Following these transactions, Wright’s direct ownership of Golden Entertainment stock stands at 61,616 shares. The stock currently trades at a P/E ratio of 23.21, reflecting market expectations for future growth.
Following these transactions, Wright’s direct ownership of Golden Entertainment stock stands at 61,616 shares.
In other recent news, Golden Entertainment has been the focus of Wells Fargo (NYSE:WFC)’s recent analysis, which initiated coverage on the company with an Overweight rating. Notably, the firm emphasized Golden Entertainment’s strong balance sheet, highlighting net leverage at twice the company’s earnings, and a history of mergers and acquisitions that offer growth potential. Additionally, Wells Fargo pointed out Golden Entertainment’s ability to generate an estimated $1.1 billion in gross proceeds through sale/leaseback transactions, which could potentially value the company at $40 per share or more.
In terms of earnings, Golden Entertainment reported a decline in both revenue and EBITDA in its third-quarter earnings call for 2024. The company cited a 5% decrease in revenue to $161 million and a 21% drop in EBITDA to $34 million, primarily due to lower visitation caused by extreme summer temperatures in Las Vegas and reduced spending among lower-tier customers. Despite this, management remains optimistic, expecting an uptick in the fourth quarter and beyond.
Furthermore, Wells Fargo underlined Golden Entertainment’s attractive valuation, trading at 7.6 times its estimated 2025 enterprise value to EBITDA (EV/EBITDA) and 6.9 times its 2026 estimate. This valuation is considered a discount compared to its historical forward-looking average of approximately 9 times and regional peers’ average of around 8.3 times. The firm also noted Golden Entertainment’s high free cash flow conversion of 55% compared to Boyd Gaming (NYSE:BYD)’s 40%, due to its lower leverage and interest expenses.
Lastly, the company has expanded its share repurchase program by $100 million, reflecting management’s confidence in the company’s financial health. These recent developments underline the company’s strategic initiatives and robust capital structure, positioning Golden Entertainment towards recovery and growth despite recent challenges.
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