One year after Summit deal, share price hits four all-time highs
As Lionsgate marks the one-year anniversary of buying Summit, its stock has hit four consecutive all-time highs this week, each at more than double the stock price when the deal closed a year ago.Lionsgate edged up 3¢ to $17.81 after hitting a high of $17.96 in trading Friday on the New York Stock Exchange. For the four sessions, the issue gained 50© or 3%. When Lionsgate completed its $412.5 million acquisition of the Summit deal on Jan. 13, Lionsgate’s shares were trading at $8.60. Wall Street is optimistic about the next three “Hunger Games” films, the potential development of other franchises, the deleveraging of the company’s balance sheet, the possibility of a small dividend and the longterm prospects of TV series “Anger Management.” Analysts have a consensus price target of $19.20. On Wednesday, Lionsgate and American Greetings Properties announced a home-entertainment distribution agreement for the new TV series “Care Bears: Welcome to Care-a-Lot” along with an extension of their existing contract, with Lionsgate retaining rights to the two previous Care Bears television series and five Care Bears movies.
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