Caesars Entertainment Inc (NASDAQ:CZR) shares are continuing to climb amid its takeover chatter, including interest from billionaire Tilman Fertitta and early discussions about a possible management‑led buyout.
Takeover Interest Fuels The Move
According to the Financial Times, Caesars is reviewing several potential offers, including one from Fertitta Entertainment, the owner of the Golden Nugget casino brand. The company is also exploring an internal option that would keep leadership involved through a management‑led buyout.
Improving Fundamentals Add To The Appeal
The takeover buzz comes at a time when Caesars has been highlighting improving operating metrics. The company recently reported quarterly revenue of $2.92 billion, slightly above Wall Street expectations and up from $2.8 billion a year earlier.
Same‑store adjusted EBITDA rose to $901 million, up from $882 million, underscoring the cash‑generation profile that matters to potential buyers evaluating leverage and deal structure.
One of the standout drivers has been Caesars Digital, which posted record adjusted EBITDA of $85 million, a sharp jump from $20 million in the prior‑year quarter.
Mixed Technical Signals With Cautious Upside Bias
Caesars Entertainment is currently positioned above its key moving averages, which suggests a potential bullish setup for traders. However, the stock’s longer-term trend remains under pressure, indicated by the bearish positioning of the 20-day SMA below the 50-day SMA and the 50-day SMA below the 200-day SMA.
The RSI is currently at 63.92, which is in neutral territory but approaching overbought conditions, indicating that while there is some upward momentum, traders should be cautious as the stock could face resistance if it continues to rise. MACD is above its signal line, signaling bullish momentum for Caesars. This suggests that the stock may have the potential for further upward movement.
Key support is at $23.00, while resistance is at $25.50. If the stock tests the support level and holds, it could indicate a continuation of the current trend, but a breach below could signal further downside.
Caesars’ stock has seen a 12-month performance decline of 24.41%, highlighting a challenging longer-term trend. This significant drop suggests that traders should remain vigilant and consider the broader market conditions impacting the stock.
Currently, the stock is trading at 39.1% of its 52-week range, indicating it’s closer to the lower end of that range. This positioning suggests that there may be limited upside potential unless a strong reversal occurs.
CZR Price Action: Caesars shares were up 4.20% at $25.78 at the time of publication on Friday, according to Benzinga Pro.
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