Scientific Games (SGMS) Downgraded by Zacks Investment Research

Scientific Games (NASDAQ:SGMS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Friday.

According to Zacks, “Scientific Games with its innovative product pipeline enjoys a premium position in the gaming equipment space, as well as in the instant ticket and online lottery markets. The company’s top line continues to be driven by robust performance from the gaming and interactive businesses. Scientific Games aims at reducing costs and optimizing its operational structure to drive bottom line growth going ahead. Moreover, acquisitions like Tech Art and NYX Gaming will broaden its product pipeline in digital gaming and online lottery markets. However, leveraged balance sheet that results in significant interest expense is hurting profitability. Additionally, intense competition and unfavorable foreign exchange are major headwinds. The company has mixed record of earnings surprises in recent quarters.”

SGMS has been the topic of a number of other research reports. BidaskClub lowered Scientific Games from a “strong-buy” rating to a “buy” rating in a research report on Thursday, January 25th. Stifel Nicolaus reaffirmed a “hold” rating and set a $55.00 price target on shares of Scientific Games in a research report on Friday, February 2nd. One analyst has rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $45.20.

Scientific Games (NASDAQ:SGMS) traded down $1.00 on Friday, hitting $40.30. 402,508 shares of the company’s stock traded hands, compared to its average volume of 1,164,835. Scientific Games has a twelve month low of $19.65 and a twelve month high of $56.45. The company has a market cap of $3,854.58, a P/E ratio of -11.69 and a beta of 2.51. The company has a debt-to-equity ratio of -4.07, a current ratio of 1.83 and a quick ratio of 1.45.

In related news, Director Richard M. Haddrill sold 8,000 shares of Scientific Games stock in a transaction that occurred on Thursday, December 21st. The stock was sold at an average price of $51.28, for a total value of $410,240.00. Following the sale, the director now owns 136,542 shares of the company’s stock, valued at approximately $7,001,873.76. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Michael J. Regan sold 17,000 shares of Scientific Games stock in a transaction that occurred on Monday, November 13th. The shares were sold at an average price of $46.88, for a total value of $796,960.00. The disclosure for this sale can be found here. 40.61% of the stock is currently owned by company insiders.

Institutional investors have recently made changes to their positions in the stock. Whale Rock Capital Management LLC raised its holdings in Scientific Games by 48.0% in the 3rd quarter. Whale Rock Capital Management LLC now owns 2,093,468 shares of the technology company’s stock valued at $95,986,000 after acquiring an additional 678,561 shares in the last quarter. Lord Abbett & CO. LLC bought a new stake in Scientific Games during the 2nd quarter worth $17,104,000. Hennessy Advisors Inc. grew its position in Scientific Games by 326.6% during the 4th quarter. Hennessy Advisors Inc. now owns 822,100 shares of the technology company’s stock worth $42,174,000 after acquiring an additional 629,400 shares during the last quarter. FMR LLC bought a new stake in Scientific Games during the 2nd quarter worth $15,284,000. Finally, Dimensional Fund Advisors LP grew its position in Scientific Games by 42.2% during the 2nd quarter. Dimensional Fund Advisors LP now owns 821,330 shares of the technology company’s stock worth $21,437,000 after acquiring an additional 243,942 shares during the last quarter. 64.33% of the stock is currently owned by institutional investors and hedge funds.

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Scientific Games Company Profile

Scientific Games Corporation is a developer of technology-based products and services and associated content for the gaming, lottery and interactive gaming industries. Its segments include Gaming, Lottery and Interactive. Its portfolio includes gaming machines and game content, casino management systems, table game products and services, instant and draw-based lottery games, server-based gaming and lottery systems, sports betting technology, lottery content and services, loyalty and rewards programs, interactive gaming and social casino solutions.

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