Why LionsGate (LGF) Is Gaining on Monday

NEW YORK (TheStreet) -- LionsGate (LGF) is climbing higher on Monday after Divergent, its film based on the bestselling young-adult trilogy, dominated the weekend box office.

By midafternoon, shares had added 4.3% to $28.78.

Trading volume of 5.2 million is more than double its three-month daily average of 2.2 million.

The movie, the first of three in the series, generated $56 million in domestic ticket sales over the weekend, in line with forecasts for between $50 million and $68 million for its opening weekend at U.S. and Canadian theaters.

Though its opening was nearly a third of what the first film in The Hunger Games franchise generated over the same period, the strong start was enough for the studio to greenlight the film's sequel Insurgent, which is slated for release in March 2015.

"We're off to a great start with strong numbers from all regions of the country, urban, suburban and rural alike," CEO Jon Feltheimer said in a statement on Friday. "We're confident that Divergent is on its way to becoming another important franchise for us."

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TheStreet Ratings team rates LIONS GATE ENTERTAINMENT CP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate LIONS GATE ENTERTAINMENT CP (LGF) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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