Insider transactions can give investors a more complete view of activity within the world’s publicly-listed companies. No one has more information in relation to a company, and its prospects, than its executives and directors.
In this report, we are going to highlight some interesting insider buying at Caesars Entertainment Inc (CZR:US). Caesars is the largest gaming company in the US. Its brands include Caesars Palace, Harrah’s, Horseshoe, Eldorado, Silver Legacy, Circus Circus, Reno, and Tropicana. The company is listed on the Nasdaq and currently has a market capitalization of approximately $11.05 billion.
Insider buying at Caesars Entertainment
Our insider transaction data shows that on November 4, board member Michael Pegram purchased 25,000 CZR shares at a price of $44.74 per share. This trade cost the insider $1.12 million and increased his holding to 96,697 shares.
This trade is worth highlighting for a couple of reasons. Firstly, it is a large purchase. Our records show that it represents the largest insider purchase at Caesars Entertainment for over five years.
Secondly, it has increased the size of Mr. Pegram’s holding by 35%. The fact that the insider has boosted his holding by such a large percentage suggests that he sees a lot of value in the stock right now.
It’s worth noting that Mr. Pegram has considerable experience in the gaming and hospitality industries. Previously, he served on the Board of Directors of Eldorado Resorts between 2014 and 2020, before Eldorado was acquired by Caesars. And he has been a partner in the Carson Valley Inn in Minden, Nevada since June 2009 and a partner in the Bodines Casino in Carson City, Nevada since January 2007. So, he is likely to have a good understanding of Caesars’ prospects.
Solid Q3 results
Caesars recently posted a solid set of Q3 results that were ahead of estimates.
For the period, revenue came in at $2.9 billion, up 7% year on year, and ahead of the consensus forecast of $2.82 billion. Revenues for Caesars Digital were up 121% to $212 million.
Meanwhile, GAAP net income was $52 million compared to a net loss of $233 million for the comparable prior-year period. Earnings per share from continuing operations were $0.24, well above the consensus forecast of $0.14.
"Our third quarter results reflect a new quarterly record for consolidated adjusted EBITDA. Results in the quarter also reflect a new quarterly record for our brick and mortar properties led by a new all-time high third quarter EBITDA performance in our regional segment and continued strength in Las Vegas,” commented CEO Tom Reeg.
In light of these better-than-expected results, we see the insider buying activity here as a bullish indicator.