Caesars Entertainment, Inc. $CZR Shares Sold by Capital Research Global Investors

Key Points

• Capital Research Global Investors trimmed its stake in Caesars by 23.3% in Q3, selling 4,663,392 shares and ending the quarter with 15,317,941 shares — about 7.50% of the company valued at $413.98 million.
• Caesars reported a steep EPS miss for the quarter (loss of $1.23 vs. estimate of -$0.18) despite revenue of $2.92 billion (up 4.2% YoY), and the company shows high leverage with a debt-to-equity ratio of 3.17 and negative net margin/ROE.
• Institutional ownership stands at roughly 91.8%, and analysts maintain an average rating of "Moderate Buy" with a consensus price target of $33.24, although several firms recently cut targets (e.g., JPMorgan, Stifel, Truist).

Capital Research Global Investors trimmed its stake in Caesars Entertainment, Inc. (NASDAQ:CZR - Free Report) by 23.3% in the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 15,317,941 shares of the company's stock after selling 4,663,392 shares during the quarter. Capital Research Global Investors owned about 7.50% of Caesars Entertainment worth $413,977,000 as of its most recent filing with the SEC.

Other institutional investors have also recently added to or reduced their stakes in the company. ING Groep NV grew its position in Caesars Entertainment by 80.2% during the third quarter. ING Groep NV now owns 599,854 shares of the company's stock valued at $16,211,000 after purchasing an additional 266,917 shares in the last quarter. Principal Financial Group Inc. boosted its stake in shares of Caesars Entertainment by 56.4% during the 3rd quarter. Principal Financial Group Inc. now owns 1,700,389 shares of the company's stock worth $45,953,000 after acquiring an additional 612,837 shares in the last quarter. LDR Capital Management LLC acquired a new position in shares of Caesars Entertainment during the 3rd quarter valued at about $1,172,000. Villere ST Denis J & Co. LLC raised its stake in shares of Caesars Entertainment by 31.6% in the 3rd quarter. Villere ST Denis J & Co. LLC now owns 1,038,870 shares of the company's stock valued at $28,075,000 after acquiring an additional 249,603 shares in the last quarter. Finally, Blackhawk Capital Partners LLC acquired a new stake in Caesars Entertainment in the 3rd quarter worth approximately $1,412,000. 91.79% of the stock is owned by hedge funds and other institutional investors.

Caesars Entertainment Price Performance

Caesars Entertainment stock opened at $26.01 on Wednesday. Caesars Entertainment, Inc. has a one year low of $17.86 and a one year high of $31.58. The company has a debt-to-equity ratio of 3.17, a current ratio of 0.80 and a quick ratio of 0.78. The business has a 50 day simple moving average of $22.69 and a 200 day simple moving average of $23.27. The company has a market capitalization of $5.29 billion, a PE ratio of -10.70, a price-to-earnings-growth ratio of 61.75 and a beta of 1.94.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last released its quarterly earnings results on Tuesday, February 17th. The company reported ($1.23) earnings per share for the quarter, missing analysts' consensus estimates of ($0.18) by ($1.05). Caesars Entertainment had a negative net margin of 4.37% and a negative return on equity of 7.97%. The business had revenue of $2.92 billion for the quarter, compared to analyst estimates of $2.89 billion. During the same period in the prior year, the business earned $0.05 earnings per share. The company's revenue for the quarter was up 4.2% on a year-over-year basis. On average, sell-side analysts forecast that Caesars Entertainment, Inc. will post -0.77 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Weiss Ratings restated a "sell (e+)" rating on shares of Caesars Entertainment in a research note on Wednesday, January 21st. JPMorgan Chase & Co. dropped their target price on shares of Caesars Entertainment from $37.00 to $36.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. Stifel Nicolaus decreased their price target on shares of Caesars Entertainment from $39.00 to $36.00 and set a "buy" rating for the company in a report on Wednesday, February 18th. Citigroup reaffirmed a "market outperform" rating on shares of Caesars Entertainment in a research report on Tuesday. Finally, Truist Financial cut their price objective on Caesars Entertainment from $30.00 to $29.00 and set a "buy" rating for the company in a research report on Wednesday, February 18th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Caesars Entertainment presently has an average rating of "Moderate Buy" and a consensus price target of $33.24.

Caesars Entertainment 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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