Light & Wonder (NASDAQ:LNW) Shares Gap Down Following Weak Earnings

Light & Wonder, Inc. (NASDAQ:LNW) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $93.63, but opened at $87.00. Light & Wonder shares last traded at $81.11, with a volume of 399,526 shares trading hands.

The company reported $0.94 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.17 by ($0.23). The business had revenue of $774.00 million during the quarter, compared to analyst estimates of $802.93 million. Light & Wonder had a return on equity of 49.91% and a net margin of 9.30%. The company’s quarterly revenue was up 2.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.88 EPS.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the company. Jefferies Financial Group increased their price target on Light & Wonder from $120.00 to $121.00 and gave the company a “buy” rating in a research report on Wednesday, January 15th. Stifel Nicolaus lifted their target price on shares of Light & Wonder from $84.00 to $95.00 and gave the stock a “hold” rating in a research report on Thursday. Macquarie reduced their price target on shares of Light & Wonder from $125.00 to $120.00 and set an “outperform” rating for the company in a research report on Thursday. Benchmark raised their price objective on shares of Light & Wonder from $114.00 to $130.00 and gave the stock a “buy” rating in a research note on Friday, February 28th. Finally, Citigroup raised shares of Light & Wonder from a “neutral” rating to a “buy” rating in a research note on Wednesday, February 19th. One analyst has rated the stock with a sell rating, three have given a hold rating, eight have issued a buy rating and two have issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $109.55.

Insider Transactions at Light & Wonder

In related news, CAO Vanja Kalabic sold 1,132 shares of Light & Wonder stock in a transaction on Thursday, March 6th. The shares were sold at an average price of $104.41, for a total value of $118,192.12. Following the completion of the sale, the chief accounting officer now owns 5,016 shares of the company’s stock, valued at approximately $523,720.56. The trade was a 18.41 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Siobhan Lane sold 3,784 shares of the stock in a transaction on Thursday, March 6th. The stock was sold at an average price of $105.37, for a total transaction of $398,720.08. Following the transaction, the chief executive officer now directly owns 21,254 shares in the company, valued at $2,239,533.98. The trade was a 15.11 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 9,867 shares of company stock valued at $1,037,884 in the last three months. Corporate insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Light & Wonder

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Versant Capital Management Inc raised its position in shares of Light & Wonder by 4,783.3% in the first quarter. Versant Capital Management Inc now owns 293 shares of the company’s stock valued at $25,000 after purchasing an additional 287 shares during the period. R Squared Ltd bought a new position in Light & Wonder in the 4th quarter worth $35,000. Farther Finance Advisors LLC lifted its position in Light & Wonder by 3,861.1% during the 1st quarter. Farther Finance Advisors LLC now owns 713 shares of the company’s stock worth $63,000 after acquiring an additional 695 shares during the last quarter. Blue Trust Inc. lifted its position in Light & Wonder by 194.3% during the 4th quarter. Blue Trust Inc. now owns 718 shares of the company’s stock worth $65,000 after acquiring an additional 474 shares during the last quarter. Finally, Harvest Fund Management Co. Ltd bought a new stake in Light & Wonder during the first quarter valued at about $71,000. 88.08% of the stock is currently owned by institutional investors and hedge funds.

Light & Wonder Trading Up 1.5 %

The company has a quick ratio of 1.61, a current ratio of 1.88 and a debt-to-equity ratio of 4.49. The company has a 50-day moving average price of $90.64 and a 200-day moving average price of $92.49. The company has a market capitalization of $6.93 billion, a price-to-earnings ratio of 25.39, a P/E/G ratio of 0.35 and a beta of 1.30.

Light & Wonder Company Profile

Light & Wonder, Inc is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services.