Insiders have access to real-time information on their companies and often also have a wealth of experience that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.
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, and Tropicana, among many others. The company is listed on the NASDAQ Global Select Market and currently has a market capitalization of $11.14 billion.
Caesars Entertainment Inc: Insider Buying
Our insider translation data shows that on May 6, board member Courtney Mather purchased 16,000 CZR shares at a price of $60.12 per share. This trade cost the insider $961,920 and increased his holding to 30,160 shares.
Bullish Trading Activity
We see this trade as significant for a number of reasons.
Firstly, Mr. Mather is an investment professional. Previously, he served as Portfolio Manager of Icahn Capital – the entity through which Carl C. Icahn manages investment funds – from December 2016 to March 2020. Before that, he was Managing Director of Icahn Capital from April 2014 to November 2016. Earlier in this career, he worked at Goldman Sachs where he focused on identifying and analyzing investment opportunities for both the firm and its clients. So, it’s fair to assume that he knows what he is doing here.
Secondly, this is a large trade from Mr. Mather. In buying 16,000 shares, he has boosted the size of his holding by 113%. This indicates that he is very confident the stock is set to move higher.
Third, this is not the only large buy from an insider here recently. Back in March, two insiders, including CEO Tom Reeg, made large purchases. Together, the two insiders spent around $1.6 million on stock.
Caesars’ latest results for the first quarter of 2022 showed that the group is making a solid recovery from the pandemic.
For the quarter, revenue came in at $2.9 billion, up from $1.8 billion a year earlier. Meanwhile, same-store adjusted EBITDA, excluding the Caesars Digital segment, was $850 million versus $530 million the year before. The Las Vegas segment posted an all-time first quarter EBITDA record while the group’s Regional segment delivered solid EBITDA and margin growth.
Looking ahead, management was optimistic that the group can continue to advance.
“Consumer trends remain healthy and we are optimistic for the balance of the year," said CEO Tom Reeg.
"Our properties are performing above expectations and we anticipate significant debt reduction in 2022 through a combination of strong operating cash flows and expected asset sale proceeds," added CFO Bret Yunker.
In light of these comments from management, we see the insider buying here as a bullish indicator.