Dreamworks Animation Drops 4% A Week Ahead Of Earnings


Dreamworks Animation is down nearly 4% a week ahead of its earnings call.

Stifel Nicolaus analyst Benjamin Mogil downgraded the studio’s rating from hold to sell and cut its price target from $28 to $25.

Since November shares have slid below their 10-week and 20-week moving averages.

Mogil attributed the cut to worries about children’s DVD sales and the stock being priced too high.

The company is expected to discuss the underperforming DVD sales for “Shrek Forever After” in the earnings report.

Mogil said the Feb.25 release of the movie “Megamind” on DVD could help the stock rebound.

However, the stock saw very high trading volume on Tuesday with 904,267 shares changing hands.

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