Reasons for Ronald Perelman’s Share Buy of Scientific Games Corp (NASDAQ:SGMS)’s Stock

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Reasons for Ronald Perelman Share Buy of Scientific Games Corp Stock-Transactions

Ronald Perelman Insider Buy Transaction

A well-grounded and judicious act was made by the director of Scientific Games Corp (NASDAQ:SGMS) , Mr. Ronald Perelman, 2 days ago, when he acquired a significant amount of shares – 300,000, totalling $2.41 million USD , based on an average price of $8.0 for each one share. Presently, Ronald Perelman owns a total of 34.61 million shares or 41.94 % of the company’s market capitalization (total value of the shares outstanding). It is an important deal and hence it will very likely not remain disregarded.

Scientific Games Corp Stock Rating, Sentiment and Fundamentals

In our view, this investment made by Ronald Perelman, shows his trust and confidence in the Company’s stock price and future. In addition fourteen expert stock analysts are very high on Scientific Games Corp, expecting it to announce EPS of $-11.13 for 2015 at minimum. This means that the company’s Price/Earnings ratio will be NaN and the anticipated growth rate year-on-year -19.20%.

Rating & Sentiment
PsychSignal Social:SELL
Analysts Rating:BUY
Hedge Funds Sentiment:SELL
Stock Fundamentals
Earnings + FCF Trend:SELL
Sector/Industry Macro:BULLISH
Valuation Models:-
Technical Analysis
OctaFinance Rating*:NEUTRAL

* Read How Our Stock Ratings System Works

The stock price of Scientific Games Corp has dropped 34.32 % compared to the price last 200 days. And this down trend looks set to continue. In accordance with our well-know stocks momentum model as displayed on the chart below and considering the fact that Ronald Perelman has invested such a substantial sum, we rate this stock “NEUTRAL”.

Price Chart of Scientific Games Corp NASDAQ:SGMS Stock

Reasons for Ronald Perelman Share Buy of Scientific Games Corp Stock-Stock-Price-Chart

Source: RightEdgeSystems, Yahoo Split & Dividend Adjusted Data and OctaFinance Interpretations

As Felix Zulauf, a stock market legend, noted, that the highest risk-adjusted returns are made through a combination of fundamental & technical analysis.” This is definitely not the case with Scientific Games Corp.

Hedge Funds Ownership

As of Q2 2015, 137 institutional players own Scientific Games Corp. The institutional ownership of Scientific Games Corp’s stock in Q2 2015 is high, at 73.01 % of the shares outstanding. They increased by 4.46 million the total shares they hold. As of that quarter these hedge funds owned 62.96 million shares. A total of 20 funds opened new positions in Scientific Games Corp and 39 increased their holdings. There were 28 funds that closed their positions and 62 that reduced them.

Eight [HF3951] are bullish the stock and have it in their Top 10. Some of these are: Nantahala Capital Management Llc, Plymouth Lane Capital Management Llc, Afton Capital Management Llc, Fine Capital Partners L.P., Hap Trading Llc, Sylebra Hk Co Ltd, Park West Asset Management Llc, Wingspan Investment Management Lp.


Wilmot B. Harkey And Daniel Mack’s Nantahala Capital Management Llc is the most bullish hedge fund on Scientific Games Corp, with ownership of 2.31 million shares as of Q2 2015 for 5.26% of the fund’s portfolio. Plymouth Lane Capital Management Llc is another bullish player possessing 500,000 shares of the company or 3.86% of their stocks portfolio. Further Afton Capital Management Llc have 6.07% of their stock portfolio invested in the company for 150,000 shares. The New York-based fund Fine Capital Partners L.P. disclosed it had purchased a stake worth 10.20% of the fund’s stock portfolio in Scientific Games Corp. Hap Trading Llc is also very upbeat about the firm, owning 2.28 million shares or 2.14% of their stock portfolio.

Scientific Games Corp NASDAQ:SGMS Company Profile

Scientific Games Corporation is a developer of technology-based products and services and associated content for the gaming and lottery industries. The Company operates in three segments: Gaming, Lottery and Interactive. Gaming segment designs, develops, manufactures, markets and distributes gaming machines, VLTs, server-based gaming machines, casino-management systems hardware and software, table game products, video lottery central monitoring and control systems. Lottery segment manufactures and sells instant games, as well as the provision of services, such as game design, sales and marketing support, specialty games and promotions, warehousing, as well as instant game category management. Interactive segment offers play-for-fun social games on Facebook, GooglePlay for Android devices, Apple’s iOS platform, Kindle platform and Microsoft Windows 8. Its brands include MONOPOLY, GREASE, Jackpot Party Progressive, AMC-THE WALKING DEAD, HARLEY-DAVIDSON and LOTERIA, among others.

Company Website: Scientific Games Corp

Scientific Games Corp was incorporated in Delaware on 1984-07-02. Currently its market cap is: $671.74 million and it has 82.52 million shares outstanding. As of writing it has 73.07% shareholders and the institutional ownership is 73.07%. The firm has 9000 employees. The stock closed at $7.79 yesterday and it had average 2 days volume of 497182 shares. It is up from the 30 days average shares volume of 307625. Scientific Games Corp has a 52weeks low of $7.51 and a 52weeks high of $17.12. The stock price is below the 200 days simple moving average.

Ronald Perelman is also Chairman of Revlon Inc /De/, director of Siga Technologies Inc, M & F Worldwide Corp, Panavision Inc, 10 percent owner of Vtv Therapeutics Inc., Nephros Inc.

* By SGMS Acquisition Corp. – SGMS Acquisition Two Corp. – RLX Holdings Two LLC and MacAndrews & Forbes Incorporated. Mr. Perelman is the sole stockholder of MacAndrews & Forbes Incorporated – which is the sole stockholder of each of SGMS Acquisition Corporation – SGMS Acquisition Two Corporation and RLX Holdings Two LLC.

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