Billionaire investor Mario Gabelli may not sell Paramount (Nasdaq:PARA) won’t take a stake in any merger with Skydance because it needs to see how the deal is structured first, he said in an interview. New York PostMr. Gabelli is the majority voting shareholder of Class A shares (Nasdaq:PARAA) said he had no opinion on the merger at this time, but noted that Skydance’s new deal appears to be better for minority shareholders like himself.
National Amusements, which owns 77 percent of Paramount’s voting stock, does not need shareholder approval other than Redstone for the merger. Gabelli noted that if Skydance pays $1.75 billion and National Amusements takes on $500 million in debt, shareholders would be left with $1.25 billion, which equates to $20 a share. Paramount shares rose 3.05 percent to $11.81, while Class A shares rose 1.84 percent to $20.47.
Investor sentiment towards PARA stock is currently very negative
Investor sentiment on TipRanks is currently very negative. Of the 743,899 portfolios tracked by TipRanks, 0.3% hold PARA stock. Furthermore, among investors who hold PARA stock, the average portfolio weight is 4.13%, suggesting that the company’s investors are fairly confident about the company’s future.
However, over the past 30 days, 1.7% of those who hold the stock have reduced their positions. As a result, sentiment for this stock is below the sector average, as shown in the following chart.
Is Paramount a good stock to buy?
Turning to Wall Street, analysts have a consensus rating of Moderate Sell for PARA stock, based on 2 Buys, 5 Holds, and 9 Sells over the past three months, as shown in the chart below: After a 27% drop in the stock price over the past year, the average price target for PARA is $11.68 per share, indicating a potential upside of 1.92%.
