What to Know About This Fund's $85 Million Lionsgate Buy During a Breakout Quarter
Key Points
Shapiro Capital initiated a new stake in Lionsgate Studios, with 9,309,570 shares added last quarter.
The estimated trade value was $85.91 million (based on quarterly average prices).
Meanwhile, the quarter-end position value increased by $89.28 million, reflecting both purchase and share price movement.
- 10 stocks we like better than Lionsgate Studios ›
On May 15, 2026, Shapiro Capital Management disclosed a new position in Lionsgate Studios (NYSE:LION), acquiring 9,309,570 shares in an estimated $85.91 million trade based on quarterly average pricing.
What happened
According to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Shapiro Capital Management initiated a new position in Lionsgate Studios (NYSE:LION) by acquiring 9,309,570 shares. The estimated transaction value is $85.91 million, based on the average closing price for the first quarter of 2026. The quarter-end value of the position stood at $89.28 million, which reflects both the purchase and price changes during the period.
What else to know
- This was a new position; the post-trade stake represents 5.58% of the fund’s 13F reportable assets under management
- Top holdings after the filing:
- NYSE: LION: $89,278,778 (5.6% of AUM)
- NYSE:CALY: $72,214,989 (4.5% of AUM)
- NYSE:FDS: $71,724,058 (4.5% of AUM)
- NYSE:ELAN: $71,004,617 (4.4% of AUM)
- NASDAQ:TENB: $70,199,821 (4.4% of AUM)
- As of Friday, shares of Lionsgate Studios were priced at $14.95, up a staggering 123% over the past year and well outperforming the S&P 500, which is instead up about 28%.
Company overview
| Metric | Value |
|---|---|
| Market Capitalization | $3.2 billion |
| Revenue (TTM) | $2.80 billion |
| Net Income (TTM) | ($101.1 million) |
| Price (as of Friday) | $14.95 |
Company snapshot
- Lionsgate Studios generates revenue through motion picture and television production, distribution, and a large content library spanning over 20,000 titles.
- The company operates a diversified entertainment business model, monetizing original content, franchise brands, and licensing intellectual property across multiple platforms.
- Primary customers include global broadcasters, streaming services, and distributors seeking premium film and television content.
Lionsgate Studios is a leading independent content producer and distributor, leveraging a vast portfolio of film and television assets to drive revenue and brand value. The company’s entrepreneurial approach and ownership of high-value franchises underpin its competitive position in the global entertainment industry. Strategic focus on content creation and multi-platform distribution enables Lionsgate to capitalize on evolving media consumption trends.
What this transaction means for investors
After years of investor skepticism around traditional media businesses and Lionsgate in particular, the company's improving financial performance and growing value of its content library appear to be attracting fresh institutional interest.
In fact, the company's film and television library generated more than $1 billion in trailing 12-month revenue for the third consecutive quarter, creating a recurring revenue stream that can help smooth out the industry's inherently volatile release schedule. Meanwhile, quarterly overall revenue rose to $906.5 million, operating income jumped 52% year over year to $117.5 million, and adjusted operating income before depreciation and amortization (OIBDA) reached its highest quarterly level in 12 years at $165.4 million. Free cash flow totaled $190.4 million during the quarter.
Management highlighted strong performance from The Housemaid, which grossed nearly $400 million globally, while television production remains positioned for growth, with scripted deliveries expected to double in fiscal 2027 versus fiscal 2026.
For long-term investors, the key question going forward is whether Lionsgate can continue turning its franchise portfolio and 20,000-title library into durable earnings growth. Shapiro's sizable new position suggests it sees the recent turnaround as the beginning of that story.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FactSet Research Systems. The Motley Fool recommends Callaway Golf. The Motley Fool has a disclosure policy.
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