ViacomCBS stock plunged 23.2% on Wednesday after the diversified mass media conglomerate announced the pricing of its $3 billion new stock sale.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
ViacomCBS (VIAC) plans to invest the net proceeds from the sale in its streaming services. However, the tough competitive landscape and execution risk is keeping investors on edge and has led to a sharp sell-off in the stock.
Notably, VIAC has lost about 28% of its value in the last three trading days.
ViacomCBS’s stock offerings comprise of two concurrent offerings of 20 million shares of its Class B common stock and 10 million shares of Series A Mandatory Convertible Preferred Stock. The company priced the Class B common stock offering at $85 per share and the Mandatory Convertible Preferred Stock offering at $100 per share. The offering is anticipated to close on March 26. (See ViacomCBS stock analysis on TipRanks)
On March 22, Benchmark analyst Daniel Kurnos raised the stock’s price target to $120 (71% upside potential) from $80 and reiterated a Buy rating. Kurnos remains upbeat on VIAC’s prospects and expects it to crush near-term estimates. He expects VIAC stock to trend higher.
Overall, the Street has a Hold consensus rating on the stock based on 8 Holds, 5 Buys and 7 Sells. The average analyst price target of $58.41 implies downside potential of about 16.7% to current levels. Shares have skyrocketed over 521% over the past year.
Related News:
ViacomCBS To Raise $3B In Stock Offerings; Shares Slip
CuriosityStream’s 2021 Revenue Outlook Tops Estimates After 4Q Beat
Adobe Lifts FY21 Outlook After 1Q Beat; Street Sees 22% Upside