
Lionsgate Studios: Insiders Are Buying. Should the Stock Get the Lion's Share of Your Portfolio?
🎬 Lights, camera… insider action! Liberty 77 Capital L.P., the private equity firm led by none other than former U.S. Treasury Secretary and Hollywood financier Steven Mnuchin, just scooped up millions worth of Lionsgate Studios Corp. (NYSE: LION, $5.87, +1.38%). 🦁
🛒 Insider Action: When a Lion Roars, Wall Street Listens
📅 June 17, 2025: Liberty 77 pounced on 907,634 shares at $5.81, a cool $5.27M added.
📅 May 28, 2025: Mnuchin’s firm went full-on lion mode—7.4 million shares at $6.58. Total bet: $48.8M+.
That’s 8.3 million shares in a few weeks. 🐾 That’s not a nibble—it’s a bite.
🔍 For full Institutional Ownership breakdown (to be confirmed after recent split of Lionsgate and Starz), see here.
🕴️ Wait… Steven Mnuchin? Yes, That Mnuchin.
🎩 Goldman Sachs veteran
💼 Trump-era U.S. Treasury Secretary
🎥 Hollywood producer (via Dune Entertainment – Avatar, anyone?)
📍 Now backing studios with Liberty 77 Capital
With his private equity firm Liberty 77, Mnuchin's making a bold play on Lionsgate—and perhaps Hollywood’s next chapter.
🎥 About Lionsgate
📍 HQ: Santa Monica, CA
🎬 Famous For: Hunger Games, John Wick, Twilight
📚 Library: 20,000+ titles = serious rerun capital
🔄 Now fully separated from Starz, Lionsgate is a pure-play studio with fewer distractions and more boom-boom-pow.
💰 Financials: A Plot Twist Worth Watching?
Q4 FY2025 (ended Mar 31)
📈 Revenue: $1.1B (▲ 22% YoY)
📊 Net Income: $21.9M (GAAP), $60.9M adjusted
📚 Library Revenue (TTM): $956M – all-time high
🍿 Motion Picture Segment: Highest profit in a decade
📺 TV Segment: Revenue up, profit down (tough comp)
💸 Free Cash Flow: $395.3M
🪙 Valuation Snapshot
P/S: 0.42
EV/Revenue: 1.33
EV/EBITDA: 5.87
⚖️ Verdict: Cheap-ish. Profitable-ish. Interesting? Definitely.
👉 Want the full picture? Dive into Lionsgate’s financials here.
🛑 Risks, Popcorn-Style 🍿
-
🎬 Box Office is Brutal
Borderlands cost $110M… and grossed $32.9M. That’s not a plot twist—it’s a horror film.
The Crow, Megalopolis… may be art-house hits or financial flops. -
🧨 Credit Drama: Fitch Isn’t a Fan
Credit rating: B-. It’s not failing, but it’s sweating. -
🐭 Mouse vs. Goliath
Lionsgate is a mouse compared to Disney+, Netflix, and Amazon Prime. Co-productions help get movies made, but by the time the credits roll, so often do the profits—out the door. -
📉 Big Write-downs
$1.5 Billion in goodwill impairment. Yikes. -
🧐 Institutional Support TBD
Mnuchin’s bet is bold, but still a solo act (for now).
💡 Curious about another deep oil exploration play?
Check our takes on UnitedHealth Group or even Oscar Health.
🧾 TL;DR
✅ Insiders are buying big
🧮 Numbers are solid-ish
🔍 Valuation? Reasonable, maybe cheap
🔥 Risks? Real. It’s Hollywood, not Hogwarts
🌟 Star power costs money—and profits
Studios are like soccer clubs: they spend big to secure stars, but don't always win big—or burn through the budget before the end credits roll. 🎭
🧠 Final Thought
Should you invest?
If you believe in content, the rebound of theatrical, the value of streaming libraries, and the cunning of insiders like Mnuchin—maybe. Just don’t expect a fairy-tale ending every time. It’s Hollywood after all. 🎥🦁📉
🚨 Disclaimer:
Invest at your own risk. Or direct your own horror film. 🎥🔪
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