Light & Wonder (NASDAQ:LNW) Shares Gap Down on Disappointing Earnings

Light & Wonder, Inc. (NASDAQ:LNW)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. 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.

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

Analyst Ratings Changes

LNW has been the subject of several recent analyst reports. Jefferies Financial Group raised their price objective on shares of Light & Wonder from $120.00 to $121.00 and gave the stock a “buy” rating in a research report on Wednesday, January 15th. Mizuho lifted their price target on shares of Light & Wonder from $80.00 to $84.00 and gave the company an “underperform” rating in a research note on Thursday. JPMorgan Chase & Co. increased their price objective on shares of Light & Wonder from $103.00 to $110.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 26th. Benchmark raised their target price on Light & Wonder from $114.00 to $130.00 and gave the company a “buy” rating in a research note on Friday, February 28th. Finally, Truist Financial dropped their price target on Light & Wonder from $115.00 to $110.00 and set a “buy” rating on the stock in a research note on Wednesday, April 23rd. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, eight have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, Light & Wonder presently has an average rating of “Moderate Buy” and a consensus target price of $109.55.

Insider Activity at Light & Wonder

In other Light & Wonder news, CEO Siobhan Lane sold 3,784 shares of the business’s stock in a transaction that occurred on Thursday, March 6th. The shares were sold at an average price of $105.37, for a total value of $398,720.08. Following the completion of the transaction, the chief executive officer now owns 21,254 shares of the company’s stock, valued at $2,239,533.98. The trade was a 15.11 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Vanja Kalabic sold 1,132 shares of the firm’s stock in a transaction on Thursday, March 6th. The shares were sold at an average price of $104.41, for a total transaction of $118,192.12. Following the sale, the chief accounting officer now owns 5,016 shares in the company, valued at approximately $523,720.56. This trade represents a 18.41 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 9,867 shares of company stock valued at $1,037,884. Company insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Light & Wonder

Hedge funds and other institutional investors have recently modified their holdings of the company. Inceptionr LLC purchased a new stake in Light & Wonder in the fourth quarter worth approximately $261,000. Y Intercept Hong Kong Ltd bought a new position in shares of Light & Wonder during the fourth quarter valued at about $596,000. AXQ Capital LP increased its holdings in shares of Light & Wonder by 94.6% in the fourth quarter. AXQ Capital LP now owns 7,198 shares of the company’s stock worth $622,000 after buying an additional 3,500 shares during the period. Teacher Retirement System of Texas increased its holdings in shares of Light & Wonder by 29.2% in the fourth quarter. Teacher Retirement System of Texas now owns 23,903 shares of the company’s stock worth $2,065,000 after buying an additional 5,397 shares during the period. Finally, CIBC Private Wealth Group LLC lifted its stake in shares of Light & Wonder by 107.8% in the 4th quarter. CIBC Private Wealth Group LLC now owns 20,528 shares of the company’s stock valued at $1,756,000 after acquiring an additional 10,647 shares during the last quarter. 88.08% of the stock is currently owned by hedge funds and other institutional investors.

Light & Wonder Price Performance

The firm has a fifty day moving average of $91.13 and a two-hundred day moving average of $92.56. The company has a current ratio of 1.88, a quick ratio of 1.61 and a debt-to-equity ratio of 4.49. The company has a market capitalization of $6.83 billion, a PE ratio of 25.01, a PEG 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.