Truist Financial Downgrades Caesars Entertainment (NASDAQ:CZR) to Hold

Key Points

• Truist Financial downgraded Caesars Entertainment from “buy” to “hold” and trimmed its price target to $31 from $32, implying only modest upside from the current share price.
• Wall Street sentiment on CZR is mixed but generally cautious: the stock now has an average Hold rating, with 6 Buy, 11 Hold, and 1 Sell ratings, and a consensus price target of $32.73.
• Caesars recently reported quarterly earnings that missed profit expectations even though revenue topped estimates, and the company continues to carry elevated leverage with a debt-to-equity ratio of 3.25.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) was downgraded by research analysts at Truist Financial from a "buy" rating to a "hold" rating in a report released on Friday,MarketScreener reports. They presently have a $31.00 price target on the stock, down from their prior price target of $32.00. Truist Financial's price target points to a potential upside of 6.95% from the stock's current price.

Several other research firms have also weighed in on CZR. Barclays reduced their price objective on shares of Caesars Entertainment from $39.00 to $35.00 and set an "overweight" rating for the company in a research report on Wednesday, February 18th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $31.00 price target (down from $35.00) on shares of Caesars Entertainment in a report on Friday. Zacks Research upgraded Caesars Entertainment from a "strong sell" rating to a "hold" rating in a research report on Friday, March 6th. Wall Street Zen upgraded Caesars Entertainment from a "sell" rating to a "hold" rating in a report on Saturday, April 4th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Caesars Entertainment in a research report on Monday, May 18th. Six investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $32.73.

Caesars Entertainment Stock Performance

Shares of CZR traded down $0.10 during trading hours on Friday, reaching $28.99. 5,069,453 shares of the company's stock traded hands, compared to its average volume of 6,186,917. The firm has a market capitalization of $5.90 billion, a price-to-earnings ratio of -12.23 and a beta of 1.77. The company has a debt-to-equity ratio of 3.25, a current ratio of 0.85 and a quick ratio of 0.83. Caesars Entertainment has a twelve month low of $17.86 and a twelve month high of $31.58. The business's fifty day simple moving average is $27.28 and its two-hundred day simple moving average is $24.49.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The company reported ($0.48) earnings per share for the quarter, missing the consensus estimate of ($0.24) by ($0.24). Caesars Entertainment had a negative return on equity of 7.88% and a negative net margin of 4.19%.The company had revenue of $2.87 billion during the quarter, compared to analyst estimates of $2.85 billion. During the same period in the previous year, the company earned ($0.54) EPS. The business's revenue for the quarter was up 2.7% compared to the same quarter last year. Analysts predict that Caesars Entertainment will post -0.5 earnings per share for the current year.

Institutional Trading of Caesars Entertainment

Hedge funds and other institutional investors have recently modified their holdings of the business. Hantz Financial Services Inc. grew its holdings in shares of Caesars Entertainment by 110.6% during the third quarter. Hantz Financial Services Inc. now owns 971 shares of the company's stock valued at $26,000 after buying an additional 510 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in Caesars Entertainment by 456.7% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,119 shares of the company's stock worth $26,000 after acquiring an additional 918 shares in the last quarter. Sunbelt Securities Inc. boosted its position in Caesars Entertainment by 181.6% during the 3rd quarter. Sunbelt Securities Inc. now owns 1,042 shares of the company's stock worth $28,000 after acquiring an additional 672 shares during the period. CoreCap Advisors LLC boosted its position in Caesars Entertainment by 44.6% during the 4th quarter. CoreCap Advisors LLC now owns 1,581 shares of the company's stock worth $37,000 after acquiring an additional 488 shares during the period. Finally, Stance Capital LLC purchased a new position in Caesars Entertainment during the 3rd quarter valued at about $43,000. Institutional investors and hedge funds own 91.79% of the company's stock.

Caesars Entertainment News Roundup

Here are the key news stories impacting Caesars Entertainment this week:

• Positive Sentiment: Caesars agreed to be acquired by Fertitta Entertainment for $31 per share in cash, giving investors a clear takeout price and a substantial premium. Reuters: Caesars Entertainment to be bought by Fertitta Entertainment for $17.6 billion
• Positive Sentiment: The all-cash structure reduces deal uncertainty for shareholders and signals that the buyer is willing to assume Caesars’ heavy debt load to close the transaction. WSJ: Caesars to Be Acquired by Fertitta Entertainment in All-Cash Deal
• Neutral Sentiment: Analysts and market commentary suggested the deal could support broader casino industry consolidation, potentially reshaping the competitive landscape for gaming stocks. Proactive Investors: Caesars Entertainment buyout potential catalyst for broader casino consolidation
• Negative Sentiment: Several shareholder law firms have launched investigations into whether Caesars obtained a fair price, highlighting possible legal scrutiny around the transaction. PR Newswire: Shareholder Alert investigation
• Negative Sentiment: Commentary noted Caesars faces ongoing industry challenges, including softer Las Vegas visitation and competition from online gambling, which helps explain why the company was willing to sell. WSJ: With Caesars Deal, Tilman Fertitta Doubles Down on Vegas Comeback

About Caesars Entertainment

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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