One of Wall Street’s heaviest hitters has confirmed a sizable investment in Sphere Entertainment (NYSE:SPHR). Ken Griffin, founder and CEO of Citadel Securities, had previously held a 1.5% in the entertainment company. But earlier this week, the hedge fund titan disclosed that since April, Citadel has added over 900,000 shares of SPHR stock to its holdings, increasing its position by 1.5 million, amounting to a roughly 5.3% stake since April 2024. Given how well SPHR has performed over the past six months, it’s safe to say that this Sphere bet has been an excellent investment so far.
What’s Happening With SPHR Stock
While trading has been slightly volatile so far today, SPHR stock remains in the green for the week. However, the more important statistics are that it has climbed more than 25% over the past month and 30% for the past six. The live entertainment and media company is enjoying an excellent summer, and investors who bought in earlier this year are enjoying excellent gains.
Other prominent business leaders are taking an interest in SPHR stock as Griffin doubles down. Someone else who knows both sports and investing recently announced a stake in Sphere as well. Per Sportico:
“Griffin boosted his position at the same time as another hedge fund giant was investing in the Sphere. Last month, New York Mets owner Steve Cohen disclosed a new 5.5% stake in Sphere Entertainment in an SEC filing for his hedge fund Point72 Asset Management. The move aligned Cohen with fellow New York team owner Jim Dolan, whose family has voting control of the Sphere, in addition to the New York Knicks and New York Rangers.”
Sphere Entertainment’s primary brands include the sphere-shaped Las Vegas Area, from which its name derives, and MSG Networks, home of the Knicks and Rangers. By virtue of owning both, it can offer investors exposure to both the sports and live entertainment markets, making it a rare leader among entertainment stocks. Even after the company missed Wall Street estimates on both earnings-per-share (EPS) and revenue for the fourth quarter of 2023, SPHR stock has successfully rebounded and displayed impressive progress since then.
Why It Matters
Wall Street sentiment towards Sphere Entertainment has been somewhat mixed recently. Earlier this month, Morgan Stanley analyst Benjamin Swinburne raised his SPHR stock price target from $42 to $45. While he maintains a “hold” rating, this still implies an upside potential of more than 2%.
However, the fact that both Griffin and Cohen are staking significant bets on Sphere should reassure investors who have doubts about the stock. Data from WhaleWisdom shows that since Q1 2024, the number of funds holding SPHR stock has increased, as have the number of new positions. Some of the financial world’s most notable experts have made it clear that they believe Sphere is on track toward growth in 2024.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
