You will be redirected back to your article in seconds

Lionsgate Stock Down as Chairman Sells 20% Stake for $320 Million

Shares of Lionsgate have declined nearly 7% following chairman Mark Rachesky’s announcement that he will sell 10 million shares, representing about 20% of his holdings in the studio, for $320 million.

Rachesky priced the secondary offering Wednesday at $32 a share, marking the first time he has sold shares in Lionsgate in the decade he’s been invested in the company. The stock declined 6.6%, falling $2.23 to $31.45.

The sale, announced after the market closed Tuesday, is being made through a secondary offering through his MHR Fund Management, which holds 51.26 million Lionsgate shares. Rachesky’s stake will go from 36% to 28%.

In a Securities and Exchange Commission 8K filing, management also reiterated its three-year EBITDA guidance of $1.2 billion to $1.3 billion, but indicated it may be trending toward the lower end of that guidance.

“We see any weakness in LGF shares as a buying opportunity and reiterate our Overweight rating and $38 price target,” said Piper Jaffray in a research note.

Wunderlich Securities said it was maintaining its $40 a share target on the stock. FBR Capital Markets trimmed its target by $1 to $39, pointing to the expected performances of the final “Hunger Games” film, which opens in November, and current release “Insurgent.”

“We believe this presumes a ‘Mockingjay Part 2’ performance on par with ‘Part 1,’ while a lift for the finale is possible,” it said. “We also believe the company had seen ‘Insurgent’ trending domestically closer to ‘Divergent’s’ $148 million. Instead, we see $123 million. Internationally, ‘Insurgent’ is already nearly at the $127 million for ‘Divergent,’ and we believe can get close to $160 million; but this performance was expected.”

More Film

  • Brett Leonard Boards 'Elijah'

    Film News Roundup: 'Lawnmower Man' Director Brett Leonard Boards 'Elijah'

    In today’s film news roundup, “Elijah” gets a director, a French fry documentary starts shooting and “Uglydolls” moves its release date forward. PROJECT LAUNCH Brett Leonard, best known for directing ”The Lawnmower Man” and “Virtuosity,” will direct the supernatural feature film “Elijah,” based on the Old Testament prophet. The project is set up at Winter [...]


    SAG-AFTRA Commercial Negotiations Set for February

    With no fanfare, SAG-AFTRA and the ad industry have set a mid-February start for negotiations for a successor deal to the union’s master contract, Variety has learned. The current three-year deal — which covers about $1 billion in annual earnings — expires on March 31. SAG-AFTRA and the Joint Policy Committee of the ad industry [...]


    Oscar Nominee Sondra Locke Dies at 74

    Actress and director Sondra Locke, who received a supporting actress Oscar nomination in her first movie role for “The Heart is a Lonely Hunter,” died Nov. 3 at 74. The Los Angeles County Public Health Department confirmed her death. She died due to breast and bone cancer, according to Radar Online, which reported that she [...]

  • Clint Eastwood and Alison Eastwood'The Mule'

    Clint Eastwood: Why Alison Eastwood Came Out of Acting Retirement for Her Dad

    Clint Eastwood’s daughter Alison Eastwood was done with acting after appearing in 2014’s “Finding Harmony.” Or so she thought. It was a Friday night and she and her husband were heading to dinner when her father’s producer Sam Moore called. “He [says], ‘You know, your dad wants you to do this film,” Alison recalls. “I [...]

  • 'Dead Women Walking' Review: Uncompromising, Powerful

    Film Review: 'Dead Women Walking'

    The sober and gripping “Dead Women Walking” focuses on the final days of a series of female inmates facing the death sentence. Divided into nine chapters, each inching its way inexorably closer to the moment of execution, the drama turns the fragmentation of its approach to a powerful advantage. Not only do the individual stories [...]

  • Sam Mendes

    Sam Mendes' World War I Drama '1917' Set for Awards-Season Launch on Christmas 2019

    Universal Pictures has given an awards-season release date of Dec. 25, 2019, to Sam Mendes’ World War I drama “1971.” Steven Spielberg’s Amblin Partners is producing “1917” through its DreamWorks Pictures brand. “1917” will open in limited release on Christmas Day then go wide two weeks later on Jan. 10, 2020. Mendes wrote the script [...]

  • Ventana Sur Queer Latin Film Panel

    Ventana Sur: Panel Talks Merits, Setbacks in Latin Queer Cinema

    BUENOS AIRES — Four venerable professionals from the cinema world joined on Monday evening for Queer Cinema In Latin America, a frank discussion on Latin America’s role within the queer filmscape for Ventana Sur’s Industry conference series held at the UCA campus in Buenos Aires. Touching on advancements in character arc and notable achievements in [...]

More From Our Brands

Access exclusive content