Light & Wonder, Inc. (NASDAQ:LNW) Sees Large Increase in Short Interest

Key Points

• Light & Wonder, Inc. reported a significant increase of 27.0% in short interest for August, with total short interest reaching 5,880,000 shares.
• The company's stock price fell by 0.6% to $88.15, and shares have seen a one-year high of $115.00 and a low of $69.56.
• Insiders have shown confidence in the company, with Director Jamie Odell purchasing 8,275 shares at around $78.81, increasing his position significantly.

Light & Wonder, Inc. (NASDAQ:LNW - Get Free Report) was the target of a significant growth in short interest in the month of August. As of August 31st, there was short interest totaling 5,880,000 shares, a growth of 27.0% from the August 15th total of 4,630,000 shares. Based on an average daily trading volume, of 1,030,000 shares, the short-interest ratio is presently 5.7 days. Currently, 7.1% of the shares of the company are sold short. Currently, 7.1% of the shares of the company are sold short. Based on an average daily trading volume, of 1,030,000 shares, the short-interest ratio is presently 5.7 days.

Analyst Upgrades and Downgrades

Several research firms have recently commented on LNW. Wall Street Zen downgraded shares of Light & Wonder from a "buy" rating to a "hold" rating in a research note on Sunday, July 13th. Jefferies Financial Group set a $116.00 target price on shares of Light & Wonder in a report on Wednesday, June 25th. Truist Financial raised their target price on shares of Light & Wonder from $110.00 to $130.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. Benchmark reduced their target price on shares of Light & Wonder from $100.00 to $90.00 and set a "buy" rating for the company in a report on Friday, August 8th. Finally, JPMorgan Chase & Co. cut shares of Light & Wonder from an "overweight" rating to a "neutral" rating and reduced their target price for the stock from $108.00 to $95.00 in a report on Thursday, August 7th. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Light & Wonder currently has an average rating of "Moderate Buy" and a consensus price target of $104.11.

Insider Activity at Light & Wonder

In related news, Director Antonia Korsanos acquired 8,065 shares of the stock in a transaction dated Sunday, August 10th. The stock was acquired at an average cost of $80.05 per share, for a total transaction of $645,603.25. Following the completion of the purchase, the director owned 22,815 shares of the company's stock, valued at approximately $1,826,340.75. This represents a 54.68% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Timothy Throsby acquired 20,000 shares of the stock in a transaction dated Thursday, August 14th. The shares were bought at an average price of $89.37 per share, with a total value of $1,787,400.00. Following the completion of the purchase, the director directly owned 42,082 shares of the company's stock, valued at approximately $3,760,868.34. This trade represents a 90.57% increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders have acquired 37,756 shares of company stock valued at $3,209,088. 2.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. IFP Advisors Inc increased its holdings in Light & Wonder by 198.9% in the second quarter. IFP Advisors Inc now owns 269 shares of the company's stock valued at $26,000 after buying an additional 179 shares in the last quarter. Versant Capital Management Inc increased its holdings in Light & Wonder by 4,783.3% in the first quarter. Versant Capital Management Inc now owns 293 shares of the company's stock valued at $25,000 after buying an additional 287 shares in the last quarter. Employees Retirement System of Texas purchased a new position in Light & Wonder in the second quarter valued at $29,000. Headlands Technologies LLC purchased a new position in Light & Wonder in the second quarter valued at $38,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in Light & Wonder by 118.5% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 437 shares of the company's stock valued at $42,000 after buying an additional 237 shares in the last quarter. Hedge funds and other institutional investors own 88.08% of the company's stock.

Light & Wonder Stock Performance

LNW traded down $0.94 on Friday, reaching $87.28. The stock had a trading volume of 1,190,095 shares, compared to its average volume of 1,072,637. Light & Wonder has a 12-month low of $69.56 and a 12-month high of $113.95. The company has a current ratio of 1.77, a quick ratio of 1.51 and a debt-to-equity ratio of 6.86. The business's 50-day moving average price is $91.53 and its two-hundred day moving average price is $90.39. The company has a market cap of $7.33 billion, a P/E ratio of 22.04, a price-to-earnings-growth ratio of 0.53 and a beta of 1.18.

Light & Wonder (NASDAQ:LNW - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $1.58 earnings per share for the quarter, beating analysts' consensus estimates of $1.44 by $0.14. Light & Wonder had a net margin of 10.89% and a return on equity of 71.17%. The company had revenue of $809.00 million during the quarter, compared to analysts' expectations of $851.29 million. During the same quarter in the previous year, the company earned $0.90 earnings per share. The firm's revenue for the quarter was down 1.1% on a year-over-year basis. Sell-side analysts forecast that Light & Wonder will post 4.3 earnings per share for the current year.

Light & Wonder Company Profile

Light & Wonder, Inc is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services.