TLDR
- Barrow Hanley Mewhinney & Strauss expanded its LVS holdings by 43.8%, acquiring an additional 1.66 million shares valued at approximately $293 million
- Schroder Investment Management Group dramatically increased its position by 4,504%, bringing total holdings to over 1 million shares
- Q4 earnings surpassed expectations with $0.85 EPS versus the $0.77 forecast, while revenue climbed 26% year-over-year to reach $3.65 billion
- CEO Robert Goldstein divested approximately 1.2 million shares in December at $66.68 per share, totaling close to $80 million
- The company increased its quarterly dividend from $0.25 to $0.30 per share, while analysts maintain a “Moderate Buy” consensus with an average price target of $68.55
Shares of Las Vegas Sands (LVS) began Wednesday’s trading session at $54.25, registering a 0.6% gain. The current price remains significantly beneath the 52-week peak of $70.45, and sits below both the 50-day moving average of $58.26 and the 200-day moving average of $58.99.
Major institutional activity during Q3 revealed substantial confidence in the casino operator. Barrow Hanley Mewhinney & Strauss expanded its ownership by 43.8%, acquiring 1,660,823 additional shares. The investment firm’s total position now comprises 5,454,013 shares with an estimated value of $293 million, representing approximately 0.81% of the company.
Schroder Investment Management Group executed an even more dramatic repositioning. The firm expanded its stake by an eye-popping 4,504.2%, purchasing 1,006,463 shares to bring total holdings to 1,028,808 shares worth $55.3 million. This represents an almost complete reconstruction of their LVS exposure.
Additional institutional investors joined the buying spree during the quarter. Smartleaf Asset Management expanded its position by 549.5%. MAI Capital Management registered a 78.4% increase. Westside Investment Management boosted holdings by 48.0%. Combined institutional and hedge fund ownership currently represents 39.16% of outstanding shares.
Regarding financial performance, LVS exceeded expectations in Q4 with strong results. The company reported earnings per share of $0.85, surpassing the analyst consensus of $0.77 by $0.08. Revenue reached $3.65 billion, comfortably beating the $3.33 billion forecast.
The revenue figure represented a 26% increase compared to the same period last year. Earnings per share also showed significant improvement — the company had reported only $0.54 per share during Q4 of the previous year. The company achieved a return on equity of 91.40% alongside a net margin of 12.50%.
Dividend Raised
LVS announced an increase to its quarterly dividend from $0.25 to $0.30 per share. This translates to an annualized payment of $1.20, providing a 2.2% yield based on current market prices. The company distributed the dividend on February 18th. The current payout ratio stands at 51.28%.
Despite the positive earnings performance, corporate insiders reduced positions in December. CEO Robert Goldstein sold 1,198,650 shares on December 17th at an average price of $66.68, generating approximately $80 million in proceeds. Major shareholder Miriam Adelson also divested 77,991 shares at $67.56 one day earlier. Throughout the past 90 days, insiders collectively sold 2,460,896 shares valued at $164.2 million.
Insider ownership currently accounts for 1.20% of total outstanding stock.
Analyst Targets
Wall Street sentiment toward the stock remains generally optimistic. Twelve analysts assign LVS a Buy rating, while six recommend Hold. The consensus price target sits at $68.55 — representing approximately 26% upside from current trading levels.
Goldman Sachs reduced its target from $80 to $73 in January while maintaining a Buy rating. Argus lowered its target from $80 to $60, also keeping Buy. HSBC increased its target from $67.50 to $73.00. Jefferies adjusted from $78 to $72 while maintaining Buy.
Morgan Stanley established a $66 target in February. Citigroup raised its target to $76.75 in December with a Buy rating.
Analyst consensus projects LVS will deliver $2.60 in EPS for the complete fiscal year.
