Caesars Entertainment (NASDAQ:CZR) Downgraded to "Hold" Rating by Stifel Nicolaus

Key Points

• Stifel Nicolaus downgraded Caesars Entertainment from “buy” to “hold” and kept a $31 price target, implying about 5% upside from the prior close.
• The broader analyst view is cautious: Caesars now has a consensus “Hold” rating with a $32.53 average target price, after several recent firms adjusted their ratings and price objectives.
• Caesars’ latest quarter showed mixed results, with EPS missing estimates even as revenue came in slightly above expectations; the company also reported recent insider share sales and relatively high leverage.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) was downgraded by stock analysts at Stifel Nicolaus from a "buy" rating to a "hold" rating in a research note issued on Monday, MarketBeat Ratings reports. They currently have a $31.00 target price on the stock. Stifel Nicolaus' price objective would suggest a potential upside of 5.12% from the company's previous close.

Other equities research analysts also recently issued research reports about the company. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $31.00 price objective (down from $35.00) on shares of Caesars Entertainment in a research report on Friday, May 29th. Wells Fargo & Company increased their price objective on Caesars Entertainment from $26.00 to $31.00 and gave the stock an "equal weight" rating in a research report on Tuesday, June 2nd. Zacks Research upgraded Caesars Entertainment from a "strong sell" rating to a "hold" rating in a research report on Friday, March 6th. Citizens Jmp increased their price objective on Caesars Entertainment from $34.00 to $35.00 and gave the stock a "market outperform" rating in a research report on Wednesday, April 29th. Finally, Barclays lowered their price objective on Caesars Entertainment from $39.00 to $35.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 18th. Four analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $32.53.

Caesars Entertainment Price Performance

Shares of NASDAQ CZR opened at $29.49 on Monday. The stock has a fifty day simple moving average of $27.88 and a two-hundred day simple moving average of $25.19. Caesars Entertainment has a 1-year low of $17.86 and a 1-year high of $31.58. The firm has a market cap of $6.01 billion, a price-to-earnings ratio of -12.44 and a beta of 1.77. The company has a current ratio of 0.85, a quick ratio of 0.83 and a debt-to-equity ratio of 3.25.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last posted its quarterly 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). Caesars Entertainment had a negative return on equity of 7.88% and a negative net margin of 4.19%.The company had revenue of $2.87 billion during the quarter, compared to the consensus estimate of $2.85 billion. During the same period in the previous year, the business earned ($0.54) earnings per share. Caesars Entertainment's revenue was up 2.7% on a year-over-year basis. Analysts anticipate that Caesars Entertainment will post -0.49 earnings per share for the current year.

Insider Activity

In other news, Director Michael E. Pegram sold 55,000 shares of Caesars Entertainment stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $29.20, for a total value of $1,606,000.00. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Edmund L. Quatmann, Jr. sold 81,566 shares of Caesars Entertainment stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $29.35, for a total value of $2,393,962.10. Following the completion of the transaction, the insider owned 18,263 shares in the company, valued at approximately $536,019.05. This represents a 81.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 293,463 shares of company stock worth $8,609,241. Company insiders own 1.18% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of CZR. Caitong International Asset Management Co. Ltd increased its holdings in shares of Caesars Entertainment by 456.7% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,119 shares of the company's stock worth $26,000 after buying an additional 918 shares during the period. Sunbelt Securities Inc. increased its holdings in Caesars Entertainment by 181.6% during the 3rd quarter. Sunbelt Securities Inc. now owns 1,042 shares of the company's stock valued at $28,000 after purchasing an additional 672 shares during the period. CoreCap Advisors LLC increased its holdings in Caesars Entertainment by 44.6% during the 4th quarter. CoreCap Advisors LLC now owns 1,581 shares of the company's stock valued at $37,000 after purchasing an additional 488 shares during the period. Hantz Financial Services Inc. increased its holdings in Caesars Entertainment by 87.1% during the 4th quarter. Hantz Financial Services Inc. now owns 1,817 shares of the company's stock valued at $42,000 after purchasing an additional 846 shares during the period. Finally, Stance Capital LLC purchased a new position in Caesars Entertainment during the 3rd quarter valued at about $43,000. Hedge funds and other institutional investors own 91.79% of the company's stock.

About Caesars Entertainment

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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