October 3, 2024 – Caesars Entertainment (NASDAQ:CZR), the parent company of iconic casinos like Caesar Palace, Harrah’s, revealed a $500 million stock repurchase plan to buy back its own shares and issued a $1 billion bond offering. The money from the debt sale is said to be used to pay off older debt, freeing up cash for the repurchase, and potentially improving their overall financial health.
Improvement in financial health is important for Caesar Palace’s overall performance. According to GuruFocus, while the company’s profitability and growth ranks are relatively strong at 8 and 9, respectively, its financial health is a concern, ranking at only 3.
GuruFocus helps investors to get a bigger picture of a stock’s performance with its GF score. And the company’s overall score on GuruFocus is 86, suggesting good outperformance potential. Reducing overall financial burden by issuing bonds is seen as a positive step towards improving Caesar Entertainment’s financial health and eventually brings about a better overall performance score.
Their stock repurchase plan also helps them to potentially increase the value of each remaining share. The hope of a healthier prospect has generated significant excitement among investors that buoyed the stock up by 4% following the announcements yesterday. The company’s strategic moves are expected to result in a positive impact on Caesar Entertainment’s future financial performance and furthermore cloud drive the stock price higher.
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This article first appeared on GuruFocus.