Envestnet Boosts Stake in Light & Wonder with New Share Purchase

Envestnet Asset Management Inc. has significantly increased its investment in Light & Wonder, Inc. by purchasing an additional 4,215 shares during the second quarter of 2023. This acquisition raised Envestnet’s stake in the gaming and entertainment company by 32.3%, bringing its total holdings to 17,257 shares, which are valued at approximately $1,661,000.

The recent filing with the Securities and Exchange Commission highlights a notable trend among institutional investors. Other firms have also adjusted their positions in Light & Wonder. For instance, IFP Advisors Inc. nearly doubled its stake, increasing it by 198.9% to a total of 269 shares valued at $26,000. Similarly, AlphaQuest LLC raised its holdings by 41.8%, now owning 604 shares worth $58,000.

In addition, Harvest Fund Management Co. Ltd purchased a new stake valued at approximately $71,000 during the first quarter. US Bancorp DE increased its stake by 18.7%, now holding 1,164 shares worth $101,000. PNC Financial Services Group Inc. also boosted its position by 25.1%, owning 1,939 shares valued at $168,000. Overall, institutional investors control 88.08% of Light & Wonder’s stock.

Analyst Ratings and Market Performance

The stock has recently attracted attention from analysts. Stifel Nicolaus lowered its price target from $95.00 to $83.00, maintaining a “hold” rating. Meanwhile, JPMorgan Chase & Co. downgraded the stock from “overweight” to “neutral” and adjusted its price objective from $108.00 to $95.00. Macquarie also revised its target down from $122.00 to $117.00, rating it as “outperform.”

Currently, five investment analysts have assigned a “buy” rating, four have issued a “hold” rating, and one has given a “sell” rating. According to MarketBeat.com, Light & Wonder has a consensus rating of “hold” with a price target of $102.14.

As of October 31, 2023, shares of Light & Wonder opened at $91.14, reflecting an increase of 1.8%. The company’s stock has fluctuated, reaching a one-year low of $69.56 and a high of $113.94. With a market capitalization of $7.43 billion, the company’s price-to-earnings ratio stands at 23.01, while its debt-to-equity ratio is noted at 6.86.

Recent Earnings and Future Projections

Light & Wonder’s latest quarterly earnings report, released on November 5, 2023, showed that the company achieved earnings per share (EPS) of $1.81, exceeding analysts’ consensus estimate of $1.45 by $0.36. The firm reported a net margin of 10.89% and a return on equity of 71.17%. Revenue for the quarter reached $841 million, slightly lower than the forecast of $866.97 million, but a 2.9% increase compared to the same period last year.

Looking ahead, analysts predict that Light & Wonder will post earnings of $4.30 per share for the current fiscal year, reflecting the company’s ongoing development and market presence.

Light & Wonder, Inc. operates as a global gaming company, focusing on the development of content and digital markets across various segments, including Gaming, SciPlay, and iGaming. The company continues to adapt to changing market dynamics and investor interest as it seeks to expand its portfolio and enhance shareholder value.