Caesars Entertainment Inc. [NASDAQ:CZR] shares are showing an active tape with a current price of $53.58 on Thursday.
Caesars Entertainment Inc. is in the Consumer Cyclical sector under the Resorts & Casinos industry. This week, we are watching the stock hit price per sales of 5.91 with an earning per share of -3.20.
For the year, the stock is trading -8.22% and the five-day change stands at -4.13%. As a point of reference, the S&P 500 is trading 0.5% YTD.
The Bears are coming
Holding a Market Cap of $10.97 billion, Caesars Entertainment Inc. has seen a trading range over the last year of $6.02-$70.74.
For the last five days, CZR is down from its last closing price. The average shares trading hands each day is 6.72M, with average 10-day volume coming in at 9.92 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for CZR. When we apply the Elder Force Index to Caesars Entertainment Inc., we are seeing an Elder Force Indicator number of -1185081.52.
Recent Performance
The company’s enterprise value has gone from $7.36B to $4.62B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, CZR made a profit of 69.02 million. In addition, the company has operating cash flow of $104.2 million.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 55.25 compared to the 50-day moving average of 52.17. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. CZR currently holds a 9-day RSI of 45.29%, while 100-day RSI stands at 53.62%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. CZR’s 9-day MACD is -0.91 and the company’s 100-day MACD stands at 11.51.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
Regarding institutional holdings, FMR, LLC owns 7.89%, while the second top holder, Blackrock Inc., currently owns 6.02%.
Over the last six months, insiders have sold 9,000 with the most recent transaction from Benninger Thomas M., Director, with a sell at price 13.10 per share.
Conclusion
Overall, the recommended rating for CZR is Strong Buy. Currently, the company has 6 analysts watching the stock, and the average quarterly earnings estimate is -2.2. Quarterly revenue estimates are averaging 1.69B with the high estimate reaching 1.82B and the low at 1.39B.
To review, the current 1-year target estimate is sitting at 67.64, while the current price 53.58. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
