Key Highlights
- 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
- The company exceeded Q4 earnings projections with $0.85 EPS versus $0.77 anticipated, while revenue surged 26% year-over-year to $3.65 billion
- Chief Executive Robert Goldstein divested approximately 1.2 million shares during December at $66.68 per share, totaling close to $80 million
- The casino operator boosted its quarterly dividend payment from $0.25 to $0.30, while analysts predominantly maintain a “Moderate Buy” stance with an average price objective of $68.55
Shares of Las Vegas Sands (LVS) began Wednesday’s trading session at $54.25, registering a 0.6% gain for the day. The stock currently trades significantly beneath its 52-week peak of $70.45, and also sits below both its 50-day moving average of $58.26 and 200-day moving average of $58.99.
During the third quarter, two institutional investment firms executed substantial position increases in the stock. Barrow Hanley Mewhinney & Strauss expanded its holdings by 43.8%, acquiring an additional 1,660,823 shares. This brings the firm’s total position to 5,454,013 shares with an estimated value of approximately $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 investment firm increased its stake by an extraordinary 4,504.2%, purchasing 1,006,463 shares to bring its total holdings to 1,028,808 shares valued at $55.3 million. This represents an almost complete reconstruction of their investment position.
Numerous smaller investment funds also expanded their exposure during the quarter. Smartleaf Asset Management increased its position by 549.5%. MAI Capital Management posted a 78.4% gain. Westside Investment Management added 48.0%. Collectively, institutional investors and hedge funds now control 39.16% of outstanding shares.
Regarding quarterly performance, LVS reported solid results that exceeded expectations in Q4. The casino operator announced EPS of $0.85, surpassing the consensus estimate of $0.77 by $0.08. Revenue reached $3.65 billion, significantly beating the $3.33 billion analyst forecast.
This revenue performance marked a 26% increase versus the comparable quarter from the previous year. Earnings per share also showed substantial improvement — the company had reported only $0.54 per share during Q4 of the prior year. Las Vegas Sands achieved a return on equity of 91.40%, accompanied by a net margin of 12.50%.
Dividend Enhancement
LVS increased its quarterly dividend distribution from $0.25 to $0.30 per share. This translates to $1.20 on an annualized basis, delivering a yield of 2.2% based on current market prices. The dividend distribution occurred on February 18th. The company’s payout ratio currently stands at 51.28%.
Notwithstanding the impressive earnings performance, company insiders conducted significant sales during December. Chief Executive Officer Robert Goldstein disposed of 1,198,650 shares on December 17th at an average transaction price of $66.68, producing proceeds approaching $80 million. Major shareholder Miriam Adelson similarly sold 77,991 shares at $67.56 the preceding day. Throughout the last 90 days, insiders have collectively sold 2,460,896 shares generating $164.2 million.
Insider ownership currently represents 1.20% of total outstanding stock.
Street Price Targets
The analyst community maintains a generally optimistic outlook on the stock. Twelve analysts assign LVS a Buy rating, while six recommend Hold. The consensus price objective stands at $68.55 — approximately 26% above current trading levels.
Goldman Sachs reduced its target from $80 to $73 in January while maintaining a Buy recommendation. Argus decreased its target from $80 to $60, also preserving its Buy rating. HSBC elevated its target from $67.50 to $73.00. Jefferies adjusted from $78 to $72, keeping its Buy recommendation.
Morgan Stanley established a $66 target during February. Citigroup raised its target to $76.75 in December accompanied by a Buy rating.
The analyst community collectively anticipates LVS will generate $2.60 EPS for the complete fiscal year.
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