Billionaire investor Mario Gabelli might not sell his Paramount (NASDAQ:PARA) shares even if it merges with Skydance, as he needs to see the transaction’s structure first, according to an interview with the New York Post. Gabelli, who is a key voting shareholder with Class A shares (NASDAQ:PARAA), mentioned he currently has no opinion on the merger but noted that the new Skydance deal seems better for minority shareholders like himself.
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National Amusements, which owns 77% of Paramount’s voting shares, doesn’t require non-Redstone shareholders’ approval for the merger. Gabelli pointed out that if Skydance pays $1.75 billion and National Amusements has $500 million in debt, $1.25 billion would be left for shareholders. This would equate to $20 per share. Paramount shares rose 3.05% to $11.81, with Class A shares up 1.84% to $20.47.
Investor Sentiment for PARA Stock is Currently Very Negative
The sentiment among TipRanks investors is currently very negative. Out of the 743,899 portfolios tracked by TipRanks, 0.3% hold PARA stock. In addition, the average portfolio weighting allocated towards PARA among those who do have a position is 4.13%. This suggests that investors of the company are fairly confident about its future.
However, in the last 30 days, 1.7% of those holding the stock decreased their positions. As a result, the stock’s sentiment is below the sector average, as demonstrated in the following image:
Is Paramount a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on two Buys, five Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 27% loss in its share price over the past year, the average PARA price target of $11.68 per share implies 1.92% upside potential.
