4. International Game Technology PLC (NYSE:IGT)
Antara Capital Stake Value: $42,365,000
Percentage of Antara Capital’s 13F Portfolio: 2.09%
Number of Hedge Fund Holders: 35
Electronic gaming equipment, software, and network systems are designed, manufactured, and marketed by International Game Technology PLC (NYSE:IGT). Susquehanna analyst Joseph Stauff boosted his price objective on International Game Technology PLC (NYSE:IGT) from $11 to $24 on March 8 and maintained a Neutral rating on the stock.
According to Insider Monkey’s database, 35 hedge funds had a stake in International Game Technology PLC (NYSE:IGT) as of Q4 2021. The total value of the holdings was $ 575.13 million.
International Game Technology PLC (NYSE:IGT) is a new arrival in Himanshu Gulati’s portfolio, as his hedge fund bought about 1.47 million shares of the company, worth $42.37 million. 140 Summer Partners is the leading shareholder of International Game Technology PLC (NYSE:IGT), with a stake worth over $73.90 million.
Mittleman Brothers Investment Management, an investment management firm, in its fourth-quarter 2021 investor letter, mentioned International Game Technology PLC (NYSE:IGT). Here is what the fund said:
“For the third consecutive quarter, International Game Technology was among the top three contributors to portfolio results. The company reinstated a cash dividend and announced its first ever share buyback program in Q4. While both initiatives are modest in amount they are a good start given how cheap the shares remain at 7.7x EBITDA and 11x FCF. IGT’s lottery business proved its resilience through the pandemic and continues to see strong growth. The slot machine business has also stabilised and sports gambling provides a tailwind of a large secular growth story that is underappreciated with IGT. Their “PlaySports” technology is the backbone of 50 U.S. sports betting operations in 17 states, including the retail and mobile sportsbook for Resort World Las Vegas, and they are behind the scenes on many other high profile operators. MIM increased its estimate of IGT’s fair value to $39 during Q4 from $38 per share in Q3 (previously $29), which applies the same targeted EV/EBITDA multiple of 9x on estimate of 2022 EBITDA at $1.6B, and market cap. to FCF multiple of 14x estimated $550M in FCF for 2022, but with slightly lower net debt.
MIM believes its estimate is conservative as IGT’s closest peer, Scientific Games’ (SGMS) lottery business was recently sold to Brookfield Asset Management for 12x EBITDA ($6B / $500M EBITDA), and does not appear to be a better business than IGT’s lottery business (which is 80% of IGT’s overall EBITDA). https:// www.gamingintelligence.com/finance/manda/146780-scientificgames-to-sell-lottery-business-to-brookfield-business-partners/. Applying the same 12x multiple to IGT’s lottery EBITDA would boost the value of IGT’s stock to about $55 per share, well above MIM’s $39 target and the $29 year-end price.”
