Caesars Entertainment Target of Unusually Large Options Trading (NASDAQ:CZR)

Key Points

• Unusually heavy options activity hit Caesars Entertainment, with 52,115 call options traded on Friday — about 316% above the usual volume. That suggests traders were positioning for a move higher in the stock.
• Recent news has been mixed: Barclays reiterated an “equal weight” rating with a $31 target, while reports that Carl Icahn’s competing bid is unlikely to beat the Fertitta deal have dampened takeover speculation.
• Operationally, Caesars reported better-than-expected revenue but a wider loss in its latest quarter, and insiders have also been selling shares. The stock was trading near $29.77, close to its 52-week high of $31.58.

Caesars Entertainment, Inc. (NASDAQ:CZR - Get Free Report) was the target of unusually large options trading activity on Friday. Stock investors purchased 52,115 call options on the stock. This is an increase of 316% compared to the typical volume of 12,524 call options.

Caesars Entertainment News Summary

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

• Positive Sentiment: Barclays reaffirmed its “equal weight” rating on Caesars Entertainment and set a $31 price target, which is above the recent trading level and suggests modest upside. Benzinga
• Positive Sentiment: Caesars Republic Lake Tahoe Hotel & Casino officially opened, adding a fresh operating milestone that could support sentiment around the company’s casino portfolio. Gaming Intelligence
• Neutral Sentiment: Caesars said board member Courtney Mather resigned, which appears to be a routine governance change rather than a major business event. Yogonet
• Neutral Sentiment: Analyst coverage from 24/7 Wall St. highlighted Caesars among several names in Thursday’s research roundup, but did not introduce a major new thesis on its own. 24/7 Wall St.
• Negative Sentiment: Reports that Carl Icahn’s competing bid is unlikely to top the Fertitta deal have cooled takeover speculation, which may be weighing on the stock. MSN

Wall Street Analysts Forecast Growth

CZR has been the topic of several recent analyst reports. Raymond James Financial downgraded Caesars Entertainment from a "strong-buy" rating to a "market perform" rating in a research note on Friday, May 29th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Caesars Entertainment in a report on Monday, May 18th. Wall Street Zen raised Caesars Entertainment from a "sell" rating to a "hold" rating in a research report on Saturday, April 4th. Jefferies Financial Group lifted their price objective on Caesars Entertainment from $24.00 to $26.00 and gave the stock a "hold" rating in a report on Monday, April 6th. Finally, Citizens Jmp upped their target price on shares of Caesars Entertainment from $34.00 to $35.00 and gave the company a "market outperform" rating in a research note on Wednesday, April 29th. Three equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Caesars Entertainment presently has an average rating of "Hold" and a consensus target price of $32.27.

Caesars Entertainment Trading Down 0.2%

Shares of NASDAQ:CZR opened at $29.77 on Friday. The stock has a market capitalization of $6.06 billion, a price-to-earnings ratio of -12.56 and a beta of 1.76. The company has a debt-to-equity ratio of 3.25, a quick ratio of 0.83 and a current ratio of 0.85. The stock's 50-day simple moving average is $28.89 and its two-hundred day simple moving average is $26.04. Caesars Entertainment has a 52-week low of $17.86 and a 52-week high of $31.58.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The company reported ($0.48) EPS for the quarter, missing the consensus estimate of ($0.24) by ($0.24). Caesars Entertainment had a negative net margin of 4.19% and a negative return on equity of 7.88%. The business had revenue of $2.87 billion for the quarter, compared to analysts' expectations of $2.85 billion. During the same period in the previous year, the company earned ($0.54) EPS. Caesars Entertainment's revenue for the quarter was up 2.7% compared to the same quarter last year. Analysts expect that Caesars Entertainment will post -0.49 EPS for the current year.

Insider Activity

In other news, 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 sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Edmund L. Quatmann, Jr. sold 81,566 shares of the stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $29.35, for a total transaction of $2,393,962.10. Following the sale, the insider owned 18,263 shares in the company, valued at approximately $536,019.05. The trade was a 81.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 293,463 shares of company stock valued at $8,609,241 over the last ninety days. Corporate insiders own 1.18% of the company's stock.

Institutional Trading of Caesars Entertainment

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Healthcare of Ontario Pension Plan Trust Fund boosted its stake in shares of Caesars Entertainment by 246,899,900.0% during the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 4,938,000 shares of the company's stock worth $115,500,000 after acquiring an additional 4,937,998 shares during the last quarter. Morgan Stanley raised its holdings in Caesars Entertainment by 121.0% in the 4th quarter. Morgan Stanley now owns 7,141,899 shares of the company's stock worth $167,049,000 after purchasing an additional 3,910,430 shares during the period. Norges Bank bought a new position in Caesars Entertainment in the 4th quarter worth $76,050,000. MUFG Securities EMEA plc purchased a new position in Caesars Entertainment during the fourth quarter valued at $65,492,000. Finally, Assenagon Asset Management S.A. lifted its position in Caesars Entertainment by 317.9% during the fourth quarter. Assenagon Asset Management S.A. now owns 3,274,430 shares of the company's stock valued at $76,589,000 after purchasing an additional 2,490,924 shares in the last quarter. 91.79% of the stock is owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.