Caesars Entertainment (NASDAQ:CZR) Downgraded to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Caesars Entertainment from “hold” to “strong sell,” while the broader analyst consensus remains “hold” with an average price target of $30.71.
• Caesars opened at $29.63, near its 52-week high of $30.88, but reported a quarterly EPS loss of $0.30 versus expectations for a $0.05 profit. Revenue of $2.99 billion slightly exceeded estimates.
• Insiders sold 352,970 shares worth approximately $10.4 million over the past 90 days, while institutional investors own 91.79% of the company’s stock.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other analysts have also weighed in on CZR. TD Cowen lowered Caesars Entertainment from a "buy" rating to a "hold" rating and set a $31.00 target price for the company. in a research note on Wednesday, July 29th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Caesars Entertainment in a research report on Thursday, August 13th. Susquehanna raised shares of Caesars Entertainment from a "positive" rating to a "positive" rating in a report on Friday, May 29th. Texas Capital cut shares of Caesars Entertainment from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 1st. Finally, Wells Fargo & Company boosted their target price on shares of Caesars Entertainment from $26.00 to $31.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Caesars Entertainment currently has a consensus rating of "Hold" and an average price target of $30.71.

Caesars Entertainment Stock Down 0.1%

NASDAQ CZR opened at $29.63 on Monday. The stock's 50 day simple moving average is $29.83 and its 200 day simple moving average is $27.23. Caesars Entertainment has a one year low of $17.86 and a one year high of $30.88. The firm has a market cap of $6.04 billion, a PE ratio of -13.00 and a beta of 1.77. The company has a debt-to-equity ratio of 3.70, a current ratio of 0.85 and a quick ratio of 0.83.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The company reported ($0.30) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.35). The business had revenue of $2.99 billion during the quarter, compared to the consensus estimate of $2.98 billion. Caesars Entertainment had a negative net margin of 3.99% and a negative return on equity of 7.64%. The company's revenue for the quarter was up 3.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.39) EPS. As a group, sell-side analysts forecast that Caesars Entertainment will post -0.9 earnings per share for the current fiscal year.

Insider Activity

In related news, 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 sale, the insider directly owned 18,263 shares in the company, valued at $536,019.05. This trade represents a 81.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CMO Josh Jones sold 59,507 shares of the business's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $29.72, for a total value of $1,768,548.04. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 352,970 shares of company stock valued at $10,377,789 over the last 90 days. 1.18% of the stock is owned by company insiders.

Institutional Investors Weigh In On Caesars Entertainment

A number of institutional investors and hedge funds have recently modified their holdings of the business. Allworth Financial LP bought a new position in Caesars Entertainment in the second quarter valued at approximately $25,000. Caitong International Asset Management Co. Ltd boosted its position in shares of Caesars Entertainment by 456.7% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,119 shares of the company's stock worth $26,000 after purchasing an additional 918 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 worth $28,000 after purchasing an additional 672 shares during the period. Hantz Financial Services Inc. increased its holdings in Caesars Entertainment by 87.1% in the fourth 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 last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in Caesars Entertainment by 59.5% in the first quarter. EverSource Wealth Advisors LLC now owns 1,882 shares of the company's stock valued at $50,000 after buying an additional 702 shares during the period. 91.79% of the stock is owned by institutional investors.

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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