Zacks Investment Research downgraded shares of Scientific Games (NASDAQ:SGMS) from a hold rating to a sell rating in a research report sent to investors on Friday.

According to Zacks, “Scientific Games with its innovative product pipeline enjoys a premium position in the gaming equipment space, as well as in the instant ticket and online lottery markets. The company’s top line continues to be driven by robust performance from the gaming and interactive businesses. Scientific Games aims at reducing costs and optimizing its operational structure to drive bottom line growth going ahead. Moreover, acquisitions like Tech Art and NYX Gaming will broaden its product pipeline in digital gaming and online lottery markets. However, leveraged balance sheet that results in significant interest expense is hurting profitability. Additionally, intense competition and unfavorable foreign exchange are major headwinds. The company has mixed record of earnings surprises in recent quarters.”

Other analysts have also issued research reports about the company. BidaskClub lowered Scientific Games from a buy rating to a hold rating in a report on Saturday, February 3rd. Stifel Nicolaus reiterated a hold rating and set a $55.00 price objective on shares of Scientific Games in a report on Friday, February 2nd. One investment analyst has rated the stock with a sell rating, four have given a hold rating and two have assigned a buy rating to the stock. Scientific Games has an average rating of Hold and a consensus target price of $45.20.

Shares of Scientific Games (SGMS) opened at $41.95 on Friday. Scientific Games has a twelve month low of $19.65 and a twelve month high of $56.45. The company has a current ratio of 1.83, a quick ratio of 1.45 and a debt-to-equity ratio of -4.07. The company has a market capitalization of $3,760.00, a price-to-earnings ratio of -11.99 and a beta of 2.50.

In other news, Director Richard M. Haddrill sold 8,000 shares of the stock in a transaction on Thursday, December 21st. The stock was sold at an average price of $51.28, for a total transaction of $410,240.00. Following the completion of the sale, the director now owns 136,542 shares in the company, valued at approximately $7,001,873.76. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 40.61% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ameritas Investment Partners Inc. increased its position in shares of Scientific Games by 13.5% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 4,673 shares of the technology company’s stock valued at $122,000 after acquiring an additional 556 shares during the period. IFP Advisors Inc acquired a new position in shares of Scientific Games in the 4th quarter valued at $138,000. First Quadrant L P CA acquired a new position in shares of Scientific Games in the 3rd quarter valued at $139,000. Zurcher Kantonalbank Zurich Cantonalbank increased its position in shares of Scientific Games by 152.7% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,045 shares of the technology company’s stock valued at $156,000 after acquiring an additional 1,840 shares during the period. Finally, LS Investment Advisors LLC increased its position in shares of Scientific Games by 42.2% in the 3rd quarter. LS Investment Advisors LLC now owns 3,940 shares of the technology company’s stock valued at $181,000 after acquiring an additional 1,170 shares during the period. 64.33% of the stock is currently owned by hedge funds and other institutional investors.

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Scientific Games Company Profile

Scientific Games Corporation is a developer of technology-based products and services and associated content for the gaming, lottery and interactive gaming industries. Its segments include Gaming, Lottery and Interactive. Its portfolio includes gaming machines and game content, casino management systems, table game products and services, instant and draw-based lottery games, server-based gaming and lottery systems, sports betting technology, lottery content and services, loyalty and rewards programs, interactive gaming and social casino solutions.

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