TLDR
- Barrow Hanley Mewhinney & Strauss expanded its LVS holdings by 43.8%, purchasing an additional 1.66 million shares valued at approximately $293 million
- Schroder Investment Management Group dramatically increased its position by 4,504%, accumulating more than 1 million shares
- LVS surpassed Q4 earnings forecasts — posting $0.85 EPS versus the $0.77 consensus — while revenue surged 26% year-over-year to $3.65 billion
- CEO Robert Goldstein divested approximately 1.2 million shares in December at $66.68 per share, totaling close to $80 million
- LVS increased its quarterly dividend payment from $0.25 to $0.30, with the majority of analysts maintaining a “Moderate Buy” rating and a $68.55 mean price target
Shares of Las Vegas Sands (LVS) began Wednesday’s session at $54.25, climbing 0.6% during trading. The stock currently sits significantly below its 52-week peak of $70.45, and remains under both its 50-day moving average of $58.26 and 200-day average of $58.99.
During the third quarter, two major institutional players made substantial investments in the casino operator. Barrow Hanley Mewhinney & Strauss expanded its stake by 43.8%, acquiring an additional 1,660,823 shares. The investment firm’s total position now comprises 5,454,013 shares with an approximate value of $293 million, representing roughly 0.81% of the company’s outstanding shares.
Schroder Investment Management Group executed an even more dramatic expansion — on a percentage basis. The firm amplified its stake by an extraordinary 4,504.2%, purchasing 1,006,463 additional shares to bring its total holdings to 1,028,808 shares valued at $55.3 million. This represents an almost complete reconstruction of their LVS position.
Multiple smaller investment firms also increased their exposure during the same period. Smartleaf Asset Management expanded its stake by 549.5%. MAI Capital Management increased holdings by 78.4%. Westside Investment Management added 48.0% to its position. Combined institutional and hedge fund ownership currently represents 39.16% of outstanding shares.
Regarding quarterly performance, LVS reported impressive fourth-quarter results. The casino operator posted earnings per share of $0.85, exceeding the Street consensus of $0.77 by $0.08. Revenue reached $3.65 billion, comfortably surpassing analyst expectations of $3.33 billion.
The revenue figure represented a 26% increase versus the comparable quarter in the previous year. Earnings per share also showed substantial improvement — LVS reported only $0.54 per share in the prior year’s Q4. The company achieved a return on equity of 91.40%, accompanied by a net margin of 12.50%.
Dividend Raised
LVS increased its quarterly dividend distribution from $0.25 to $0.30 per share. This translates to an annualized dividend of $1.20, producing a yield of 2.2% based on the current share price. The distribution was made on February 18th. The company’s payout ratio currently stands at 51.28%.
Despite the encouraging earnings performance, company insiders engaged in selling activity during December. CEO Robert Goldstein sold 1,198,650 shares on December 17th at an average price of $66.68, generating proceeds of nearly $80 million. Major shareholder Miriam Adelson also divested 77,991 shares at $67.56 the previous day. Throughout the last 90-day period, insiders have collectively sold 2,460,896 shares valued at $164.2 million.
Insider ownership currently represents 1.20% of total outstanding shares.
Analyst Targets
The analyst community remains generally bullish on the stock. Twelve analysts assign LVS a Buy rating, while six recommend Hold. The average price target sits at $68.55 — approximately 26% above the current trading level.
Goldman Sachs reduced its price objective from $80 to $73 in January while maintaining a Buy rating. Argus lowered its target from $80 to $60, also keeping a Buy recommendation. HSBC increased its price objective from $67.50 to $73.00. Jefferies adjusted its target from $78 to $72, preserving a Buy rating.
Morgan Stanley established a $66 price target in February. Citigroup elevated its target to $76.75 in December with a Buy rating.
The analyst consensus anticipates LVS will deliver $2.60 in earnings per share for the complete fiscal year.
