Casino Stock Higher on Reports of Hedge Fund's Push for Sale

HG Vora Capital has allegedly built a stake in CZR

Managing Editor
Sep 13, 2018 at 9:57 AM
facebook twitter linkedin

The Coca-Cola Co
The Coca-Cola Co
The Coca-Cola Co
The Coca-Cola Co
The Coca-Cola Co

Shares of casino stock Caesars Entertainment Corporation (NASDAQ:CZR) were volatile in pre-market action, and are higher in early trading, amid reports that an activist hedge fund could be pushing for a sale. Specifically, the New York Post said HG Vora Capital has been building a stake in Caesars, and is pushing for the divestiture of assets or a sale of the company. At last check, CZR stock is up 1.5% at $10.50.

Caesars stock has shed 18% in 2018, and on Aug. 1 suffered a massive post-earnings plunge. Since touching an annual low of $8.55 that day, the stock has recovered roughly 23%, but its gains have been capped by the 50-day moving average. 

Despite the stock's technical underperformance, analyst sentiment on the casino name is mostly optimistic. Of the seven brokerage firms in coverage, six sport a "strong buy" rating on CZR, while its average 12-month price target of $13.78 stands at a 33% premium to current levels.

On the other hand, short interest soared 22.3% during the past two reporting periods, and now represents a whopping 66.4% of the stock's total available float. At CZR's average daily trading volume, it would take shorts just about four days to buy back their bearish bets.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners