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

Key Points

• Caesars Entertainment has a consensus “Hold” rating from 19 brokerages: 15 holds, two sells and two buys. The average 12-month price target is $30.71, modestly above the reported share price of $29.64.
• Caesars reported quarterly revenue of approximately $2.99 billion, up 3% year over year and slightly ahead of estimates, but its adjusted loss of $0.30 per share significantly missed the expected $0.05 profit.
• The stock continues to receive support from potential takeover activity, while regulatory review of the Fertitta transaction, shareholder-investigation notices and recent insider selling add uncertainty and may limit investor sentiment.

Caesars Entertainment, Inc. (NASDAQ:CZR - Get Free Report) has been assigned an average recommendation of "Hold" from the nineteen brokerages that are presently covering the company, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, fifteen have assigned a hold recommendation and two have given a buy recommendation to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $30.7143.

Several equities research analysts have recently commented on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Caesars Entertainment in a report on Thursday, August 13th. Raymond James Financial downgraded shares of Caesars Entertainment from a "strong-buy" rating to a "market perform" rating in a research note on Friday, May 29th. Capital One Financial lowered Caesars Entertainment from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 23rd. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $31.00 target price (down from $35.00) on shares of Caesars Entertainment in a research report on Friday, May 29th. Finally, Susquehanna raised Caesars Entertainment from a "positive" rating to a "positive" rating in a research report on Friday, May 29th.

Caesars Entertainment Price Performance

Caesars Entertainment stock opened at $29.64 on Friday. The stock has a market cap of $6.04 billion, a price-to-earnings ratio of -13.00 and a beta of 1.75. 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 has a 1 year low of $17.86 and a 1 year high of $30.88. The firm has a 50-day moving average of $29.77 and a two-hundred day moving average of $28.61.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last issued its earnings results on Tuesday, July 28th. The company reported ($0.30) EPS for the quarter, missing analysts' consensus estimates of $0.05 by ($0.35). Caesars Entertainment had a negative return on equity of 7.64% and a negative net margin of 3.99%.The company had revenue of $2.99 billion for the quarter, compared to analysts' expectations of $2.98 billion. During the same period last year, the business posted ($0.39) earnings per share. The business's revenue was up 3.0% compared to the same quarter last year. On average, research analysts forecast that Caesars Entertainment will post -0.9 earnings per share for the current year.

Caesars Entertainment News Roundup

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

• Positive Sentiment: The Fertitta Entertainment buyout provides a potential valuation floor and remains a source of takeover-related support for Caesars Entertainment (CZR). FTC Requests Additional Information Regarding Fertitta, Caesars Merger
• Neutral Sentiment: The Federal Trade Commission issued a “second request” for additional information about the Fertitta transaction. This extends the regulatory review and could delay closing, but it does not mean the deal has been rejected. Caesars Entertainment Says FTC Issued Second Request Related to Acquisition by Fertitta Entertainment
• Neutral Sentiment: Caesars’ second-quarter results showed revenue of approximately $2.99 billion, slightly above expectations and up 3% year over year, but the company recorded a larger-than-expected loss per share. The mixed operating performance limits fundamental upside while the acquisition remains unresolved. Q2 Earnings Highs And Lows: Caesars Entertainment
• Negative Sentiment: Shareholder-investigation notices from Brodsky & Smith add headline and litigation risk, although the announcement contains no specific finding of wrongdoing. Brodsky & Smith Shareholder Update
• Negative Sentiment: Director David Tomick sold a combined 14,142 shares for roughly $420,000, reducing his holdings materially. Insider selling is not necessarily a signal of deteriorating fundamentals, but it can weigh on sentiment near the stock’s recent highs. David Tomick Sells Shares of Caesars Entertainment Stock

Insider Buying and Selling

In other news, Director Blackhurst Janis L. Jones sold 33,899 shares of the firm's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $29.63, for a total value of $1,004,427.37. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director David P. Tomick sold 7,142 shares of Caesars Entertainment stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $29.71, for a total transaction of $212,188.82. Following the completion of the transaction, the director directly owned 17,769 shares in the company, valued at approximately $527,916.99. The trade was a 28.67% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 322,682 shares of company stock worth $9,565,403 over the last ninety days. 1.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Caesars Entertainment

Institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new position in shares of Caesars Entertainment during the second quarter worth $830,001,000. Pentwater Capital Management LP acquired a new stake in shares of Caesars Entertainment in the 2nd quarter worth $346,014,000. Janus Henderson Group PLC boosted its position in shares of Caesars Entertainment by 5.8% in the 1st quarter. Janus Henderson Group PLC now owns 6,529,700 shares of the company's stock worth $172,582,000 after purchasing an additional 355,760 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund raised its stake in Caesars Entertainment by 246,899,900.0% in the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 4,938,000 shares of the company's stock valued at $115,500,000 after buying an additional 4,937,998 shares during the last quarter. Finally, Assenagon Asset Management S.A. raised its stake in Caesars Entertainment by 33.2% in the first quarter. Assenagon Asset Management S.A. now owns 4,359,946 shares of the company's stock valued at $115,233,000 after buying an additional 1,085,516 shares during the last quarter. 91.79% of the stock is currently owned by institutional investors and hedge funds.

Caesars Entertainment Company Profile

Caesars Entertainment, Inc is a casino-entertainment company that owns, operates and manages commercial casinos, resorts and gaming facilities primarily in the United States. Its properties offer casino gaming, hotel accommodations, restaurants, entertainment, nightlife, conventions and other leisure services, with a significant presence in Las Vegas and regional markets across the country.

The company operates a portfolio of well-known brands, including Caesars, Harrah's, Horseshoe, Paris, Planet Hollywood, Flamingo, The LINQ and Caesars Sportsbook.

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