Sometimes, it’s hard to see what investors actually want. Media giant Paramount (PARA) declared it was giving away money to shareholders in the form of a dividend today. Despite this, shares still slipped fractionally in Friday afternoon’s trading.
The dividend was not huge. In fact, Paramount announced a cool nickel to anyone holding a Class A or Class B share. That’s right: $0.05 per share, whether it’s a voting share or otherwise. Those holding shares on September 16 will be eligible for the payout, which is set to take place on October 1.
For those who might be concerned about the firm’s ability to afford a dividend, reports note that analysts are looking for better returns to come from Paramount. In fact, Wall Street expects lower revenues but an increase in earnings to $0.12 per share compared to the $0.10 per share from last year. Paramount’s earnings report comes out on August 8.
Paramount Looking to Add as Much Content as Possible
Meanwhile, it was clear that Paramount was looking to put out as much content as it reasonably could in a bid to try and pull attention back to its lineup. Everything from comics to television to movies was getting an update, and with the fall season about to kick off in earnest, the time is rapidly approaching to hunker down in front of televisions in a bid to hide from the weather.
Paramount is currently trying to figure out how to make a Transformers / GI Joe crossover movie, which is apparently proving tougher than expected. Plus, while Star Trek: Lower Decks is about to have its last season as a show, it’s getting a new life as a comic book series instead. And just to top it off, the upcoming Wilderness Reform movie has some new power in its writing stable, as Steve Desmond and Michael Sherman have been tapped to write the script. These two were also writers on Knock at the Cabin, so if you liked that, you should be in for quite a time.
Is Paramount a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on three Buys, seven Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 25.93% loss in its share price over the past year, the average PARA price target of $12.07 per share implies 9.03% upside potential.
