Zacks Research Downgrades Caesars Entertainment (NASDAQ:CZR) to Strong Sell

Key Points

• Zacks Research has downgraded Caesars Entertainment from a "hold" rating to a "strong sell," indicating significant concerns about the company's future performance.
• Morgan Stanley cut its price target for Caesars Entertainment from $32 to $31, while other analysts have varied ratings, resulting in an average price target of $42.33 for the stock.
• Caesars reported a quarterly loss per share of ($0.39), significantly missing the consensus estimate, even as revenue increased by 2.7% year-over-year to $2.91 billion.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Monday,Zacks.com reports.

Other equities research analysts have also issued reports about the stock. Morgan Stanley cut their price target on shares of Caesars Entertainment from $32.00 to $31.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 6th. Citigroup reissued a "market outperform" rating on shares of Caesars Entertainment in a report on Friday, July 18th. The Goldman Sachs Group initiated coverage on Caesars Entertainment in a report on Monday, July 7th. They set a "buy" rating and a $36.00 price objective for the company. Barclays dropped their price target on Caesars Entertainment from $45.00 to $43.00 and set an "overweight" rating for the company in a research report on Wednesday, July 30th. Finally, Macquarie dropped their price target on Caesars Entertainment from $45.00 to $40.00 and set an "outperform" rating for the company in a research report on Wednesday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $42.33.

Caesars Entertainment Price Performance

CZR stock opened at $24.65 on Monday. The business's fifty day moving average price is $25.91 and its 200 day moving average price is $27.08. The company has a current ratio of 0.82, a quick ratio of 0.81 and a debt-to-equity ratio of 6.08. Caesars Entertainment has a 12-month low of $21.40 and a 12-month high of $45.93. The company has a market capitalization of $5.13 billion, a PE ratio of -26.79 and a beta of 2.38.

Caesars Entertainment (NASDAQ:CZR - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The company reported ($0.39) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.46). Caesars Entertainment had a negative return on equity of 4.55% and a negative net margin of 1.71%.The company had revenue of $2.91 billion for the quarter, compared to analysts' expectations of $2.85 billion. During the same quarter last year, the company earned ($0.56) EPS. Caesars Entertainment's revenue for the quarter was up 2.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Caesars Entertainment will post -0.77 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Assenagon Asset Management S.A. increased its holdings in Caesars Entertainment by 103.5% in the second quarter. Assenagon Asset Management S.A. now owns 166,209 shares of the company's stock valued at $4,719,000 after buying an additional 84,545 shares during the last quarter. DAVENPORT & Co LLC grew its holdings in Caesars Entertainment by 1,051.1% in the 1st quarter. DAVENPORT & Co LLC now owns 3,495,915 shares of the company's stock worth $87,399,000 after buying an additional 3,192,224 shares in the last quarter. Penn Capital Management Company LLC lifted its position in Caesars Entertainment by 101.9% in the first quarter. Penn Capital Management Company LLC now owns 45,207 shares of the company's stock worth $1,154,000 after purchasing an additional 22,812 shares during the period. Allspring Global Investments Holdings LLC lifted its position in Caesars Entertainment by 14.9% in the first quarter. Allspring Global Investments Holdings LLC now owns 10,495 shares of the company's stock worth $261,000 after purchasing an additional 1,360 shares during the period. Finally, GSA Capital Partners LLP acquired a new stake in Caesars Entertainment in the first quarter worth approximately $540,000. Institutional investors and hedge funds own 91.79% of the company's stock.

Caesars Entertainment Company Profile

Caesars Entertainment, Inc operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.