of 1.12 and a debt-to-equity ratio of 1.03. The stock has a 50 day moving average price of $10.51 and a 200 day moving average price of $12.58.

Paramount Skydance (NASDAQ:PSKY – Get Free Report) last released its earnings results on Monday, May 4th. The company reported $0.23 EPS for the quarter, beating analysts’ consensus estimates of $0.15 by $0.08. The company had revenue of $7.35 billion during the quarter. Paramount Skydance had a positive return on equity of 3.82% and a negative net margin of 2.15%.During the same quarter in the previous year, the business earned $0.22 EPS. Sell-side analysts predict that Paramount Skydance Corporation will post 0.79 EPS for the current fiscal year.

Paramount Skydance Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 15th will be paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Monday, June 15th. Paramount Skydance’s dividend payout ratio is currently 31.75%.

About Paramount Skydance

(Get Free Report)

Paramount Skydance Media Group (Nasdaq: PSKY) is a media and entertainment company created through the proposed combination of Paramount Global’s filmed entertainment and streaming operations with Skydance Media, a privately held content studio. The combined business will encompass the development, production and distribution of feature films, television programming and digital content, drawing on a library of legacy Paramount Pictures franchises alongside Skydance’s blockbuster tentpoles and animation slate.