1. Caesars Entertainment Inc. (NASDAQ:CZR)
Short % of Float As of April 16: 11.59%
Number of Hedge Fund Holders: 79
Caesars Entertainment Inc. (NASDAQ:CZR) is a gaming and hospitality company. It owns, leases, brands, or manages domestic properties in 18 states with items like slot machines, video lottery terminals, e-tables, and hotel rooms. It also operates and conducts retail and online sports wagering across 32 jurisdictions in North America, and iGaming in five jurisdictions in North America.
In 2024, Caesars Digital achieved records with $1.2 billion in net revenue, which was a year-over-year improvement of 20%. In Q4 alone, Caesars Digital generated $303 million in net revenue. The company noted that unfavorable sports betting outcomes in October and December impacted these figures. Excluding these low hold results, the digital segment’s revenue would have been ~$370 million.
A lot of this growth came from the iGaming sector, which showed a 65% net revenue growth during Q4. This was fueled by product offerings within the Caesars Palace Online app and the rollout of the new Horseshoe app. In January, Caesars Entertainment Inc. (NASDAQ:CZR) launched its first branded online Caesars Casino Live dealer studio in Pennsylvania, with plans to introduce similar branded studios in New Jersey and Michigan in H1 of the year.
Buckley Capital stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its Q3 2024 investor letter:
“We recently added Caesars Entertainment, Inc. (NASDAQ:CZR) to our portfolio at an average price of ~$37 per share. We believe that in owning CZR, we are getting world-class assets in both its owned casino real estate and digital businesses – which will comprise almost 70% of 2025 EBITDA – while paying a rock-bottom price. With three important catalysts about to materialize in the next 12 months – significant deleveraging, the digital business inflecting to substantial profitability, and massive FCF generation – we believe investor enthusiasm will turn more positive and the shares will re-rate higher. Caesars currently has an $8.6 billion market cap. We believe it could trade 50% to 100% higher within the next 12-24 months.
CZR as it exists today was formed in July 2020 by the merger of legacy Caesars Entertainment and Eldorado Resorts. Eldorado’s management, led by CEO Tom Reeg, who has an outstanding track record of increasing shareholder value, took over CZR’s operations. Reeg’s focus on maximizing long-term FCF and deleveraging the business aligns with shareholders’ interests. He holds 700,000 shares when fully vested (worth $25 million)…” (Click here to read the full text)
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