A significant development in the financial landscape has seen Victory Capital Management Inc. substantially increase its stake in Golden Entertainment, Inc., signaling robust institutional confidence in the diversified entertainment company. This strategic acquisition highlights the dynamic nature of the stock market and the keen interest major investment firms hold in established entities like Golden Entertainment.
Victory Capital Management, a prominent institutional investor, notably expanded its holdings in Golden Entertainment (NASDAQ: GDEN) by a notable 2.9% during the first quarter. This increment involved the acquisition of an additional 849 shares, culminating in the fund’s total ownership of 30,600 shares. Such an increase solidifies their position, representing 0.12% of Golden Entertainment’s total stock, valued at $808,000 at the close of the most recent reporting period, underscoring a calculated investment strategy.
Beyond Victory Capital, a multitude of other institutional investors have actively adjusted their portfolios concerning Golden Entertainment. For instance, the New York State Common Retirement Fund significantly boosted its stake by 10.6% in the first quarter, now commanding 425,565 shares valued at $11,231,000. Similarly, Envestnet Asset Management Inc. increased its holdings by 9.0%, bringing its total to 80,241 shares worth $2,118,000, illustrating broad-based institutional investor interest.
The trend of increasing institutional interest continues with Principal Financial Group Inc. raising its Golden Entertainment shares by 2.6%, now holding 102,344 shares valued at $2,701,000. DAVENPORT & Co LLC also amplified its stake by 10.7%, acquiring 1,431,300 shares worth a substantial $37,956,000. Furthermore, Inscription Capital LLC made a new entry into the stock, acquiring approximately $165,000 worth of shares, collectively demonstrating robust market activity around GDEN stock. Overall, institutional investors and hedge funds collectively own a significant 70.73% of the company’s stock.
Analyzing Golden Entertainment’s market performance provides crucial insights into its valuation. The company’s stock opened at $27.61 on a recent Friday, exhibiting a market capitalization of $729.73 million. With a price-to-earnings ratio of 70.79 and a beta of 1.83, the stock’s volatility is noteworthy. Its 50-day moving average stands at $29.10, closely aligned with its two-hundred-day moving average of $29.02, while the 12-month low and high stand at $22.66 and $35.49 respectively, painting a comprehensive picture of its recent trading range.
Beyond share performance, Golden Entertainment’s financial health indicators present a mixed but generally stable outlook. The company maintains a current ratio of 0.95 and a quick ratio of 0.87, suggesting moderate short-term liquidity. A debt-to-equity ratio of 0.86 indicates a balanced approach to financing its operations through both debt and equity. These financial metrics are essential for understanding the company’s operational efficiency and risk profile in the broader stock market analysis.
The company recently announced a quarterly dividend of $0.25 per share, disbursed on July 9th to shareholders of record by June 25th. This translates to an annualized dividend of $1.00 and a yield of 3.6%. However, Golden Entertainment’s payout ratio currently stands at 256.41%, which is a critical point for financial news observers and potential investors to consider, as it indicates a significant portion of earnings is being distributed.
Equities analysts have offered varied perspectives on GDEN shares, contributing to the discourse around Golden Entertainment. Citigroup maintained an “outperform” rating, while other firms like JMP Securities upgraded the stock from “hold” to “buy.” Conversely, Truist Financial downgraded it from “buy” to “hold,” also adjusting its price objective. The consensus among two hold ratings and six buy ratings results in an average “Moderate Buy” rating, with an average price target of $36.50, reflecting diverse expert opinions on the entertainment company’s future trajectory.
Golden Entertainment, Inc. operates a diverse entertainment platform across the United States, structured into four key segments: Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming. This multi-faceted operational model includes owning and managing casinos, casino resorts, taverns, and slot machines in various third-party non-casino locations, underscoring its broad footprint within the entertainment and gaming sectors. This comprehensive business model supports its position as a key player in the leisure industry, attracting continued institutional investment interest.
