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Analysts Bet on Casino Stock After Earnings

Options volume is running at quadruple the intraday average

Deputy Editor
Apr 20, 2023 at 10:33 AM
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Las Vegas Sands Corp (NYSE:LVS) stock is up 4% to trade at $61.73 at last glance, after the casino name issued a stellar first-quarter report. Specifically, the company reported adjusted earnings of 28 cents per share on revenue of $2.12 billion, both of which came in above analysts' estimates thanks to higher visitation levels in march.

In response, no less than seven analysts hiked their price targets, including Citigroup to $80.50. The majority of analysts are bullish on LVS already. Of the 11 analysts in coverage, 10 now carry a "buy" or better rating, while the 12-month consensus price target of $61.47 is an 8.5% premium to current levels. 

Options traders are targeting Las Vegas Sands stock at six times the intraday average after the news. So far, 8,775 calls and 3,066 puts have been exchanged, with the April 63 call seeing the most activity, followed by the 60 call from the same monthly series. 

This interest in bullish bets is nothing new. LVS's Schaeffer's put/call open interest ratio (SOIR) of 0.63 ranks higher than just 15% of annual readings. This implies short-term options traders have operated with a call-bias.

Today's pop has Las Vegas Sands stock trading at more than two-year highs. The shares are up more than 61% year-over-year and now boast a healthy 29.4% year-to-date lead.

 

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