Caesars Entertainment (NASDAQ:CZR) Sees Unusually-High Trading Volume - Here's What Happened

Key Points

• Caesars Entertainment saw unusually heavy trading, with 39.3 million shares changing hands, up 611% from the prior session, as the stock moved to around $29.20.
• The surge was driven by reports that Fertitta Entertainment will acquire Caesars in a $17.6 billion deal, including about $11.9 billion of debt, with shareholders set to receive $31.00 in cash per share.
• The acquisition price is above recent trading levels, and the stock was temporarily halted as news of the transaction circulated, while analysts currently have a Hold consensus and an average target price of $33.27.

Shares of Caesars Entertainment, Inc. (NASDAQ:CZR - Get Free Report) saw strong trading volume on Thursday . 39,274,687 shares changed hands during trading, an increase of 611% from the previous session's volume of 5,522,960 shares.The stock last traded at $29.1950 and had previously closed at $28.78.

Caesars Entertainment News Roundup

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

• Positive Sentiment: Fertitta Entertainment will buy Caesars Entertainment for about $17.6 billion, including the assumption of roughly $11.9 billion in debt, with Caesars shareholders set to receive $31.00 in cash per share. PR Newswire announcement
• Positive Sentiment: The deal value is above where the stock has recently traded, suggesting investors are pricing in a takeover premium and reduced uncertainty for the casino operator. Wall Street Journal article
• Neutral Sentiment: Trading in CZR was temporarily halted on news pending, which often happens when a major corporate event is announced. Reuters report
• Neutral Sentiment: The acquisition would combine Caesars with Fertitta’s broader gaming, hospitality, and leisure businesses, but the key near-term stock driver is the cash buyout terms rather than operating results. Yahoo Finance article

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on CZR. Susquehanna increased their price target on shares of Caesars Entertainment from $32.00 to $34.00 and gave the company a "positive" rating in a report on Wednesday, April 29th. JPMorgan Chase & Co. cut their price objective on shares of Caesars Entertainment from $36.00 to $35.00 and set an "overweight" rating for the company in a research report on Thursday, April 16th. Barclays cut their price objective on shares of Caesars Entertainment from $39.00 to $35.00 and set an "overweight" rating for the company in a research report on Wednesday, February 18th. Jefferies Financial Group upped their price objective on shares of Caesars Entertainment from $24.00 to $26.00 and gave the company a "hold" rating in a research report on Monday, April 6th. Finally, Citizens Jmp upped their price objective on shares of Caesars Entertainment from $34.00 to $35.00 and gave the company a "market outperform" rating in a research report on Wednesday, April 29th. Nine analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $33.27.

Caesars Entertainment Price Performance

The stock has a market cap of $5.93 billion, a P/E ratio of -12.28 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. The company's fifty day simple moving average is $27.25 and its 200-day simple moving average is $24.42.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The company reported ($0.48) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($0.24). The business had revenue of $2.87 billion during the quarter, compared to the consensus estimate of $2.85 billion. Caesars Entertainment had a negative net margin of 4.19% and a negative return on equity of 7.88%. The company's quarterly revenue was up 2.7% compared to the same quarter last year. During the same period last year, the firm earned ($0.54) EPS. As a group, sell-side analysts forecast that Caesars Entertainment, Inc. will post -0.36 EPS for the current year.

Institutional Investors Weigh In On Caesars Entertainment

Several institutional investors and hedge funds have recently bought and sold shares of the business. Edgestream Partners L.P. bought a new stake in Caesars Entertainment in the 1st quarter valued at $2,225,000. Janus Henderson Group PLC increased its holdings in Caesars Entertainment by 5.8% in the 1st quarter. Janus Henderson Group PLC now owns 6,529,700 shares of the company's stock valued at $172,582,000 after buying an additional 355,760 shares during the period. Amundi increased its holdings in Caesars Entertainment by 205.1% in the 1st quarter. Amundi now owns 1,587,634 shares of the company's stock valued at $41,961,000 after buying an additional 1,067,259 shares during the period. EverSource Wealth Advisors LLC increased its holdings in Caesars Entertainment by 59.5% in the 1st 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. Finally, California State Teachers Retirement System boosted its stake in shares of Caesars Entertainment by 22.8% in the 1st quarter. California State Teachers Retirement System now owns 228,660 shares of the company's stock valued at $6,043,000 after purchasing an additional 42,525 shares in the last quarter. Institutional investors own 91.79% of the company's stock.

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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