Why Golden Entertainment (GDEN) Shares Are Getting Obliterated Today

What Happened?

Shares of casino, tavern, and slot machine operator Golden Entertainment (NASDAQ:GDEN) fell 7.7% in the morning session after Truist Securities downgraded the company's stock. 

The investment firm lowered its rating on Golden Entertainment to "Hold" from "Buy" and cut its price target on the shares to $34 from $36. The downgrade was prompted by anticipated weakness at the company's Stratosphere property, leading Truist to reduce its second-quarter EBITDA estimates. EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a key measure of a company's operating performance. Truist analysts noted that instead of seeing expected growth in 2025, they now forecast a 4% decline in the company's full-year EBITDA. This revision places their estimate 2% below the consensus on Wall Street.

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What Is The Market Telling Us

Golden Entertainment’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Golden Entertainment is down 4.9% since the beginning of the year, and at $29.60 per share, it is trading 13.2% below its 52-week high of $34.09 from February 2025. Investors who bought $1,000 worth of Golden Entertainment’s shares 5 years ago would now be looking at an investment worth $3,203.

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