Lionsgate Studios (LION) Insider Share Sale Analysis

According to SEC Form 4 filings, two senior executives of Lionsgate Studios (LION) sold shares in late December 2025 [1]:

• Transaction Date
  : December 23, 2025
• Number of Shares Sold
  : 21,748 common shares
• Selling Price
  : Weighted average of $9.01 per share
• Transaction Value
  : Approximately $196,000
• Shares Held After Transaction
  : 3,061,213 shares
• Official Reason
  : Year-end tax planning

• Transaction Date
  : December 22, 2025
• Number of Shares Sold
  : 195,000 common shares
• Selling Price
  : Weighted average of $8.28 per share
• Transaction Value
  : Approximately $1.615 million
• Official Reason
  : Year-end tax planning

: Approximately $1.81 million, accounting for only 0.066% of the company’s current market capitalization of $2.73 billion, which is a relatively small proportion [0].

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:

• X-axis
  : Trading days from October to December 2025
• Y-axis
  : Stock price (USD)
• Blue Dashed Line
  : December 22, 2025 (CEO Feltheimer’s sale date)
• Orange Dashed Line
  : December 23, 2025 (Vice Chairman Burns’s sale date)

According to brokerage API data [0]:

Time Period	Change
1 month	+26.41%
3 months	+35.49%
6 months	+60.65%
Year-to-date	+20.13%

:

• Current Price
  : $9.43 (closing price on December 29, 2025)
• 20-Day Moving Average
  : $8.12 (stock price is ~16.20% above MA20)
• 50-Day Moving Average
  : $7.24 (stock price is ~30.28% above MA50)
• 52-Week Range
  : $5.54 - $9.44
• Current price is close to the 52-week high

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According to SEC filings, both executives cited

as the reason for the sale [1]. This is a common, relatively neutral reason for insider trading:

• Tax Planning
  : Executives often sell shares at the end of the year to realize capital gains or losses for tax optimization
• Not a Confidence Signal
  : Such sales are usually not seen as a signal of lack of confidence in the company’s prospects
• Small Proportion
  : Burns still holds over 3 million shares, indicating his continued large position

This insider trading occurred against the following backdrop [1][2]:

• Strong Uptrend in Stock Price
  : Over 35% increase in the past 3 months and over 60% in 6 months
• Active Industry Mergers and Acquisitions
  : Media industry M&A activity is accelerating; Starz (former Lionsgate subsidiary) is in merger discussions with A+E and others
• Positive Company Developments
  : Lionsgate recently partnered with FreeWheel to strengthen FAST channel advertising business
• Analysts Are Optimistic
  : All covering analysts have given a “Buy” rating, with a consensus target price of $9.00

:

• ✓
  Senior executives still hold large stakes
  : Burns still holds over 3 million shares after the transaction
• ✓
  Small proportion of shares sold
  : Only 0.066% of the total market capitalization
• ✓
  Clear tax planning reason
  : Not due to pessimism about the company
• ✓
  Sale occurred at a high stock price
  : Rational profit-taking behavior

:

• ⚠
  Two executives sold consecutively
  : CEO and Vice Chairman sold within two days
• ⚠
  Stock price is near 52-week high
  : May reflect some executives believe current valuation is reasonable
• ⚠
  Company is not yet profitable
  : TTM EPS is -$0.12, P/E ratio is negative

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According to the analysis, this insider trading should be interpreted as a

:

:

• Clear tax planning motivation
• Executives still maintain large positions
• Small proportion of shares sold
• Sale occurred during a strong uptrend in stock price

:

• Two top executives sold simultaneously
• Stock price is near annual high
• Company has not yet achieved sustained profitability

Based on current information, investors should adopt the following strategies:

:

• No need for panic selling
  : Insider sale scale is small and motivation is clear
• Focus on company fundamentals
  : Key focus on Q1 2026 earnings report (expected to be released on February 5)
• Set stop-loss levels
  : Consider setting stop-loss at $8.50-$9.00 to protect gains
• Diversify risks
  : If position is too heavy,适当 take profits on part of the holdings

:

• Wait for a better entry point
  : Current stock price is near the 52-week high; wait for a pullback to the $8.00-$8.50 range
• Monitor M&A progress
  : Starz’s merger discussions with A+E and others may impact Lionsgate’s valuation
• Evaluate industry trends
  : Development of FAST channels and streaming business is a key growth driver

• Q1 2026 Earnings Report
  (February 5): Focus on revenue growth, profitability improvement, and cash flow
• Insider Trading Activity
  : Increase vigilance if more executives sell
• Institutional Position Changes
  : Monitor adjustments in positions by large institutional investors
• Industry M&A Progress
  : Media industry consolidation may bring valuation revaluation opportunities

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Although the insider trading signal is relatively mild, investors should still be aware of the following risks:

1. Valuation Risk
   : Stock price has risen over 60% in 6 months, which may be overbought in the short term
2. Profitability Risk
   : Company has not yet achieved sustained profitability; TTM net profit margin is negative
3. Industry Competition
   : Streaming and content production industries are highly competitive
4. Macroeconomic Environment
   : Slowdown in advertising spending may affect media companies’ revenue

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The share sales by Lionsgate Studios Vice Chairman Michael Burns and CEO Jon Feltheimer are, overall, more like

rather than a strong signal of lack of confidence in the company’s prospects. Both executives still hold large stakes, the proportion sold is minimal, and the company’s stock price is in a strong uptrend.

Investors should view this as a

but do not need to overreact. More importantly, pay attention to the company’s upcoming earnings report, industry M&A progress, and subsequent insider trading patterns.

[1] Stock Titan - “Lionsgate Studios (LION) Vice Chair reports year-end tax sale of shares” (SEC Form 4 filing)
[2] Trefis - “Lionsgate Stock (+7.4%): FAST Ad Growth + Analyst Upgrades Drive Rally” (December 24, 2025)
[3] Stock Titan - “Lionsgate Studios (LION) CEO Jon Feltheimer reports insider share sale” (SEC Form 4 filing)
[0] Gilin API Data (stock prices, financial data, technical indicators, Python calculations)