Light & Wonder (NASDAQ:LNW) Sets New 12-Month 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) hit a new 52-week low during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $69.56 and last traded at $78.22, with a volume of 950177 shares changing hands. The stock had previously closed at $90.92.

The company reported $1.58 earnings per share for the quarter, beating analysts' consensus estimates of $1.44 by $0.14. The company had revenue of $809.00 million for the quarter, compared to the consensus estimate of $851.29 million. Light & Wonder had a net margin of 10.89% and a return on equity of 71.17%. The firm's revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.90 earnings per share.

Analyst Ratings Changes

LNW has been the topic of a number of research analyst reports. Stifel Nicolaus increased their price objective on shares of Light & Wonder from $84.00 to $95.00 and gave the company a "hold" rating in a research report on Thursday, May 8th. Jefferies Financial Group set a $116.00 target price on shares of Light & Wonder in a report on Wednesday, June 25th. 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. Macquarie reduced their target price on shares of Light & Wonder from $122.00 to $117.00 and set an "outperform" rating for the company in a report on Thursday. Finally, Truist Financial upped their target price on shares of Light & Wonder from $110.00 to $130.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. 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 given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $108.10.

Institutional Trading of Light & Wonder

Hedge funds and other institutional investors have recently modified their holdings of the company. IFP Advisors Inc grew its stake in Light & Wonder by 198.9% during the second quarter. IFP Advisors Inc now owns 269 shares of the company's stock valued at $26,000 after acquiring an additional 179 shares in the last quarter. Versant Capital Management Inc grew its stake in Light & Wonder by 4,783.3% during the first quarter. Versant Capital Management Inc now owns 293 shares of the company's stock valued at $25,000 after acquiring an additional 287 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in Light & Wonder by 118.5% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 437 shares of the company's stock valued at $42,000 after acquiring an additional 237 shares in the last quarter. AlphaQuest LLC grew its stake in Light & Wonder by 41.8% during the second quarter. AlphaQuest LLC now owns 604 shares of the company's stock valued at $58,000 after acquiring an additional 178 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its stake in Light & Wonder by 3,861.1% during the first quarter. Farther Finance Advisors LLC now owns 713 shares of the company's stock valued at $63,000 after acquiring an additional 695 shares in the last quarter. 88.08% of the stock is owned by hedge funds and other institutional investors.

Light & Wonder Stock Up 1.3%

The company has a quick ratio of 1.35, a current ratio of 1.77 and a debt-to-equity ratio of 6.86. The company's 50 day moving average is $92.60 and its two-hundred day moving average is $92.01. The company has a market capitalization of $6.62 billion, a PE ratio of 19.91, a PEG ratio of 0.47 and a beta of 1.21.

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.