Sector Roundup: 3 Crashing Casino Stocks

Negative analyst attention is weighing on Las Vegas Sands Corp. (NYSE:LVS), MGM Resorts International (NYSE:MGM), and Wynn Resorts, Limited (NASDAQ:WYNN)

May 26, 2015 at 1:55 PM
facebook X logo linkedin


Casino stocks are getting hammered on negative brokerage attention today. Among the sector's notable losers are Las Vegas Sands Corp. (NYSE:LVS), MGM Resorts International (NYSE:MGM), and Wynn Resorts, Limited (NASDAQ:WYNN). Here's a look at what the analyst community has to say about this trio of names.

LVS saw its price target cut at Sterne Agee CRT (to $57) and Morgan Stanley (to $50) -- echoing the bearish brokerage attention the security received last week, and pressuring the shares 3.6% lower to $50.07. Now, the stock is down 16.4% since its early April high of $59.90.

Despite this troubling technical trajectory, Las Vegas Sands Corp.'s (NYSE:LVS) consensus 12-month price target still stands at $57.44, a nearly 15% premium to current trading levels. What's more, half of the analysts covering the shares consider them a "buy" or better, with the other half doling out a "hold" opinion -- with not a single "sell" to be found. This could pave the way for a round of downgrades and/or additional price-target reductions.

In a similar vein, MGM has dropped 2.6% to trade at $19.98, after Sterne Agee CRT and Morgan Stanley trimmed their respective price targets to $26.50 and $23. Year-over-year, the shares have given back more than one-fifth of their value. This pitiful performance could be in focus this Thursday as the gaming company holds its annual shareholder meeting.

Options traders have been surprisingly bullish toward MGM Resorts International (NYSE:MGM) in recent months. The stock's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 3.82, with nearly four calls bought to open for every put. What's more, this ratio ranks just 2 percentage points from a 52-week peak. A capitulation among these optimists could send MGM lower.

Finally, WYNN is fresh off a two-year low of $103.75 -- and was last seen 2.1% south of breakeven, at $104.34 -- after Sterne Agee CRT and Morgan Stanley slashed their price targets to $131 and $122, respectively. The stock has fallen precipitously since reaching an all-time best of $249.31 in March 2014, pressured by its 10- and 20-week trendlines. What's more, the shares are on pace to put another disastrous May in the books.

Nevertheless, short-term options traders have displayed an unusually strong affinity toward Wynn Resorts, Limited (NASDAQ:WYNN) calls over puts. The equity's Schaeffer's put/call open interest ratio (SOIR) of 0.92 ranks in the bottom quartile of its annual range. Should these bullish speculators change their tune, it could exacerbate WYNN's technical struggles.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI