Madison Square Garden Sports Stock Discussion

James Dolan's recent sale of Madison Square Garden Sports shares is the largest insider sale in the past year. The sale's timing and the lack of insider buying over the year, coupled with a history of sales, signal caution for potential investors.

Despite Madison Square Garden Sports' high P/S ratio and slow revenue growth, the market anticipates a turnaround. However, with a lower-than-industry growth forecast, the high P/S ratio may not be sustainable, urging investor caution.

The lawsuit against Dolan could potentially impact the reputation and stock performance of Madison Square Garden Entertainment, Sphere Entertainment, and Madison Square Garden Sports. Dolan's attorney has dismissed the lawsuit as having 'absolutely no merit' and being an 'act of retaliation'.

Jonathan Boyar states that the stock is underpriced owing to the 'Dolan discount'. He suggests measures like selling a minority stake in Knicks or Rangers, triggering a stock buyback or a regular dividend distribution could boost stock value. A total company sale might bring the best payoff.

Barrons sees possible 2024 value in these stocks: Alibaba's cheap trading price with a tenfold revenue increase; Alphabet's expected earnings growth; Berkshire's potential earnings spike; BioNTech's oncology focus; Chevron's low-risk growth and yield; Hertz's value for patient investors; potential returns from Madison Square Garden Sports; PepsiCo's dividends and anticipated earnings; U-Haul's self-storage business.

Madison Square Garden Sports Corp.'s shift to profitability amid share price declines and a total shareholder return (TSR) of -6.3% suggests future possibilities. Yet, reducing revenues and absence of dividends could affect these prospects.

The Sphere arena's uncertain financial viability, along with the drop in MSG Networks profits and the abrupt CFO resignation, could have factored into stock price dip.