Latest news with #LasVegasSandsCorp
Yahoo
24-07-2025
- Business
- Yahoo
Unusual Volume in Las Vegas Sands Call Options - Investors Bullish on Macao Gambling
There has been a huge, unusual volume in long-dated call options for Las Vegas Sands Corp. (LVS) today after its Q2 results release yesterday. It showed investors are bullish on the Macao gambling scene. LVS stock is up over +4.0% today at $50.67 per share after the earnings release. A huge volume of in-the-money (ITM) LVS call options for expiration on Jan. 16, 2026. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Tariff Deals Spark Unusual Options Trading in Carrier Global Corp Stock Low IV Alert: Stocks that Could be Ready to Pop Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. That is a very strong signal that the investors who bought these calls expiring in 176 days (almost 6 months from now), expect to see LVS stock much higher. In effect, it works out to a cheaper way to buy into the stock. This can be seen in today's Barchart Unusual Stock Options Activity Report. It shows that over 45,000 call option contracts have traded at the $45.00 call option exercise price, even though the stock price is over $50.00. That means the trades were bought 'in-the-money' by the call option buyers. The midpoint price for these calls is just over $8.00 (i.e., $7.95 bid, $8.15 ask, or $8.05 midpoint). So, instead of paying $50.67 per 100 shares, an investor buying these calls only has to shell out $8.05. But the breakeven price, after paying the exercise price (on or before Jan. 16, 2026), is less than 5% over today's price: $45.00 +8.05 = $53.05 $53.05 / $50.67 = 1.047 -1 = +4.69% premium over the trading price The investor has almost 6 months for LVS to rise over $53.05, the intrinsic value of these long-dated calls. That seems very likely to occur, based on its results today. Let's look at that. Strong Gambling Activity Results in China Despite the company's name, Las Vegas Sands makes all of its money in Macao, China, gambling and resorts (as well as one in Singapore). So, this stock is a play on the Chinese gambling scene. The Chinese are gambling a lot, and Las Vegas Sands is making good money, based on its Q2 results. For example, LVS reported that revenue at $3.175 billion in Q2 rose by over +15.2% from last year's $2.76 billion. Moreover, its operating income skyrocketed +32.5% from $591 million last year to $783 million. In addition, its 'Consolidated adjusted property EBITDA' (i.e., earnings before interest, taxes, depreciation, and amortization) was up +24.3% to $1.33 billion. So far, the company has not released its cash flow statement, so there is no indication yet of its free cash flow. Nevertheless, its operating income margin was 24.66% compared to 21.4% last year in Q2. Given that its capex was $286 million, we can estimate that its free cash flow was about $500 million (i.e., $781m-$286m) before any net working capital flows. That works out to a FCF margin of 15.74% (i.e., $500m/$3,175m revenue) for the quarter. This is a strong FCF result, and implies LVS could be worth substantially more. Price Target for LVS Sands Stock (LVS) For example, based on analysts' estimates over the next two years, revenue could range between $12.13 billion in 2025 and $12.65 billion next year (i.e., $12.39 billion on average). So, using a 15% FCF margin (slightly lower than in Q2), we can estimate $1.86 billion in FCF over the next 12 months (NTM): $12.39b x 0.15 = $1.86 billion FCF That is significantly higher than my estimate of $1.237 billion FCF it made over the last 12 months (ending Q2). Moreover, using a 3.6% FCF yield (i.e., the same as multiplying by 27.8x), Las Vegas Sands stock could be worth over $51 billion $1.86b x 27.8 = $51.7 billion market value Just to be conservative, let's call it $50 billion. That is still 45.3% over today's market cap of $34.4 billion. In other words, LVS stock is worth +45% more than its price today of $50.67, or $73.62 per share Why ITM Call Buying Works Here So, you can see why an investor in these in-the-money (ITM) call options likes LVS stock. For example, let's say that the stock rises to $73.62. The estimated return (ER) is as follows: Intrinsic value = $73.62 - $45.00 exercise price = $28.62 ER = $28.62 / $8.05 price paid for ITM calls = 3.57 -1 = +257% Expected Return And remember that is just for a slightly less than this 6-month period. Moreover, given that all calls have extrinsic value, it's likely that the call options will trade higher than the $28.62 intrinsic value price (at least up until several weeks or days before expiration, assuming it's in-the-money by this amount). The bottom line is that investors in the calls expect to make a very good expected return. However, keep in mind that buying calls entails a large amount of risk, especially if they are not hedged. You can lose 100% of your investment. But, at least the calls have good intrinsic value as they are in-the-money. For example, let' say that the stock stays at $50.67 over the next 6 months. The investor would only lose: $8.05 - ($50.67-$45.00) = $8.05 - $5.67 = -$2.38 potential loss at expiration. $2.38/$8.05 = -29.6% Expected Value (EV) Return So, let's use an advantage player (AP) mentality with this situation. For example, let's assume that there is a 30% probability that the investor can make a 257% return, and a 70% probability that a loss of 29.6% could occur: 0.30 x 2.57 = +77.1% , plus 0.70 x -0.296 = -20.7% = Expected Value Rtn: +56.4% In other words, the investor doing this trade has a better than +56% expected value (EV) return. This assumes that there is a 70% likelihood that the in-the-money call option purchase fails. That is a very good expected return. So, you can see why there is so much volume in today's Las Vegas Sands in-the-money calls expiring on Jan. 16, 2026. On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Bangkok Post
15-07-2025
- Business
- Bangkok Post
Las Vegas Sands bets on Asia's young rich
Las Vegas Sands Corp is targeting Southeast Asia's young and wealthy as it kicks off an ambitious US$8-billion expansion of its luxury resort in Singapore that is core to the casino operator's future growth plans. 'As those younger people create wealth for themselves, they want experiences that allow them the benefits of their success,' president and incoming chief executive officer Patrick Dumont said during an interview on Tuesday. Customers who visit the Marina Bay Sands integrated resort complex on business trips often then return with their families for a holiday, he said. The new Sands complex, which is expected to open in January 2031 subject to government approval, includes a new fourth tower with 570 luxury suites, about 18,600 square metres of conference space and a 15,000-seat live entertainment arena. The project underscores Sands' historic pivot to focus on its Asian operations — typically its biggest revenue earners — after the company said in 2021 that it would sell its iconic properties on the Las Vegas Strip. Singapore has emerged as a burgeoning luxury hub with a robust base of affluent locals, as well as a popular holiday destination where tourism spending has climbed to a record. Singapore overtook Macau as Sands' most profitable business after reporting a record adjusted earnings before interest, taxes, depreciation and amortisation of $605 million in the first quarter. In February, Marina Bay Sands Pte secured a multi-tranche loan of $9 billion — the largest such financing ever in Singapore — to help fund the project, for which has costs have ballooned from the original estimate of $3.4 billion made in 2019. Still, Sands faces challenges to its regional ambitions. Macau, the world's biggest gambling hub by turnover, has an uncertain near-term outlook as China pushes the territory to diversify away from gaming to curb capital outflow and money laundering. And in 2020, Sands dropped plans to open a casino resort in Japan due to concerns over the terms of the country's legislation including the duration of gaming licences. Elsewhere, Thailand's government this month withdrew a bill to legalise casinos as political turmoil deepens, although Dumont reiterated that Sands would consider a potential expansion into the country. 'It would be a very different development than anything that would happen here in Singapore,' he said. 'If the opportunity is right, we'll consider it.' As well as selling its Las Vegas properties, Sands' push to streamline its operations has also led it to abandon a bid to develop a New York casino, partly over concerns that rising online betting would hurt the property.
Yahoo
11-06-2025
- Business
- Yahoo
Investing in Las Vegas Sands (NYSE:LVS) three years ago would have delivered you a 37% gain
Buying a low-cost index fund will get you the average market return. But if you invest in individual stocks, some are likely to underperform. Unfortunately for shareholders, while the Las Vegas Sands Corp. (NYSE:LVS) share price is up 32% in the last three years, that falls short of the market return. Zooming in, the stock is actually down 3.7% in the last year. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Las Vegas Sands became profitable within the last three years. That would generally be considered a positive, so we'd expect the share price to be up. You can see below how EPS has changed over time (discover the exact values by clicking on the image). It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. It might be well worthwhile taking a look at our free report on Las Vegas Sands' earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Las Vegas Sands the TSR over the last 3 years was 37%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. Investors in Las Vegas Sands had a tough year, with a total loss of 1.6% (including dividends), against a market gain of about 14%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. However, the loss over the last year isn't as bad as the 2% per annum loss investors have suffered over the last half decade. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. It's always interesting to track share price performance over the longer term. But to understand Las Vegas Sands better, we need to consider many other factors. Even so, be aware that Las Vegas Sands is showing 2 warning signs in our investment analysis , you should know about... Las Vegas Sands is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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
15-05-2025
- Business
- Yahoo
Las Vegas Sands Corp. (LVS) Declined on Investors' Concerns
Baron Funds, an investment management company, released its 'Baron Real Estate Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, stocks were sold due to economic growth slowdown, inflation, and policymaking issues, including Baron Real Estate Fund®, without considering value. The fund declined 6.69% (Institutional Shares) in the quarter compared to a 3.11% decline for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index) and a 0.76% gain for the MSCI US REIT Index (the REIT Index). In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Las Vegas Sands Corp. (NYSE:LVS). Las Vegas Sands Corp. (NYSE:LVS) owns and operates integrated resorts in Macao and Singapore. The one-month return of Las Vegas Sands Corp. (NYSE:LVS) was 29.45%, and its shares lost 9.01% of their value over the last 52 weeks. On May 14, 2025, Las Vegas Sands Corp. (NYSE:LVS) stock closed at $42.42 per share with a market capitalization of $29.975 billion. Baron Real Estate Fund stated the following regarding Las Vegas Sands Corp. (NYSE:LVS) in its Q1 2025 investor letter: "Las Vegas Sands Corp. (NYSE:LVS) is a global leader in the development and operation of luxury casino resorts in Macau and Singapore. At its recent share price of only $33 per share, the company's shares are valued at only 7.5 times 2025 estimated cash flow (EBITDA), versus a long term average of 14 to 15 times cash flow. The shares of Las Vegas Sands Corporation underperformed in the first quarter as investors remained concerned about the lack of growth in the Macau market given the ongoing economic challenges in China. There is also uncertainty about the return on investment the company will generate from its recent $2 billion investment in Macau. We are optimistic about the prospects for this investment and believe Las Vegas Sands should capture additional market share and generate a respectable return on capital in 2026." The dazzling Las Vegas Strip lined with luxury Integrated Resorts, seen from a high elevation. Las Vegas Sands Corp. (NYSE:LVS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Las Vegas Sands Corp. (NYSE:LVS) at the end of the fourth quarter which was 47 in the previous quarter. While we acknowledge the potential of Las Vegas Sands Corp. (NYSE:LVS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Las Vegas Sands Corp. (NYSE:LVS) and shared the list of best gambling stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
