Insider Activity Report: Caesars Entertainment (CZR)

Michael Pegram, a director at Caesars Entertainment (CZR), recently bought 40,000 shares. The buy increased his take by 25%, and came to a total cost of $1.45 million.

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  • That’s the second buy from the director this year, following a 15,000 share buy in March at a cost just over $621,000. He was also a buyer twice in 2023, along with the company CEO, who bought $370,725 of shares. In the past year, there has been just one insider sale.

    Overall, Caesars insiders own 0.7% of shares.

    The casino and hospitality provider is down 17% over the past year. The company has struggled operationally, with revenues down 3%, and earnings have been uneven.

    However, Caesars trades at 10 times earnings, and consumer spending on experiences tends to favor companies such as casinos, even as customers have pulled back on spending on other areas.

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  • Action to take: Shares likely have some upside from here, especially after falling to a 52-week low. Speculative investors could see double-digit returns for shares in the coming weeks from a move off the recent low.

    For traders, a simple call option trade will work to play a share rebound. The September $43 calls, last trading for about $1.95, could see high double-digit returns if shares trend higher in the coming months.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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