Bank of America Corp DE Takes $96.17 Million Position in Caesars Entertainment, Inc. $CZR

Key Points

• Bank of America acquired 3.19 million Caesars Entertainment shares worth approximately $96.2 million, representing about 1.56% of the company; institutional investors collectively own 91.79%.
• Caesars’ potential Fertitta Entertainment buyout continues to support its valuation, but the FTC’s additional information request could delay the transaction. The company’s latest quarter was mixed, with revenue up 3% year over year to $2.99 billion but an adjusted loss per share of $0.30 that missed expectations.
• Insiders sold 322,682 shares worth roughly $9.6 million over the past quarter, while analysts remain cautious: the stock has a consensus “Hold” rating and an average price target of $30.71.

Bank of America Corp DE bought a new stake in shares of Caesars Entertainment, Inc. (NASDAQ:CZR - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 3,186,528 shares of the company's stock, valued at approximately $96,169,000. Bank of America Corp DE owned about 1.56% of Caesars Entertainment at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Pictet Asset Management Holding SA raised its position in shares of Caesars Entertainment by 1.2% during the first quarter. Pictet Asset Management Holding SA now owns 31,307 shares of the company's stock worth $827,000 after purchasing an additional 363 shares during the period. EverSource Wealth Advisors LLC boosted its position in shares of 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 purchasing an additional 702 shares during the period. Allworth Financial LP purchased a new position in Caesars Entertainment in the 2nd quarter worth about $25,000. Hantz Financial Services Inc. raised 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 worth $42,000 after buying an additional 846 shares during the period. Finally, GAMMA Investing LLC lifted its stake in Caesars Entertainment by 11.2% during the second quarter. GAMMA Investing LLC now owns 8,417 shares of the company's stock valued at $254,000 after buying an additional 848 shares in the last quarter. Institutional investors and hedge funds own 91.79% of the company's stock.

Insider Buying and Selling at Caesars Entertainment

In other news, Director David Tomick sold 7,142 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $29.71, for a total value of $212,188.82. Following the transaction, the director owned 17,769 shares of the company's stock, valued at $527,916.99. This represents a 28.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CMO Josh Jones sold 59,507 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $29.72, for a total value of $1,768,548.04. The SEC filing for this sale provides additional information. Insiders sold a total of 322,682 shares of company stock worth $9,565,403 over the last quarter. Company insiders own 1.18% of the company's stock.

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

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the stock. Wells Fargo & Company lifted their price objective on shares of 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 lowered Caesars Entertainment from a "hold" rating to a "strong sell" rating in a research report on Monday, August 17th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Caesars Entertainment in a research note on Thursday, August 13th. Barclays restated an "equal weight" rating and set a $31.00 price target (down from $35.00) on shares of Caesars Entertainment in a report on Thursday, July 9th. Finally, Texas Capital downgraded shares of Caesars Entertainment from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 1st. Two analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $30.71.

Caesars Entertainment Price Performance

NASDAQ:CZR opened at $29.64 on Friday. Caesars Entertainment, Inc. has a 12 month low of $17.86 and a 12 month high of $30.88. The company's 50-day moving average price is $29.77 and its two-hundred day moving average price is $28.61. The company has a quick ratio of 0.83, a current ratio of 0.85 and a debt-to-equity ratio of 3.70. The firm has a market cap of $6.04 billion, a PE ratio of -13.00 and a beta of 1.75.

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

About Caesars Entertainment

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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