Bally's Corporation (BALY) Bundle
Who Invests in Bally's Corporation (BALY) and Why?
Who Invests in Bally's Corporation (BALY) and Why?
Understanding the investor profile of Bally's Corporation involves examining the different types of investors, their motivations, and the strategies they employ.
Key Investor Types
The investor landscape for Bally's Corporation includes:
- Retail Investors: Individual investors who purchase shares through brokerage accounts, often influenced by market trends and company performance.
- Institutional Investors: Large organizations such as pension funds, mutual funds, and insurance companies that invest substantial capital. As of September 30, 2024, institutional ownership stood at approximately 82% of total shares outstanding.
- Hedge Funds: Investment funds that employ various strategies to achieve high returns. Notable hedge funds invested in Bally's include Winton Group Ltd. and Highfields Capital Management.
Investment Motivations
Investors are attracted to Bally's Corporation for several reasons:
- Growth Prospects: The expansion of the gaming and entertainment industry, with a focus on digital platforms and iGaming, has positioned Bally's for potential growth. The company reported a revenue of $1.87 billion for the nine months ended September 30, 2024, compared to $1.84 billion in the same period of the previous year.
- Market Position: Bally's has established a strong presence in key markets such as Atlantic City, Chicago, and Las Vegas, enhancing its competitive advantage.
- Financial Performance: Despite a net loss of $482 million for the nine months ended September 30, 2024, investors are optimistic about future profitability as the company continues to optimize operations.
Investment Strategies
Investors typically employ various strategies when investing in Bally's Corporation:
- Long-term Holding: Institutional investors often adopt a long-term perspective, betting on the company's strategic initiatives and market growth.
- Short-term Trading: Retail investors may engage in short-term trading, capitalizing on market volatility and price movements. The stock has seen fluctuations, with a 52-week high of $22.75 and a low of $9.06.
- Value Investing: Some investors view Bally's as undervalued, particularly given its expansion plans and market potential, despite recent losses.
Investor Activity Overview
The following table summarizes the recent investor activity in Bally's Corporation:
| Investor Type | Percentage of Ownership | Recent Activity |
|---|---|---|
| Retail Investors | 18% | Increased positions following recent price drops. |
| Institutional Investors | 82% | Consistent buying interest, especially from large funds. |
| Hedge Funds | N/A | Active trading strategies; some funds have increased holdings. |
As of the latest reports, Bally's Corporation has a market capitalization of approximately $1.05 billion as of September 30, 2024. This reflects the company's standing amidst evolving market dynamics and investor sentiments.
Institutional Ownership and Major Shareholders of Bally's Corporation (BALY)
Institutional Ownership and Major Shareholders
As of September 30, 2024, Bally's Corporation (BALY) has a total of approximately 40,653,346 shares outstanding.
Top Institutional Investors
The following table outlines the largest institutional investors and their respective shareholdings in Bally's Corporation:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock Inc. | 3,850,000 | 9.47% |
| Vanguard Group Inc. | 3,600,000 | 8.85% |
| State Street Corporation | 2,500,000 | 6.15% |
| FMR LLC (Fidelity) | 2,200,000 | 5.41% |
| Invesco Ltd. | 1,800,000 | 4.43% |
Changes in Ownership
Recently, institutional investors have shown varied interest in Bally's Corporation. In the last quarter, BlackRock Inc. increased its stake by 1.2 million shares, while Vanguard Group decreased its holdings by approximately 200,000 shares. Overall, the institutional ownership has shifted slightly, indicating a net increase in institutional stakes by about 1 million shares across various investors.
Impact of Institutional Investors
Institutional investors play a significant role in influencing Bally's Corporation's stock price and strategic direction. Their collective buying power often leads to increased stock volatility. The presence of large institutional investors enhances market confidence, which can stabilize stock prices during periods of uncertainty. Furthermore, their strategic decisions, such as supporting management initiatives or advocating for changes in corporate governance, can directly impact the company’s operational strategies and investment focus.
Key Investors and Their Influence on Bally's Corporation (BALY)
Key Investors and Their Impact on Bally's Corporation (BALY)
As of 2024, Bally's Corporation has attracted significant attention from various institutional investors and funds, reflecting their confidence in the company's growth potential. Notable investors include:
- BlackRock, Inc. - Holds approximately 12.5% of total shares outstanding, making it one of the largest shareholders.
- Vanguard Group, Inc. - Owns about 9.8% of the company’s shares.
- State Street Corporation - Holds around 5.4% of shares, indicating a strong institutional presence.
- Sinclair Broadcast Group - Has a strategic stake through warrants with the potential to acquire additional shares.
Investor Influence
The influence of these investors is notable in several ways:
- Institutional investors like BlackRock and Vanguard often advocate for shareholder-friendly policies, including cost management and strategic acquisitions.
- Activist investors can drive changes in management and operational strategies, influencing stock performance through public campaigns or direct negotiations.
- Investor sentiment can significantly affect stock volatility; for instance, large sell-offs by major shareholders can lead to price declines, while new acquisitions can boost confidence and share prices.
Recent Moves
Recent activities by key investors include:
- In September 2024, BlackRock increased its stake by acquiring an additional 1.2 million shares, signaling confidence in the company's turnaround strategy.
- Vanguard was reported to have sold 400,000 shares in late 2023, reflecting a reevaluation of its investment strategy amidst market volatility.
- Sinclair Broadcast Group exercised warrants to acquire 1.5 million shares at a nominal price, increasing its exposure to the company significantly.
| Investor | Shares Owned | Percentage of Total Shares | Recent Activity |
|---|---|---|---|
| BlackRock, Inc. | 5,081,671 | 12.5% | Acquired 1.2 million shares in September 2024 |
| Vanguard Group, Inc. | 4,000,000 | 9.8% | Sold 400,000 shares in late 2023 |
| State Street Corporation | 2,200,000 | 5.4% | No recent activity reported |
| Sinclair Broadcast Group | 1,500,000 (exercised warrants) | 3.7% | Exercised warrants for 1.5 million shares |
These actions by significant investors underscore their strategic roles in shaping the company's direction and market performance.
Market Impact and Investor Sentiment of Bally's Corporation (BALY)
Market Impact and Investor Sentiment
Investor Sentiment
As of 2024, the current sentiment among major shareholders toward the company is predominantly negative. The net loss for the three months ended September 30, 2024, was $247.9 million, or $(5.10) per diluted share, compared to a loss of $61.8 million, or $(1.15) per diluted share for the same period in 2023.
Recent Market Reactions
The stock market has reacted negatively to significant changes in ownership and investor moves. The total revenue for the three months ended September 30, 2024, decreased by 0.4% to $630.0 million, down from $632.5 million in the same period last year. Additionally, the company reported a substantial adjusted EBITDA of $137.7 million for the three months ended September 30, 2024, a decrease from the previous year's $141.6 million.
Analyst Perspectives
Analysts remain cautious regarding the impact of key investors on the company’s future. The company has seen a significant shift in its operational performance, with a reported net loss of $482.0 million for the nine months ended September 30, 2024, compared to a net income of $90.9 million in the same period of 2023. The anticipated completion of the Bally’s Chicago permanent casino and the associated financing arrangements, which include up to $940 million in construction financing, may provide some optimism among analysts.
| Performance Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $630.0 million | $632.5 million | -0.4% |
| Net Loss | $(247.9 million) | $(61.8 million) | Increase in Loss |
| Adjusted EBITDA | $137.7 million | $141.6 million | -2.6% |
| Net Loss (Nine Months) | $(482.0 million) | $90.9 million | Decrease in Income |
Investor sentiment is compounded by the company’s operational challenges, including the closure of the Tropicana Las Vegas property, which contributed to a revenue decrease of approximately $25.0 million during the second quarter of 2024. Furthermore, general and administrative expenses increased significantly, rising by $43.0 million for Q3 2024.
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Resources:
- Bally's Corporation (BALY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bally's Corporation (BALY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bally's Corporation (BALY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.