Critical Insights From Genius Sports Analyst Ratings: What You Need To Know

Throughout the last three months, 9 analysts have evaluated Genius Sports GENI, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Genius Sports, presenting an average target of $8.83, a high estimate of $10.00, and a low estimate of $7.50. A negative shift in sentiment is evident as analysts have decreased the average price target by 11.7%.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Genius Sports by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Genius Sports. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Genius Sports compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Genius Sports's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Get to Know Genius Sports Better

Genius Sports Ltd is a B2B provider of scalable, technology-led products and services to the sports, sports betting, and sports media industries. Its services are organized into three key product areas including Sports Technology and Services; Betting Technology, Content and Services; and Media Technology, Content and Services. All of its products are powered by proprietary technology and robust data infrastructure. It generates maximum revenue from the Betting Technology, Content and Services division. Geographically, the company derives a majority of its revenue from Europe.

Understanding the Numbers: Genius Sports's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Genius Sports showcased positive performance, achieving a revenue growth rate of 20.73% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Genius Sports's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -30.24%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Genius Sports's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -6.68%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -4.97%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.03, Genius Sports adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.