Latest news with #LasVegasSands'
Yahoo
22-05-2025
- Business
- Yahoo
Las Vegas Sands Corp.'s (NYSE:LVS) recent 5.0% pullback adds to one-year year losses, institutional owners may take drastic measures
Institutions' substantial holdings in Las Vegas Sands implies that they have significant influence over the company's share price A total of 4 investors have a majority stake in the company with 53% ownership Insiders have been buying lately We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. If you want to know who really controls Las Vegas Sands Corp. (NYSE:LVS), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 44% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk). And so it follows that institutional investors was the group most impacted after the company's market cap fell to US$29b last week after a 5.0% drop in the share price. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 10% might not go down well especially with this category of shareholders. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. Hence, if weakness in Las Vegas Sands' share price continues, institutional investors may feel compelled to sell the stock, which might not be ideal for individual investors. In the chart below, we zoom in on the different ownership groups of Las Vegas Sands. See our latest analysis for Las Vegas Sands Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. We can see that Las Vegas Sands does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Las Vegas Sands, (below). Of course, keep in mind that there are other factors to consider, too. Las Vegas Sands is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Sheldon G Adelson Family Trust with 25% of shares outstanding. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 5.8% by the third-largest shareholder. Our research also brought to light the fact that roughly 53% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own a reasonable proportion of Las Vegas Sands Corp.. Insiders own US$5.4b worth of shares in the US$29b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling. The general public, who are usually individual investors, hold a 10% stake in Las Vegas Sands. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Our data indicates that Private Companies hold 27%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. It's always worth thinking about the different groups who own shares in a company. But to understand Las Vegas Sands better, we need to consider many other factors. Be aware that Las Vegas Sands is showing 2 warning signs in our investment analysis , you should know about... If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
24-04-2025
- Business
- Yahoo
Las Vegas Sands (NYSE:LVS) Completes US$4,739 Million Buyback & Declares US$0.25 Dividend
Las Vegas Sands experienced a 7.91% increase in its share price over the last week, coinciding with several noteworthy developments. The company executed a substantial share buyback, repurchasing 10 million shares valued at $450 million, potentially influencing shareholder sentiment positively. Additionally, Las Vegas Sands affirmed its quarterly dividend, signaling stability in shareholder returns. However, financial results for the first quarter reflected lower year-over-year performance in sales, revenue, and net income. These company-specific events likely added weight to the overall market trend, where major stock indices experienced gains driven by broader investor optimism amid positive earnings reports. Be aware that Las Vegas Sands is showing 2 risks in our investment analysis. Explore 21 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. Recent movements in Las Vegas Sands' share price, driven by a significant buyback and dividend affirmation, could influence investor sentiment positively. While the buyback reduces outstanding shares by 10 million at a cost of US$450 million, the company's Q1 financials reflect a year-over-year decline in key metrics, emphasizing ongoing reliance on Macao's recovery and China's economic performance. Over the last three years, Las Vegas Sands' total shareholder returns rose by 1.77%, highlighting a modest long-term gain compared to its peers. The 7.91% weekly lift, though substantial, isn't enough to meet the consensus analyst price target of US$55.42, with the current price at US$33.94 indicating a considerable gap. Looking at its performance relative to the market, Las Vegas Sands underperformed the US market, which returned 3.6% over the past year. Within the industry, broad optimism on earnings hasn't fully translated into a competitive edge for the firm. Expecting significant gains in Macao post-Londoner completion and Marina Bay Sands' developments could affect revenue projections, as analysts anticipate a 6.5% annual revenue growth over the next three years. Yet, there's variability in earnings forecasts, from US$2 billion to US$2.5 billion by 2028, based on handling competitive and operational challenges. A prospective 61.2% stock price increase remains a hopeful aim, dependent on Las Vegas Sands' strategic execution and broader economic conditions. Jump into the full analysis health report here for a deeper understanding of Las Vegas Sands. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:LVS. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
12-03-2025
- Business
- Yahoo
Is There An Opportunity With Las Vegas Sands Corp.'s (NYSE:LVS) 37% Undervaluation?
Las Vegas Sands' estimated fair value is US$71.43 based on 2 Stage Free Cash Flow to Equity Las Vegas Sands is estimated to be 37% undervalued based on current share price of US$44.82 Our fair value estimate is 23% higher than Las Vegas Sands' analyst price target of US$57.95 In this article we are going to estimate the intrinsic value of Las Vegas Sands Corp. (NYSE:LVS) by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. See our latest analysis for Las Vegas Sands We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$2.32b US$3.32b US$3.36b US$3.42b US$3.48b US$3.56b US$3.65b US$3.74b US$3.83b US$3.93b Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x2 Est @ 1.66% Est @ 1.98% Est @ 2.21% Est @ 2.37% Est @ 2.49% Est @ 2.57% Est @ 2.62% Present Value ($, Millions) Discounted @ 8.7% US$2.1k US$2.8k US$2.6k US$2.4k US$2.3k US$2.2k US$2.0k US$1.9k US$1.8k US$1.7k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$22b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.8%. We discount the terminal cash flows to today's value at a cost of equity of 8.7%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$3.9b× (1 + 2.8%) ÷ (8.7%– 2.8%) = US$68b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$68b÷ ( 1 + 8.7%)10= US$29b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$51b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of US$44.8, the company appears quite undervalued at a 37% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Las Vegas Sands as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.7%, which is based on a levered beta of 1.381. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Hospitality market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the American market. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. What is the reason for the share price sitting below the intrinsic value? For Las Vegas Sands, we've put together three essential items you should consider: Risks: For instance, we've identified 2 warning signs for Las Vegas Sands that you should be aware of. Future Earnings: How does LVS's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
31-01-2025
- Business
- Yahoo
Las Vegas Sands Stock Soars as Executives Predict China Growth Will Boost Macao Revenue
During their fourth-quarter earnings call, executives at hotel and casino operator Las Vegas Sands said they are confident in their future success due to their strong assets in the important gambling market of Macao. Of Las Vegas Sands' $11.3 billion in 2024 revenue, $7.1 billion came from its operations in Macao, a Chinese "Special Administrative Region" like Hong Kong. Shares of Las Vegas Sands soared 11% Thursday to approach positive territory over the last 12 Vegas Sands (LVS) shares soared Thursday, one day after executives at the hotel and casino operator said they are confident in their future success due to their strong assets in the important gambling market of Macao. A former Portuguese colony known for its numerous casinos, Macao last month marked its 25th anniversary under Chinese rule. Of Las Vegas Sands' $11.3 billion in 2024 revenue, $7.1 billion came from its operations in Macao, a Chinese "Special Administrative Region" like Hong Kong. "We believe the Chinese economy will grow, and Macao market will grow as well," Chief Executive Officer Robert Goldstein said on the company's fourth-quarter earnings call, according to a transcript provided by AlphaSense. "Gross gaming revenue in Macao should exceed $30 billion in 2025, and continue to grow." The company's numbers in Macao have been affected by the sluggish growth of China's economy. The world's largest gambling mecca generated a total of 226.8 billion Macao patacas ($28.3 billion) in gaming revenue in 2024. Macao produced 293.3 billion patacas ($36.6 billion) in gaming revenue in 2019, but numbers fell off sharply the following year because of the pandemic and have yet to fully recover. "Would we do better with a stronger Chinese economy? I think that's an easy thing to say yes to," Chief Operating Officer Patrick Dumont said. "But I think, overall, we're very happy with the direction of our business, our investment. And hopefully, as things progress over time, we'll be the beneficiary of a stronger Chinese economy and see our investments produce more cash flow." Las Vegas Sands' fourth-quarter capital expenditures totaled $547 million, including $345 million in Macao. "We believe very strongly the strength in this market," Dumont said. "We've been investing into it for that reason." Investors seemed to respond positively to the company's direction even as fourth-quarter profit missed analysts' estimates. Shares closed 11% higher to approach positive territory over the last 12 months. Read the original article on Investopedia Sign in to access your portfolio
