Bally’s Corporation [NYSE: BALY] stock went on a downward path that fall over -10.69% on Tuesday, amounting to a one-week price decrease of less than -15.66%. The company report on April 13, 2021 that GLPI Expands Relationship with Bally’s Through Strategic Transactions.
Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or “the Company”) announced that it entered into a binding term sheet with Bally’s Corporation (NYSE: BALY) (“Bally’s”) to acquire the real estate assets of Bally’s casino property in Black Hawk, CO and the property it plans to acquire in Rock Island, IL, in a transaction which is subject to regulatory approval and expected to close later this year. Total consideration for the acquisition is $150 million. The parties expect to add the properties to the master lease they are entering into in connection with Bally’s previously announced acquisitions of Tropicana Evansville and Dover Downs Hotel & Casino (“GLPI-BALY master lease”) which will generate incremental rent of $12.0 million. Normalized rent coverage on the assets is expected to be 2.25x in the first calendar year post-acquisition. The acquisitions of the real estate assets of Bally’s properties in Rock Island and Black Hawk are expected to close in early 2022.
In addition, Bally’s has granted GLPI a right of first refusal to fund the real property acquisition or development project costs associated with any and all potential future transactions in Michigan, Maryland, New York and Virginia through one or more sale-leaseback or similar transactions for a term of seven years.
Over the last 12 months, BALY stock rose by 312.61%. The one-year Bally’s Corporation stock forecast points to a potential upside of 33.78. The average equity rating for BALY stock is currently 2.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $1.74 billion, with 32.79 million shares outstanding and 29.22 million shares in the current float. Compared to the average trading volume of 392.04K shares, BALY stock reached a trading volume of 3310240 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Bally’s Corporation [BALY]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BALY shares is $82.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BALY stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Stifel have made an estimate for Bally’s Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 05, 2021. While these analysts kept the previous recommendation, KeyBanc Capital Markets raised their target price to Overweight. The new note on the price target was released on January 14, 2021, representing the official price target for Bally’s Corporation stock. Previously, the target price had yet another raise to $50, while Stifel analysts kept a Hold rating on BALY stock.
The Average True Range (ATR) for Bally’s Corporation is set at 4.98, with the Price to Sales ratio for BALY stock in the period of the last 12 months amounting to 4.67. The Price to Book ratio for the last quarter was 5.45, with the Price to Cash per share for the same quarter was set at 3.85. Price to Free Cash Flow for BALY in the course of the last twelve months was 1740.31 with Quick ratio for the last quarter at 2.00.
BALY Stock Performance Analysis:
Bally’s Corporation [BALY] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -15.66. With this latest performance, BALY shares dropped by -24.14% in over the last four-week period, additionally plugging by 119.39% over the last 6 months – not to mention a rise of 312.61% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BALY stock in for the last two-week period is set at 35.34, with the RSI for the last a single of trading hit 26.37, and the three-weeks RSI is set at 40.83 for Bally’s Corporation [BALY]. The present Moving Average for the last 50 days of trading for this stock 62.98, while it was recorded at 60.16 for the last single week of trading, and 39.55 for the last 200 days.
Insight into Bally’s Corporation Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Bally’s Corporation [BALY] shares currently have an operating margin of +5.19 and a Gross Margin at +52.65. Bally’s Corporation’s Net Margin is presently recorded at -1.47.
Return on Total Capital for BALY is now 1.61, given the latest momentum, and Return on Invested Capital for the company is -0.46. Return on Equity for this stock declined to -2.04, with Return on Assets sitting at -0.36. When it comes to the capital structure of this company, Bally’s Corporation [BALY] has a Total Debt to Total Equity ratio set at 356.22. Additionally, BALY Total Debt to Total Capital is recorded at 78.08, with Total Debt to Total Assets ending up at 58.01. Long-Term Debt to Equity for the company is recorded at 353.99, with the Long-Term Debt to Total Capital now at 77.59.
Reflecting on the efficiency of the workforce at the company, Bally’s Corporation [BALY] managed to generate an average of -$1,006 per employee. Receivables Turnover for the company is 6.09 with a Total Asset Turnover recorded at a value of 0.25.Bally’s Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.00.
BALY Stock EPS
With the latest financial reports released by the company, Bally’s Corporation posted -0.28/share EPS, while the average EPS was predicted by analysts to be reported at 0.24/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -216.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for BALY.
Bally’s Corporation [BALY] Insider Position Details
There are presently around $1,385 million, or 81.40% of BALY stock, in the hands of institutional investors. The top three institutional holders of BALY stocks are: STANDARD GENERAL L.P. with ownership of 11,471,463, which is approximately -2.337% of the company’s market cap and around 2.50% of the total institutional ownership; PAR CAPITAL MANAGEMENT INC, holding 2,752,184 shares of the stock with an approximate value of $149.44 million in BALY stocks shares; and BLACKROCK INC., currently with $67.84 million in BALY stock with ownership of nearly 3.657% of the company’s market capitalization.
Positions in Bally’s Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 67 institutional holders increased their position in Bally’s Corporation [NYSE:BALY] by around 4,123,543 shares. Additionally, 46 investors decreased positions by around 4,916,091 shares, while 11 investors held positions by with 16,471,575 shares. The mentioned changes placed institutional holdings at 25,511,209 shares, according to the latest SEC report filing. BALY stock had 32 new institutional investments in for a total of 2,159,858 shares, while 17 institutional investors sold positions of 3,848,195 shares during the same period.