Muktesh Pant, a director at Las Vegas Sands (LVS), recently bought 23,000 shares. The buy is an initial stake for the director, and came to a cost of just under $1,000,000.
This marks the first insider buy at LVS over the past two years. There have been a few massive insider sales, including the company CEO, who sold 100% of his stake last November at higher prices. And a major shareholder sold off nearly $2 billion of shares in late 2023.
Overall, Las Vegas Sands insiders own 54.1% of shares.
The hotel and casino operator is down 14% over the past year, far lagging the stock market’s rally higher. Investors have been concerned about a slowdown in consumer spending, and LVS has had revenues dip 1% in the past year and earnings growth slowed by 15%.
Even with that slowdown, Las Vegas Sands trades at 16 times forward earnings, and continues to bring in strong cash flow.
Action to take: Shares have been rangebound over the past year, and are now trending higher from the lower end of their range. Buyers could see a move to the $50s from here for a low double-digit return in the coming months.
Plus at current prices, Las Vegas Sands also pays a 2.3% dividend.
For traders, the June $50 calls, last trading for about $1.30, stand a strong chance of moving in-the-money. Traders could see high-double-digit returns on such a move.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.