Analyst: This Casino Stock is a 'Golden Opportunity'

Short sellers have been ramping up their exposure to GDEN

Oct 5, 2018 at 2:37 PM
facebook twitter linkedin


Deutsche Bank initiated coverage on Golden Entertainment Inc (NASDAQ:GDEN) with a "buy" rating and $40 price target -- a 64% premium to the stock's current trading price. The brokerage firm said the Las Vegas-based casino name is a "golden opportunity hiding in plain sight," and waxed optimistic on potential for growth. GDEN stock initially gapped 5.8% higher at the open, but was last seen trading down 4.5% at $24.38.

Broadening the scope, the shares of GDEN climbed all the way up to $34.45 in mid-July -- coming within a chip-shot of their December record high of $34.75 -- but have since shed 29%. More recently, the stock breached long-term support atop its 320-day moving average, with this trendline keeping a tight lid on September rally attempts.

gden stock chart on oct 5

Nevertheless, all the analysts covering Golden Entertainment echo Deutsche Bank's upbeat outlook, with each maintaining a "strong buy" rating. Plus, the average 12-month price target sits all the way up at $39.25.

Short sellers, on the other hand, have been increasing their bearish exposure to the stock. Short interest surged 22% in the most recent reporting period, to 1.77 million shares. This accounts for a healthy 10.4% of GDEN's available float, or 3.3 times the average daily pace of trading.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners