Light & Wonder (NASDAQ:LNW) Shares Gap Down – Should You Sell?

Light & Wonder, Inc. (NASDAQ:LNW) gapped down before the market opened on Wednesday . The stock had previously closed at $102.50, but opened at $91.57. Light & Wonder shares last traded at $94.05, with a volume of 112,963 shares.

Wall Street Analyst Weigh In

Several research firms have weighed in on LNW. B. Riley started coverage on Light & Wonder in a research report on Tuesday, October 8th. They set a “buy” rating and a $120.00 price objective on the stock. Macquarie cut their price target on Light & Wonder from $122.00 to $117.00 and set an “outperform” rating for the company in a research note on Wednesday, September 25th. Truist Financial dropped their price objective on Light & Wonder from $120.00 to $115.00 and set a “buy” rating for the company in a report on Wednesday, October 23rd. Benchmark restated a “buy” rating and issued a $114.00 price target on shares of Light & Wonder in a research report on Thursday, August 8th. Finally, JPMorgan Chase & Co. upped their price target on shares of Light & Wonder from $107.00 to $111.00 and gave the stock an “overweight” rating in a report on Thursday, August 8th. One research analyst has rated the stock with a sell rating, four have issued a hold rating, six have issued a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $107.36.

Light & Wonder Price Performance

The company has a quick ratio of 1.58, a current ratio of 1.85 and a debt-to-equity ratio of 4.90. The firm has a market cap of $8.15 billion, a P/E ratio of 28.93, a P/E/G ratio of 0.43 and a beta of 1.75. The business’s 50 day moving average is $98.90 and its two-hundred day moving average is $99.91.

Light & Wonder (NASDAQ:LNW) last released its earnings results on Tuesday, November 12th. The company reported $1.34 EPS for the quarter, topping the consensus estimate of $1.16 by $0.18. The business had revenue of $817.00 million during the quarter, compared to analysts’ expectations of $826.65 million. Light & Wonder had a return on equity of 50.89% and a net margin of 9.30%. As a group, analysts anticipate that Light & Wonder, Inc. will post 4.41 earnings per share for the current year.

Light & Wonder announced that its board has authorized a stock repurchase plan on Wednesday, August 7th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the company to purchase up to 10.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Light & Wonder

Institutional investors and hedge funds have recently made changes to their positions in the stock. Capital Performance Advisors LLP acquired a new stake in Light & Wonder in the third quarter valued at approximately $29,000. GAMMA Investing LLC boosted its stake in Light & Wonder by 59.6% during the 2nd quarter. GAMMA Investing LLC now owns 407 shares of the company’s stock valued at $43,000 after purchasing an additional 152 shares during the last quarter. Allspring Global Investments Holdings LLC bought a new stake in Light & Wonder during the 3rd quarter worth approximately $108,000. Smith Anglin Financial LLC purchased a new stake in shares of Light & Wonder in the second quarter worth approximately $213,000. Finally, Cynosure Group LLC bought a new position in shares of Light & Wonder in the first quarter valued at approximately $310,000. Institutional investors own 88.08% of the company’s stock.

Light & Wonder Company Profile

Light & Wonder, Inc operates as a cross-platform games company in the United States and internationally. The company operates through three segments: Gaming, SciPlay, and iGaming segments. The Gaming segment sells game content and gaming machine; video gaming terminals; video lottery terminals, including conversion kits and spare parts; and table products, including automatic card shufflers, deck checkers, table roulette chip sorters and other land-based table gaming equipment.