| Monday | ||||
Unusual total active… Unusual total active option classes on open include: Everi Holdings (EVRI), China Mobile (CHL), PepsiCo (PEP), JPMorgan (JPM), Cleveland-Cliffs (CLF), ON Semiconductor (ON), McDonald's (MCD), Wayfair (W), iShares Silver Trust (SLV), and Home Depot (HD). | ||||
| Friday | ||||
Roth Capital analyst… Roth Capital analyst David Bain initiated coverage of Everi Holdings with a Buy rating and $17 price target. Everi deserves the casino supplier "peer-high stock multiple" as its competitors lack financial technology, have less earnings visibility and less upside optionality, Bain tells investors in a research note. The analyst's sum-of-the-parts analysis yields a "base-case valuation" of $17 per share. He sees a "high-case" of $24 and "low-case" of $11.50. The stock closed Thursday down 6c to $4.66. | ||||
| Over a week ago | ||||
Everi Holdings is down… Everi Holdings is down -9.9%, or -56c to $5.08. | ||||
| Over a month ago | ||||
Raymond James analyst… Raymond James analyst John Davis lowered the firm's price target on Everi Holdings to $10 from $14 and keeps a Strong Buy rating on the shares following Q1 results that were largely in-line with expectations and encouraging re-opening commentary. Davis says that while the recovery will take time, the "lights have started to come back on" and the stock is quite inexpensive with it down over 50% from pre-COVID-19 levels. | ||||
Reports Q1 revenue… Reports Q1 revenue $113.3M, consensus $116.11M. Michael Rumbolz, CEO of Everi, said, "The significant improvement in our operating metrics in the first two months of 2020, including revenue, earnings and cash flow, demonstrates the strength in our business prior to the outbreak of the COVID-19 pandemic. Our performance during that time, which included a 21% year-over-year increase in the daily win per unit of our installed base and a 17% year-over-year increase in the total number of cash access transactions in our FinTech business for January and February, offers clear evidence of our operating momentum and contributed to the margin improvement we experienced. Since the onset of the pandemic and the resulting closure of our customers' casinos in mid-March, our attention has been on addressing the impact on our employees and their families, our customers and our Company. We acted aggressively to preserve cash and improve our liquidity position to allow the Company to achieve our long-term goals as our customers' operations begin to reopen. These actions included dramatically reducing our near-term cash burn rate, accessing the capital markets in April for an incremental $125 million term loan and amending certain financial covenants of our existing credit agreement." | ||||
Pre-earnings options… Pre-earnings options volume in Everi Holdings is 3.3x normal with calls leading puts 16:1. Implied volatility suggests the market is anticipating a move near 31.0%, or $2.02, after results are released. Median move over the past eight quarters is 7.6%. | |
Everi Holdings is up… Everi Holdings is up 12.4%, or 66c to $5.99. |
| Over a quarter ago | ||||
Jefferies analyst David… Jefferies analyst David Katz lowered his price targets on multiple companies in the gaming equipment sector, saying that the coronavirus crisis demonstrates that suppliers are "managing around" the fortunes of their casino customers, which challenges 2020. Katz added that, conversely, these companies have shown through cycles that their cost bases and capital needs are more flexible and that strong product prevails in all environments. The analyst noted that he projects the property closures of the casino industry onto his supplier models. Katz cut his price target on Everi Holdings (EVRI) to $10 from $16, his target on International Game Technology (IGT) to $7 from $10, his target on PlayAGS (AGS) to $7 from $13, and his target on Scientific Games (SGMS) to $10.50 from $30. The analyst kept Buy ratings on Everi and PlayAGS and Hold ratings on International Game Technology and Scientific Games. | ||||
Everi Holdings is down… Everi Holdings is down -12.9%, or -54c to $3.64. | ||||
Meetings to be held in… Meetings to be held in Texas March 30-31 hosted by SunTrust. | ||||