This stock generates significant interest from institutional investors and hedge funds who now hold 97.72% of the stock.
Caesars Entertainment, Inc is a casino/gaming and hotel firm that owns and runs casinos that include poker, keno, racing, and sports betting; eating establishments, bars, nightclubs, and lounges; hotels; and entertainment venues. It also offers personnel and management services, retail businesses selling accessories, souvenirs, and decorative products, and online sports betting and iGaming services. As a company that is heavily invested in "social activities," the company is prone to macro-environmental effects which is why the company has been working hard to develop its digital infrastructure and they are ahead of schedule which is excellent news for investors.
This stock in particular is heavily invested in by institutional investors and other professional traders. As such, the involvement of institutional investors has contributed to the correlation between earnings estimate revisions and short-term price movement, since these large professionals utilize earnings and earnings forecasts to evaluate the fair value of a company's shares. This is what we saw with Caesar Entertainments (CZR)s recent earning report for the third quarter of 2022.
Caesars Entertainment (CZR) 3Q22
Of course, macroeconomic uncertainty looms in the future. If employment losses start to occur in large numbers, things could get worse for Caesars. As a result, the amount of money that may be used at a casino would also decrease. Even though inflation is still a nightmare, Caesars seems interestingly unaffected by the fact that we have already experienced several months of "horror" levels of inflation. The desire to win large may still be the driving force behind growth reflected in the Caesars' strong earnings report.
The gambling giant has seen its stock price go up and down this year but posted impressive 3Q22 earnings that sent investors into a frenzy. The corporation generated $2.69 billion in revenue during this period last year (3Q21). This year, Caesars pulled in an impressive $2.89 billion for the quarter, above average projections by 1.7%.
Caesars Entertainment's 1-year high is $106.69 and the 1-year low is $31.31. The Debt to equity for the company is 6.53, the quick ratio is 0.78, and the current ratio is 0.80. The company's fifty-day and 200-day moving averages are $41.03 and $44.82, respectively.
A significant upward trend can also be seen in the company's adjusted EBITDA, which in the most recent quarter reached $1 billion. Additionally, over the past three quarters, overall liabilities have decreased, falling from $33.49 billion in December 2021 to $32.96 billion in June 2022. Analysts are favorable of this stock with most analysts except Susquehanna which has decreased their price target down from $32 to $27. With an average target price of $69.83, analyst price targets range from $27 per share to $102 per share.
In addition, shortly after earnings were announced, director Michael E. Pegram purchased 25,000 shares of the company's stock on Friday, November 4th, according to information revealed in a regulatory filing with the Securities & Exchange Commission. The average price paid for the shares, with a total market value of $1,118,500.00, was $44.74. Following the purchase, the director now directly owns 96,697 shares of the business, worth roughly $4,326,223.78.
Online Betting Off To A Great Start
This quarter saw the first profit for Caesars' online betting business. In fact, they turned profitable a year earlier than Caesars anticipated. The company reported a 121% increase in revenue from Caesars Online betting to $212 million. The business has been quickly expanding its network of locations where digital betting is legal. Even though legalized sports betting won't begin until January 1, 2023, Caesars just launched its Sportsbook app live in Ohio.
Yesterday on November 15th, 2022, the company announced that the Caesars Sportsbook app is now available for download on iOS and Android devices for sports fans in Maryland who can now take advantage of special early offers when they deposit funds ahead of the debut.
AI Trading Forecast for CZR
The key benefit of using AI for stock market analysis is its ability to continuously and objectively assess more assets throughout the day. Our AI stock prediction system and big data analytics can be used together to enhance market knowledge, result modeling, and decision-making.
On Tuesday, November 1, 2022, we publicly issued our biweekly forecast to our subscribers who were receiving exclusive market insights based on artificial intelligence. One of the best-performing stock choices from that projection is CZR.
Click here to see the original forecast published on November 1 2022 with all the stock picks from that day in each of the six-time outlooks (Day - Year).
In this stock forecast, the corresponding Signal Confidence may be seen (SC). When combined with machine learning, these incredibly complex mathematical functions for statistical programming and modeling are able to compare their current coefficients and algorithms to newly added data and then adapt to increase the accuracy of the models through a process of validation and reflection. The Signal Confidence (SC), which is calculated by the AI trading system based on the historical accuracy of each prior financial asset prediction in conjunction with current market variables, is expressed as a percentage out of 100%.
Stock Ticker | Open: Nov 1, 2022 | Close: Nov 15, 2022 | ROI% |
Caesars Entertainment (CZR) | $45.25 | $54.30 | 20% |
Subscribers who bought our number CZR stock pick for the November 1st, 2022 biweekly forecast would have netted a profit of 20% or $9.05 per share on this single shorter-term trade. Please remember that discretion should always be used when analyzing the market. Your own due diligence is always required and you should always get advice from a licensed & certified financial counselor prior to implementing any financial plans.
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Sources: 1. CNN Business, "Caesars Entertainment Inc (NASDAQ:CZR)" (2022)
2. Yahoo Finance, "Caesars Entertainment, Inc. (CZR)" (2022)
3. UNITED STATES SECURITIES AND EXCHANGE COMMISSION, "STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP" (2022)
5. Caesars.com, "Caesars Sportsbook" (2022)
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