Sphere Entertainment shares slide 12% after Craig-Hallum downgrade
1 min read | Published on 06 Oct 2026, 12:05 AM |Updated on 06 Oct 2026, 12:05 AM
Reviewed bySuketu GScanX News Team
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- Shares fell nearly 12% after Craig-Hallum downgraded the stock to Hold
- Price target cut to $132 from $170, signaling a cautious outlook
- RSI stands at 23.75, indicating deeply oversold technical conditions
- Wall Street estimates Q1 FY27 loss narrowing to $1.33 per share
*this image is generated using AI for illustrative purposes only.
Sphere Entertainment Co. shares dropped nearly 12% on Monday following a downgrade by Craig-Hallum, which shifted its rating to Hold from Buy and sharply reduced its price forecast.
The investment firm lowered its price target to $132 from $170, a reduction of $38 that signals a more cautious outlook for the company. This action comes just weeks after CNBC’s Jim Cramer recommended buying the stock during his “Mad Money Lightning Round” on September 14, describing it as “amazing.”
Technical setup weakens
The stock remains in a clear short-term downtrend, trading 18.3% below its 20-day simple moving average (SMA) and 23.2% below its 50-day SMA. It is also 12.2% below the 200-day SMA. While the 50-day SMA remains above the 200-day SMA, suggesting the longer-term structure is not fully broken, the immediate momentum is deeply oversold with a relative strength index (RSI) of 23.75.
| Technical Indicator | Level | Status |
|---|---|---|
| Price | $113.33 | Down 11.63% |
| RSI | 23.75 | Oversold |
| Resistance | $118.00 | Key level to reclaim |
| Support | $104.50 | Critical floor |
An RSI below 30 indicates selling may be stretched, potentially increasing the likelihood of a rebound, though it does not guarantee a bottom. Key resistance sits near $118, while support lies at $104.50.
What the numbers show
A divergence exists between short-term technical weakness and longer-term institutional sentiment. Despite the sharp selloff and bearish technicals, Sphere Entertainment maintains a Momentum score of 88.9 out of 100 on the Benzinga Edge scorecard. Furthermore, recent analyst actions have been predominantly positive: Guggenheim raised its price target to $208 on September 2, Piper Sandler initiated coverage with an Overweight rating and a $185 target on August 20, and BTIG maintained a Buy rating with a $190 target on August 3. This contrasts sharply with the single downgrade driving Monday’s decline.
Earnings outlook
Wall Street expects Sphere Entertainment to report a loss of $1.33 per share in its upcoming November 3 earnings report, an improvement from a loss of $2.80 per share a year earlier. Revenue is projected to rise to $288.10 million from $262.51 million. The stock carries a Buy consensus rating with an average price target of $178.30.
Disclaimer: This article is AI-generated using data from ViewTrade. ScanX is not liable for any inaccuracies.
How might the divergence between Craig-Hallum’s downgrade and the bullish consensus from Guggenheim, Piper Sandler, and BTIG influence institutional positioning ahead of the November 3 earnings report?
Can Sphere Entertainment sustain its high Benzinga Momentum score of 88.9 if the stock fails to reclaim the $118 resistance level following this oversold RSI reading?
What specific operational metrics or guidance updates in the upcoming earnings call would be required to validate the $178.30 average price target amidst the current technical downtrend?
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