Perhaps timely catching Caesars Entertainment Inc. (CZR) would be a good idea

Caesars Entertainment Inc. (NASDAQ: CZR) stock jumped 1.49% on Tuesday to $51.09 against a previous-day closing price of $50.34. With 3.48 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.64 million shares. During the session, the Resorts & Casinos company that operates in wider Consumer Cyclical sector, reached to the highest price of $52.45 whereas the lowest price it dropped to was $50.23. The 52-week range on CZR shows that it touched its highest point at $89.80 and its lowest point at $31.31 during that stretch. It currently has a 1-year price target of $65.36. Beta for the stock currently stands at 2.86.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CZR was up-trending over the past week, with a rise of 5.82%, but this was up by 13.76% over a month. Three-month performance surged to 28.98% while six-month performance rose 21.12%. The stock lost -29.21% in the past year, while it has gained 22.81% so far this year. A look at the trailing 12-month EPS for CZR yields -3.80 with Next year EPS estimates of 0.86. For the next quarter, that number is 0.14. This implies an EPS growth rate of 64.90% for this year and 125.30% for next year. EPS is expected to grow by 27.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -61.60%.

Float and Shares Shorts:

At present, 214.00 million CZR shares are outstanding with a float of 213.66 million shares on hand for trading. On Oct 13, 2022, short shares totaled 10.55 million, which was 4.92% higher than short shares on Sep 14, 2022. In addition to Mr. Gary L. Carano as the firm’s Exec. Chairman, Mr. Thomas Robert Reeg CFA serves as its CEO & Director.

Institutional Ownership:

Through their ownership of 96.04% of CZR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.48% of CZR, in contrast to 4.54% held by mutual funds. Shares owned by individuals account for 37.26%. As the largest shareholder in CZR with 10.01% of the stake, The Vanguard Group, Inc. holds 21,473,766 shares worth 21,473,766. A second-largest stockholder of CZR, Capital Research & Management Co, holds 20,897,417 shares, controlling over 9.74% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in CZR, holding 16,645,732 shares or 7.76% stake. With a 8.24% stake in CZR, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 17,683,884 shares are owned by the mutual fund manager. The American Funds AMCAP Fund, which owns about 3.79% of CZR stock, is the second-largest Mutual Fund holder. It holds 8,122,143 shares valued at 337.88 million. Vanguard Total Stock Market Index holds 2.89% of the stake in CZR, owning 6,193,610 shares worth 257.65 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CZR since 16 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CZR analysts setting a high price target of $102.00 and a low target of $27.00, the average target price over the next 12 months is $65.79. Based on these targets, CZR could surge 99.65% to reach the target high and fall by -47.15% to reach the target low. Reaching the average price target will result in a growth of 28.77% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CZR will report FY 2022 earnings on 02/20/2024. Analysts have provided yearly estimates in a range of -$3.14 being high and -$3.50 being low. For CZR, this leads to a yearly average estimate of -$3.31. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Caesars Entertainment Inc. surprised analysts by $0.01 when it reported $0.24 EPS against a consensus estimate of $0.23. The surprise factor in the prior quarter was -$0.75. Based on analyst estimates, the high estimate for the next quarter is $0.35 and the low estimate is -$0.90. The average estimate for the next quarter is thus $0.08.

Summary of Insider Activity:

Insiders traded CZR stock several times over the past three months with 9 Buys and 7 Sells. In these transactions, 189,966 shares were bought while 49,485 shares were sold. The number of buy transactions has increased to 46 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 459,430 while 142,083 shares were sold.

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