Stock has tripled in value since Summit deal
Lionsgate stock keeps roaring, setting another all-time high amid bullishness over its young-adult franchises such as “The Hunger Games” and its TV business.
The stock jumped 3% on Tuesday, rising 79¢, to $26.95. That’s more than three times its $8.60 price when Lionsgate acquired Summit for $412.5 million in January, 2012.
Recent developments in its TV business include ABC’s renewal of Lionsgate’s “Nashville” for a second season and George Lopez’s latest sitcom venture landing at FX with the cabler ordering 10 segments of “Saint George.” The latter will be produced by Lionsgate TV and Debmar-Mercury under Debmar’s “10/90″ model, allowing FX to quickly order 90 additional episodes if the initial 10-episode run hits predetermined ratings targets.
Lionsgate has gained over 60% this year on optimism over its young-adult franchises — including the next three “Hunger Games” films, “Ender’s Game” and “Divergent” — and better-than-expected quarterly results. That’s been fueled by recent price target hikes, including Alan Gould of Evercore going from $24 to $30.
“Ender’s Game” debuts Nov. 1 and “The Hunger Games: Catching Fire,” starring Jennifer Lawrence, opens three weeks later on Nov. 22. “Divergent,” starring Shailene Woodley, opens March 21.