International Game Technology (IGT) Bond Prices Fall 0.8% Earnings

An issue of International Game Technology (NYSE:IGT) debt fell 0.8% against its face value during trading on Wednesday following a dissappointing earnings announcement. The debt issue has a 6.5% coupon and will mature on February 15, 2025. The bonds in the issue are now trading at $104.00 and were trading at $104.94 last week. Price moves in a company’s debt in credit markets sometimes anticipate parallel moves in its share price. The company reported $0.15 EPS for the quarter, missing the Zacks’ consensus estimate of $0.27 by ($0.12). International Game Technology had a negative net margin of 22.37% and a positive return on equity of 6.93%. The firm had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.16 billion. During the same period last year, the business posted $0.29 EPS. The company’s revenue was up 4.7% on a year-over-year basis.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 19th. Shareholders of record on Tuesday, June 5th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Monday, June 4th. This represents a $0.80 dividend on an annualized basis and a yield of 2.92%. International Game Technology’s dividend payout ratio (DPR) is presently 52.63%.

A number of equities research analysts have commented on the company. ValuEngine raised International Game Technology from a “buy” rating to a “strong-buy” rating in a research note on Monday, April 2nd. Jefferies Group set a $34.00 price objective on International Game Technology and gave the company a “buy” rating in a research note on Friday, March 9th. Finally, Bank of America set a $32.00 price objective on International Game Technology and gave the company a “buy” rating in a research note on Thursday, March 8th. One investment analyst has rated the stock with a sell rating, five have issued a buy rating and one has given a strong buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $32.40.

Several hedge funds have recently bought and sold shares of the company. TLP Group LLC lifted its holdings in shares of International Game Technology by 29.3% in the first quarter. TLP Group LLC now owns 9,230 shares of the company’s stock valued at $247,000 after purchasing an additional 2,091 shares in the last quarter. Stephens Inc. AR lifted its holdings in shares of International Game Technology by 12.9% in the first quarter. Stephens Inc. AR now owns 23,525 shares of the company’s stock valued at $629,000 after purchasing an additional 2,689 shares in the last quarter. Trexquant Investment LP lifted its holdings in shares of International Game Technology by 11.9% in the first quarter. Trexquant Investment LP now owns 31,924 shares of the company’s stock valued at $853,000 after purchasing an additional 3,403 shares in the last quarter. State Board of Administration of Florida Retirement System lifted its holdings in shares of International Game Technology by 4.2% in the first quarter. State Board of Administration of Florida Retirement System now owns 102,001 shares of the company’s stock valued at $2,726,000 after purchasing an additional 4,072 shares in the last quarter. Finally, Ladenburg Thalmann Financial Services Inc. lifted its holdings in shares of International Game Technology by 35.5% in the fourth quarter. Ladenburg Thalmann Financial Services Inc. now owns 15,774 shares of the company’s stock valued at $418,000 after purchasing an additional 4,130 shares in the last quarter. Institutional investors own 40.45% of the company’s stock.

The company has a quick ratio of 0.75, a current ratio of 0.89 and a debt-to-equity ratio of 3.47. The firm has a market cap of $5.76 billion, a price-to-earnings ratio of 18.00 and a beta of 1.55.

About International Game Technology

International Game Technology PLC operates and provides technology products and services across lotteries, electronic gaming machines, sports betting, and interactive gaming markets worldwide. The company operates through: North America Gaming and Interactive, North America Lottery, International, and Italy segments.

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