Light & Wonder (NASDAQ:LNW) Hits New 52-Week Low on Disappointing Earnings

Key Points

• Light & Wonder's stock reached a new 52-week low of $69.56 following the release of disappointing quarterly earnings, which underperformed analyst expectations.
• The company reported $1.11 earnings per share for the quarter, missing the consensus estimate of $1.44, and experienced a year-over-year revenue decline of 1.1% to $809 million.
• Despite the setbacks, multiple analysts have set target prices for the stock, with an average rating of "Moderate Buy" and a consensus target price of $107.00.

Light & Wonder, Inc. (NASDAQ:LNW - Get Free Report) shares reached a new 52-week low during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $69.56 and last traded at $78.22, with a volume of 950177 shares. The stock had previously closed at $90.92.

The company reported $1.58 EPS for the quarter, topping analysts' consensus estimates of $1.44 by $0.14. The business had revenue of $809.00 million for the quarter, compared to analyst estimates of $851.29 million. Light & Wonder had a return on equity of 71.17% and a net margin of 10.89%. Light & Wonder's quarterly revenue was down 1.1% compared to the same quarter last year. During the same period last year, the company posted $0.90 earnings per share.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on LNW shares. Stifel Nicolaus boosted their target price on Light & Wonder from $84.00 to $95.00 and gave the company a "hold" rating in a research note on Thursday, May 8th. Truist Financial lifted their price target on Light & Wonder from $110.00 to $130.00 and gave the company a "buy" rating in a research report on Wednesday, July 16th. Benchmark reduced their price target on Light & Wonder from $100.00 to $90.00 and set a "buy" rating for the company in a research report on Friday. Wall Street Zen cut Light & Wonder from a "buy" rating to a "hold" rating in a research report on Sunday, July 13th. Finally, Macquarie reduced their price target on Light & Wonder from $122.00 to $117.00 and set an "outperform" rating for the company in a research report on Thursday. One analyst has rated the stock with a sell rating, four have given a hold rating, seven have issued a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $108.10.

Insider Activity

In related news, Director Jamie Odell bought 8,275 shares of the stock in a transaction dated Thursday, August 7th. The stock was bought at an average price of $78.81 per share, with a total value of $652,152.75. Following the purchase, the director owned 8,275 shares in the company, valued at approximately $652,152.75. The trade was a ∞ increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 2.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Versant Capital Management Inc grew its holdings in shares of Light & Wonder by 4,783.3% during the 1st quarter. Versant Capital Management Inc now owns 293 shares of the company's stock worth $25,000 after acquiring an additional 287 shares during the period. IFP Advisors Inc grew its holdings in shares of Light & Wonder by 198.9% during the 2nd quarter. IFP Advisors Inc now owns 269 shares of the company's stock worth $26,000 after acquiring an additional 179 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in shares of Light & Wonder by 118.5% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 437 shares of the company's stock worth $42,000 after acquiring an additional 237 shares during the period. AlphaQuest LLC grew its holdings in shares of Light & Wonder by 41.8% during the 2nd quarter. AlphaQuest LLC now owns 604 shares of the company's stock worth $58,000 after acquiring an additional 178 shares during the period. Finally, Farther Finance Advisors LLC grew its stake in shares of Light & Wonder by 3,861.1% in the 1st quarter. Farther Finance Advisors LLC now owns 713 shares of the company's stock worth $63,000 after buying an additional 695 shares during the last quarter. Institutional investors own 88.08% of the company's stock.

Light & Wonder Trading Up 4.8%

The company has a debt-to-equity ratio of 6.86, a quick ratio of 1.51 and a current ratio of 1.77. The company has a market cap of $6.94 billion, a P/E ratio of 20.78, a price-to-earnings-growth ratio of 0.49 and a beta of 1.21. The stock has a 50-day moving average of $92.60 and a two-hundred day moving average of $92.03.

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.