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Bally's Corporation (BALY) stock soared to a 52-week high of $18.18, marking a significant milestone for the gaming and hospitality company. With a market capitalization of $737 million, InvestingPro analysis indicates the stock is currently trading at Fair Value. This peak reflects a robust period of growth for Bally's, which has seen its stock price surge by an impressive 57.24% over the past year. While management has been actively buying back shares, investors should note the company's significant debt burden, with a debt-to-equity ratio of 21.8x and an EV/EBITDA multiple of 23x. Investors have shown increased confidence in the company's strategic expansions and its ability to capitalize on the burgeoning sports betting and online gaming markets. The 52-week high serves as a testament to Bally's strong performance and potential for continued success in the competitive entertainment industry. InvestingPro subscribers have access to 8 additional key insights about BALY's financial health and growth prospects.
In other recent news, Bally's Corporation has seen significant developments. The casino-entertainment company has reported its third-quarter 2024 earnings, with management highlighting forward-looking statements and non-GAAP financial measures. However, they acknowledged potential financial uncertainties due to the unpredictability of non-recurring expenses and one-time costs.
Bally's has also been active in merger activities. Stockholders have given the green light to a merger agreement with SG Parent LLC, and another with The Queen Casino (EPA:CASP) & Entertainment Inc. These strategic decisions are expected to close in the first quarter and first half of 2025 respectively, pending regulatory approvals and standard closing conditions.
Furthermore, Bally's has offered its shareholders a new election period to retain shares post-merger instead of receiving cash merger consideration. As of the original election deadline, approximately 17.5 million shares had been elected to roll over. The completion of the merger is anticipated for the first quarter of 2025, subject to regulatory approvals and other customary closing conditions.
In analyst news, no upgrades or downgrades were reported for Bally's Corporation, with attention primarily on the upcoming Casino Queen merger. These recent developments underscore Bally's Corporation's proactive approach to managing potential risks while pursuing its expansion plans.
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