Traders Purchase Large Volume of Call Options on Caesars Entertainment (NASDAQ:CZR)

Key Points

• Unusual options activity: Traders purchased 22,696 Caesars call options, 87% above the average volume of 12,168, signaling increased interest in potential upside.
• Mixed operating performance: Shares ended at $29.86, near the 12-month high of $30.88. Caesars reported $2.99 billion in quarterly revenue, up 3% year over year, but missed earnings estimates with an EPS loss of $0.30.
• Analysts remain cautious: The stock has a consensus “Hold” rating and an average price target of $30.71, while insiders sold approximately $8.6 million worth of shares over the past 90 days.

Caesars Entertainment, Inc. (NASDAQ:CZR - Get Free Report) was the recipient of some unusual options trading on Tuesday. Stock traders acquired 22,696 call options on the stock. This is an increase of 87% compared to the average volume of 12,168 call options.

Caesars Entertainment Price Performance

CZR traded down $0.21 during trading on Tuesday, reaching $29.86. 836,919 shares of the company traded hands, compared to its average volume of 5,859,800. The company has a debt-to-equity ratio of 3.70, a quick ratio of 0.83 and a current ratio of 0.85. Caesars Entertainment has a 12-month low of $17.86 and a 12-month high of $30.88. The firm has a fifty day simple moving average of $29.78 and a 200 day simple moving average of $26.93. The company has a market cap of $6.08 billion, a P/E ratio of -13.10 and a beta of 1.77.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The company reported ($0.30) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.35). Caesars Entertainment had a negative net margin of 3.99% and a negative return on equity of 7.64%. The company had revenue of $2.99 billion for the quarter, compared to the consensus estimate of $2.98 billion. During the same quarter in the previous year, the business earned ($0.39) EPS. The company's quarterly revenue was up 3.0% on a year-over-year basis. On average, equities analysts forecast that Caesars Entertainment will post -0.9 EPS for the current year.

Wall Street Analyst Weigh In

Several analysts recently issued reports on CZR shares. Weiss Ratings restated a "sell (d-)" rating on shares of Caesars Entertainment in a research report on Monday, May 18th. TD Cowen downgraded shares of Caesars Entertainment from a "buy" rating to a "hold" rating and set a $31.00 price objective for the company. in a research report on Wednesday, July 29th. Zacks Research raised Caesars Entertainment from a "strong sell" rating to a "hold" rating in a report on Thursday, July 16th. Raymond James Financial lowered Caesars Entertainment from a "strong-buy" rating to a "market perform" rating in a report on Friday, May 29th. Finally, Texas Capital downgraded Caesars Entertainment from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 1st. Two equities research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $30.71.

Insiders Place Their Bets

In other Caesars Entertainment news, Director Michael E. Pegram sold 55,000 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $29.20, for a total value of $1,606,000.00. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Edmund L. Quatmann, Jr. sold 81,566 shares of the firm's stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $29.35, for a total value of $2,393,962.10. Following the completion of the transaction, the insider directly owned 18,263 shares in the company, valued at $536,019.05. The trade was a 81.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 293,463 shares of company stock worth $8,609,241. Company insiders own 1.18% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in CZR. BlackRock Inc. purchased a new position in shares of Caesars Entertainment during the second quarter valued at about $830,001,000. State Street Corp boosted its stake in Caesars Entertainment by 0.8% during the second quarter. State Street Corp now owns 7,569,822 shares of the company's stock valued at $214,907,000 after buying an additional 61,065 shares during the last quarter. Morgan Stanley boosted its stake in Caesars Entertainment by 121.0% during the fourth quarter. Morgan Stanley now owns 7,141,899 shares of the company's stock valued at $167,049,000 after buying an additional 3,910,430 shares during the last quarter. Janus Henderson Group PLC grew its holdings in Caesars Entertainment by 5.8% during the 1st quarter. Janus Henderson Group PLC now owns 6,529,700 shares of the company's stock valued at $172,582,000 after buying an additional 355,760 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund grew its holdings in Caesars Entertainment by 246,899,900.0% during the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 4,938,000 shares of the company's stock valued at $115,500,000 after buying an additional 4,937,998 shares in the last quarter. Institutional investors own 91.79% of the company's stock.

Caesars Entertainment Company Profile

Caesars Entertainment Corporation is a leading integrated gaming and hospitality company headquartered in Las Vegas, Nevada. The company owns and operates a global portfolio of resorts, casinos, and entertainment venues designed to deliver comprehensive hospitality experiences. Its business activities span hotel accommodations, gaming operations, food and beverage services, live events, and convention services, with a focus on delivering luxury and entertainment to both leisure and business travelers.

The company traces its lineage to the founding of Harrah's by William F.

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