Key Takeaways
Contents
- Barrow Hanley Mewhinney & Strauss expanded its LVS holdings by 43.8%, purchasing an additional 1.66 million shares valued at approximately $293 million
- Schroder Investment Management Group dramatically increased its stake by 4,504%, accumulating more than 1 million shares
- The company surpassed Q4 earnings forecasts with $0.85 EPS versus the $0.77 estimate, while revenue climbed 26% year-over-year to $3.65 billion
- CEO Robert Goldstein divested approximately 1.2 million shares in December at $66.68 per share, totaling close to $80 million
- The company elevated its quarterly dividend from $0.25 to $0.30, while analyst consensus remains at “Moderate Buy” with an average price target of $68.55
Shares of Las Vegas Sands (LVS) began trading Wednesday at $54.25, climbing 0.6% during the session. The stock currently trades significantly under its 52-week peak of $70.45, and sits beneath both its 50-day moving average of $58.26 and 200-day moving average of $58.99.
During the third quarter, two major institutional players substantially increased their LVS exposure. Barrow Hanley Mewhinney & Strauss expanded its stake by 43.8%, acquiring 1,660,823 additional shares. The investment firm’s total position now includes 5,454,013 shares with an approximate value of $293 million, representing around 0.81% of the company’s total equity.
Schroder Investment Management Group made an even more dramatic move in percentage terms. The firm expanded its holdings by an eye-popping 4,504.2%, purchasing 1,006,463 shares to bring its total to 1,028,808 shares valued at $55.3 million. This represents an almost complete reconstruction of their LVS investment.
Multiple smaller investment funds also expanded their positions during the quarter. Smartleaf Asset Management increased its stake by 549.5%. MAI Capital Management boosted holdings by 78.4%. Westside Investment Management raised its position by 48.0%. Combined institutional and hedge fund ownership currently represents 39.16% of outstanding shares.
Regarding financial performance, LVS reported impressive Q4 results that exceeded expectations. The casino operator posted earnings per share of $0.85, surpassing the analyst consensus of $0.77 by $0.08. Revenue reached $3.65 billion, significantly beating the anticipated $3.33 billion.
This revenue represented a 26% increase compared to the same period last year. Earnings per share also showed substantial improvement — the company had reported just $0.54 per share in Q4 of the previous year. Las Vegas Sands achieved a return on equity of 91.40%, accompanied by a net margin of 12.50%.
Dividend Increase Announced
LVS announced an increase to its quarterly dividend from $0.25 to $0.30 per share. This translates to an annualized dividend of $1.20, providing a yield of 2.2% based on the current share price. The payment was distributed on February 18th. The company’s payout ratio stands at 51.28%.
Despite the positive earnings report, company insiders engaged in significant selling activity during December. CEO Robert Goldstein sold 1,198,650 shares on December 17th at an average price of $66.68, generating approximately $80 million in proceeds. Major shareholder Miriam Adelson also divested 77,991 shares at $67.56 the previous day. Throughout the past 90 days, insiders collectively sold 2,460,896 shares worth $164.2 million.
Insider ownership currently accounts for 1.20% of total outstanding shares.
Wall Street Price Targets
Analyst sentiment remains predominantly bullish on the stock. Twelve analysts have assigned Buy ratings to LVS, while six recommend Hold. The consensus price target sits at $68.55 — representing approximately 26% upside from current trading levels.
Goldman Sachs adjusted its target downward from $80 to $73 in January while maintaining its Buy rating. Argus reduced its target from $80 to $60, also keeping its Buy recommendation. HSBC increased its price target from $67.50 to $73.00. Jefferies revised its target from $78 to $72, sustaining its Buy rating.
Morgan Stanley established a $66 target in February. Citigroup raised its price target to $76.75 in December alongside a Buy rating.
The analyst community collectively anticipates LVS will deliver $2.60 in earnings per share for the full fiscal year.
