Bally's (NYSE:BALY) Shares Gap Down - Should You Sell?

Key Points

• Bally’s shares opened sharply lower, falling from a prior close of $12.44 to an opening price of $11.47; they last traded at $11.70.
• Analyst sentiment is cautious: MarketBeat’s consensus is “Reduce”, with an average price target of $11.75; recent actions included a sell downgrade and target cuts to $10 and $7.
• Bally’s reported a quarterly loss of $2.41 per share, worse than the $1.08 loss analysts expected, although revenue of $792.23 million slightly exceeded estimates.

Shares of Bally's Corporation (NYSE:BALY - Get Free Report) gapped down prior to trading on Friday. The stock had previously closed at $12.44, but opened at $11.47. Bally's shares last traded at $11.7010, with a volume of 2,124 shares traded.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on BALY shares. Wall Street Zen downgraded Bally's from a "hold" rating to a "sell" rating in a research note on Sunday, August 23rd. Truist Financial cut their target price on Bally's from $15.00 to $10.00 and set a "hold" rating on the stock in a research report on Wednesday, August 19th. Weiss Ratings raised Bally's from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, October 28th. Finally, Barclays lowered their target price on Bally's from $8.00 to $7.00 and set an "underweight" rating for the company in a report on Wednesday, August 19th. Three equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Bally's currently has a consensus rating of "Reduce" and an average target price of $11.75.

Bally's Stock Performance

The firm has a market capitalization of $572.58 million, a P/E ratio of -1.67 and a beta of 1.83. The company's 50 day moving average is $12.51 and its 200-day moving average is $12.79. The company has a quick ratio of 0.85, a current ratio of 0.91 and a debt-to-equity ratio of 2.06.

Bally's (NYSE:BALY - Get Free Report) last posted its quarterly earnings results on Friday, August 14th. The company reported ($2.41) EPS for the quarter, missing analysts' consensus estimates of ($1.08) by ($1.33). Bally's had a negative return on equity of 40.97% and a negative net margin of 25.83%. The company had revenue of $792.23 million during the quarter, compared to analyst estimates of $789.89 million. As a group, equities analysts anticipate that Bally's Corporation will post -9.36 EPS for the current year.

Institutional Trading of Bally's

An institutional investor recently bought a new position in Bally's stock. HighTower Advisors LLC bought a new stake in Bally's Corporation (NYSE:BALY - Free Report) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 10,012 shares of the company's stock, valued at approximately $137,000. Institutional investors own 70.41% of the company's stock.

About Bally's

Bally's Corporation is a gaming and entertainment company whose business includes land-based casinos and resorts, racetracks, and online gaming. Its properties offer casino gaming, sports wagering, dining, hotel accommodations, and other entertainment. The company has operated casinos in multiple U.S. states and has offered digital gaming services in North American and international markets. Its online business has included iGaming and sports betting, alongside its physical gaming operations. Bally's was formerly known as Twin River Worldwide Holdings and adopted the Bally's name in 2020 after acquiring rights to use the brand.

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