What Happened?
Shares of gaming, betting and entertainment company Bally's Corporation (NYSE: BALY) fell 6.9% in the morning session after an analyst at Stifel lowered their price target on the stock, while another firm downgraded their rating. Stifel maintained its "Hold" rating but cut its price target from $12.00 to $10.00, representing a 16.67% decrease. This followed a recent downgrade from Wall Street Zen, which lowered its rating from "hold" to "sell". The negative analyst sentiment comes even as Bally's reported second-quarter revenue of $657.5 million that beat estimates. However, the top-line growth was overshadowed by a substantial loss for the quarter and a "weak performance" financial health score noted by InvestingPro. Adding to investor concerns, the company opted to skip its quarterly earnings call for the third straight time, limiting transparency into its results.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Bally's? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Bally’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 4.3% on the news that the company revealed a new front-of-shirt sponsorship deal with English Premier League club Nottingham Forest. The company's logo will feature on the men's first-team shirts for the 2025/26 season. This partnership marked a significant step for Bally's expansion into the UK market, as Nottingham Forest prepared to compete in its fourth consecutive Premier League campaign. Crucially, the club also qualified for European competition for the first time in three decades, which offered Bally's a major platform to increase its brand profile across Europe.
Bally's is down 50.5% since the beginning of the year, and at $9.64 per share, it is trading 56.3% below its 52-week high of $22.07 from November 2024.
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