Light & Wonder (NASDAQ:LNW) Trading 4.3% Higher - Here's What Happened

Key Points

• Light & Wonder, Inc. shares rose 4.3%, with the stock trading between $88.20 and $92.31, despite a 48% decline in trading volume compared to its average.
• Analyst ratings on the stock are mixed, with two Strong Buy, seven Buy, three Hold, and one Sell rating, and an average price target of $108.10.
• Insider activity increased, with Director Timothy Throsby acquiring 20,000 shares valued at approximately $1.79 million, reflecting growing confidence in the company's performance.

Light & Wonder, Inc. (NASDAQ:LNW - Get Free Report)'s share price was up 4.3% during mid-day trading on Tuesday . The stock traded as high as $92.31 and last traded at $92.03. Approximately 499,899 shares changed hands during trading, a decline of 48% from the average daily volume of 952,797 shares. The stock had previously closed at $88.20.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on LNW shares. Jefferies Financial Group set a $116.00 price objective on Light & Wonder in a research report on Wednesday, June 25th. Macquarie cut their price objective on Light & Wonder from $122.00 to $117.00 and set an "outperform" rating for the company in a research report on Thursday, August 7th. JPMorgan Chase & Co. downgraded Light & Wonder from an "overweight" rating to a "neutral" rating and cut their price objective for the stock from $108.00 to $95.00 in a research report on Thursday, August 7th. Mizuho lifted their price objective on Light & Wonder from $80.00 to $84.00 and gave the stock an "underperform" rating in a research report on Thursday, May 8th. Finally, Benchmark cut their price objective on Light & Wonder from $100.00 to $90.00 and set a "buy" rating for the company in a research report on Friday, August 8th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $108.10.

Light & Wonder Trading Up 2.7%

The business's 50-day moving average is $92.86 and its two-hundred day moving average is $92.02. 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 stock has a market capitalization of $7.76 billion, a PE ratio of 23.35, a PEG ratio of 0.54 and a beta of 1.21.

Light & Wonder (NASDAQ:LNW - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $1.58 earnings per share for the quarter, topping 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 firm had revenue of $809.00 million during the quarter, compared to analysts' expectations of $851.29 million. During the same period in the prior year, the company earned $0.90 EPS. The firm's revenue was down 1.1% on a year-over-year basis. On average, analysts predict that Light & Wonder, Inc. will post 4.3 earnings per share for the current year.

Insider Activity

In related news, Director Hamish Mclennan bought 1,380 shares of the business's stock in a transaction dated Tuesday, August 12th. The shares were acquired at an average price of $87.61 per share, for a total transaction of $120,901.80. Following the purchase, the director owned 6,380 shares in the company, valued at $558,951.80. This trade represents a 27.60% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Timothy Throsby bought 20,000 shares of the business's stock in a transaction dated Thursday, August 14th. The stock was bought at an average price of $89.37 per share, for a total transaction of $1,787,400.00. Following the purchase, the director owned 42,082 shares in the company, valued at approximately $3,760,868.34. This represents a 90.57% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders have bought 37,756 shares of company stock worth $3,209,088. 2.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Light & Wonder

Institutional investors and hedge funds have recently bought and sold shares of the business. State of Wyoming bought a new position in Light & Wonder in the 2nd quarter worth about $66,000. Headlands Technologies LLC purchased a new stake in shares of Light & Wonder in the 2nd quarter valued at approximately $38,000. Optimist Retirement Group LLC lifted its position in shares of Light & Wonder by 41.1% in the 2nd quarter. Optimist Retirement Group LLC now owns 3,347 shares of the company's stock valued at $322,000 after acquiring an additional 975 shares in the last quarter. Two Sigma Securities LLC purchased a new stake in shares of Light & Wonder in the 2nd quarter valued at approximately $275,000. Finally, Tidal Investments LLC purchased a new stake in Light & Wonder in the 2nd quarter worth approximately $202,000. Institutional investors and hedge funds own 88.08% of the company's stock.

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.