Las Vegas Sands Corp. experienced a significant surge in trading activity on October 24, 2023, as investors acquired a remarkable 105,358 call options. This figure marks an increase of approximately 525% compared to the average daily volume of 16,865 call options, indicating heightened investor interest in the company’s stock.
The NYSE:LVS stock traded at $67.41 during the session, rising by $1.74. The day’s trading volume reached 2,014,075 shares, well below the average volume of 5,611,608 shares. Las Vegas Sands has a market capitalization of approximately $45.58 billion, a debt-to-equity ratio of 7.42, and a beta of 1.03, reflecting its volatility relative to the market.
Financial Performance and Recent Earnings
On October 22, 2023, Las Vegas Sands announced its quarterly earnings, revealing earnings per share (EPS) of $0.78. This exceeded analysts’ consensus estimates of $0.62 by $0.16. The company reported revenue of $3.33 billion for the quarter, surpassing the anticipated $3.04 billion and representing a year-over-year increase of 24.2%. In the previous year, the company had posted an EPS of $0.44.
The casino operator’s financial metrics indicate robust performance, with a net margin of 12.69% and a return on equity of 73.14%. Analysts project that Las Vegas Sands will achieve an EPS of 2.6 for the current year.
Insider Trading and Institutional Investment
In related developments, insider trading activity has been notable. D. Zachary Hudson, Executive Vice President, sold 100,000 shares on November 7, 2023, at an average price of $64.99, totaling approximately $6.5 million. Following this sale, Hudson held 13,735 shares valued at around $892,638, representing an 87.92% reduction in his ownership.
Additionally, CEO Robert G. Goldstein sold 700,000 shares on October 29, 2023, at an average price of $58.88, for a total of $41.22 million. Over the last three months, company insiders have sold 2.1 million shares valued at approximately $126.22 million. Currently, insiders hold 1.20% of the company’s stock.
Several hedge funds and institutional investors have adjusted their positions in Las Vegas Sands. Allianz Asset Management GmbH increased its stake by 12.9% in the first quarter, acquiring an additional 7,245 shares. Universal Beteiligungs und Servicegesellschaft mbH lifted its position by 61.6%, now holding 129,729 shares. In total, hedge funds and institutional investors now own 39.16% of the stock.
Market Analysts’ Perspectives
Market analysts have recently provided mixed reviews on Las Vegas Sands. Wall Street Zen upgraded the stock from a “hold” to a “buy” rating on September 7, 2023. The Goldman Sachs Group raised its price target from $57.00 to $64.00 while maintaining a “neutral” rating. Barclays also increased its price target from $59.00 to $62.00 with an “overweight” rating.
Mizuho adjusted its target price from $56.00 to $63.00, categorizing the stock as an “outperform.” Currently, analysts have assigned two “Strong Buy” ratings, ten “Buy” ratings, and six “Hold” ratings to the stock, resulting in an average rating of “Moderate Buy” and a consensus target price of $64.60.
Las Vegas Sands Corp., along with its subsidiaries, develops, owns, and operates integrated resorts primarily in Macao and Singapore. Its portfolio includes notable properties such as The Venetian Macao Resort Hotel and Marina Bay Sands.
As investor interest continues to grow amidst this activity, Las Vegas Sands appears well-positioned for ongoing developments in the gaming and hospitality sectors.
