Analyst, Options Traders Bet on Casino Stock After Earnings

The casino and resort giant reported fourth-quarter results last night

Shares of Las Vegas Sands Corp (NYSE:LVS) are 0.9% higher at $50.06 at last glance, after the casino and resort giant last night reported fourth-quarter earnings and revenue that topped Wall Street’s estimates.  

In response, J.P. Morgan Securities raised its price target to $59 from $56. In its bull note, the analyst said it thinks “LVS 4Q23 results should be viewed favorably in relation to recently subdued investors’ expectations and China-macro-concern-driven awful investor sentiment.” Coming into today, the majority of analysts were already bullish. In fact, nine of 11 covering brokerages rated LVS a “buy” or better versus two that recommended a tepid “hold.” 

Options traders are also weighing in, with Las Vegas Sands stock’s normally quiet options pits already seeing four times the average intraday volume. Most popular is the January 2024 50-strike call that expires at the end of tomorrow’s session. 

A broader look shows a bullish bias amongst options traders. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OM X PHLX (PHLX), LVS’ 50-day call/put ratio of 6.48 ranks in the 93rd percentile of annual readings. This means options traders have preferred calls over puts during the last 10 weeks.

Thanks to today’s jump, Las Vegas Sands stock now boasts a 1.6% year-to-date lead, though it remains 9.1% lower over the last 12 months. The equity was able to clear long-term resistance at its 160-day moving average out of the gate today, but has since pulled back below the trendline. However, LVS does boast support from its 120-day moving average, after battling with the trendline since the beginning of the year.

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