Caesars Entertainment, Inc. (NASDAQ:CZR) Receives Average Rating of "Hold" from Brokerages

Key Points

• Caesars Entertainment currently has a consensus brokerage rating of “Hold” from 19 analysts, with an average 12-month price target of $32.80. The analyst mix includes one sell, 13 hold, and five buy ratings.
• The stock has been boosted by takeover speculation, with reports that Fertitta Entertainment is proposing to buy Caesars for $31.00 per share in cash. That bid could act as a valuation floor if the deal advances.
• Despite the M&A buzz, Caesars faces legal and sentiment headwinds, including a shareholder-rights investigation and notable insider selling by executives and directors. The company also recently missed earnings per share expectations, adding to investor caution.

Shares of Caesars Entertainment, Inc. (NASDAQ:CZR - Get Free Report) have been assigned an average rating of "Hold" from the nineteen research firms that are covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, thirteen have given a hold recommendation and five have given a buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $32.80.

A number of equities research analysts have issued reports on the company. Citigroup upped their price objective on Caesars Entertainment from $23.00 to $30.00 and gave the company a "neutral" rating in a research report on Thursday, April 16th. Zacks Research upgraded Caesars Entertainment from a "strong sell" rating to a "hold" rating in a research report on Friday, March 6th. Susquehanna upgraded Caesars Entertainment from a "positive" rating to a "positive" rating in a research report on Friday, May 29th. Truist Financial downgraded Caesars Entertainment from a "buy" rating to a "hold" rating and decreased their price objective for the company from $32.00 to $31.00 in a research report on Friday, May 29th. Finally, Texas Capital downgraded Caesars Entertainment from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 1st.

Caesars Entertainment Price Performance

NASDAQ:CZR opened at $29.51 on Friday. The company has a current ratio of 0.85, a quick ratio of 0.83 and a debt-to-equity ratio of 3.25. The company has a market capitalization of $6.01 billion, a P/E ratio of -12.45 and a beta of 1.77. Caesars Entertainment has a 12 month low of $17.86 and a 12 month high of $31.58. The business's 50-day moving average is $27.82 and its 200 day moving average is $25.13.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last posted its earnings results on Tuesday, April 28th. The company reported ($0.48) EPS for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.24). The firm had revenue of $2.87 billion during the quarter, compared to analysts' expectations of $2.85 billion. Caesars Entertainment had a negative return on equity of 7.88% and a negative net margin of 4.19%.Caesars Entertainment's quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.54) earnings per share. On average, equities research analysts forecast that Caesars Entertainment will post -0.49 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Edmund L. Quatmann, Jr. sold 81,566 shares of the company's stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $29.35, for a total transaction of $2,393,962.10. Following the transaction, the insider owned 18,263 shares of the company's stock, valued at approximately $536,019.05. This represents a 81.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Michael E. Pegram sold 55,000 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $29.20, for a total value of $1,606,000.00. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 251,766 shares of company stock worth $7,380,599. Insiders own 1.18% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Hantz Financial Services Inc. grew its stake in shares of Caesars Entertainment by 110.6% during the third quarter. Hantz Financial Services Inc. now owns 971 shares of the company's stock valued at $26,000 after buying an additional 510 shares during the last quarter. Sunbelt Securities Inc. grew its stake in shares of Caesars Entertainment by 181.6% during the third quarter. Sunbelt Securities Inc. now owns 1,042 shares of the company's stock valued at $28,000 after buying an additional 672 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its stake in shares of Caesars Entertainment by 456.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,119 shares of the company's stock valued at $26,000 after buying an additional 918 shares during the last quarter. CoreCap Advisors LLC grew its stake in shares of Caesars Entertainment by 44.6% during the fourth quarter. CoreCap Advisors LLC now owns 1,581 shares of the company's stock valued at $37,000 after buying an additional 488 shares during the last quarter. Finally, Stance Capital LLC bought a new position in shares of Caesars Entertainment during the third quarter valued at approximately $43,000. Institutional investors own 91.79% of the company's stock.

Key Headlines Impacting Caesars Entertainment

Here are the key news stories impacting Caesars Entertainment this week:

• Positive Sentiment: Caesars remains a takeover story after news that Fertitta Entertainment is proposing to buy Caesars Entertainment (CZR) for $31.00 per share in cash, which can support the stock by putting a potential floor under valuation. CZR Alert: Monsey Firm of Wohl & Fruchter Investigating Fairness of the Sale of Caesars Entertainment, Inc. to Fertitta Entertainment
• Neutral Sentiment: Director Michael Pegram’s earlier share purchase shows some insider confidence, but it is not enough to offset the broader negative signals. Insider Buying: Caesars Entertainment NASDAQ: CZR Director Buys 2,500 Shares of Stock
• Negative Sentiment: Caesars is facing a shareholder-rights investigation from Schall Law Firm over possible breaches of fiduciary duty, adding legal overhang and uncertainty around the deal process. CZR Investors Have the Opportunity to Join Investigation of Caesars Entertainment, Inc. with the Schall Law Firm
• Negative Sentiment: Recent large insider sales by executives and directors, including Edmund Quatmann, Jr. and Michael Pegram, may weigh on sentiment because they can signal reduced confidence at current levels. Caesars Entertainment NASDAQ: CZR Insider Edmund Quatmann, Jr. Sells 81,566 Shares
• Negative Sentiment: A separate investor notice about potential securities-law issues adds to the litigation risk surrounding CZR, which could keep investors cautious. Are CZR, RMAX, TBRG, SILA Obtaining Fair Deals for their Shareholders?

Caesars Entertainment Company Profile

Caesars Entertainment Corporation is a leading integrated gaming and hospitality company headquartered in Las Vegas, Nevada. The company owns and operates a global portfolio of resorts, casinos, and entertainment venues designed to deliver comprehensive hospitality experiences. Its business activities span hotel accommodations, gaming operations, food and beverage services, live events, and convention services, with a focus on delivering luxury and entertainment to both leisure and business travelers.

The company traces its lineage to the founding of Harrah's by William F.

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