Hot Stocks – Scientific Games Corp (NASDAQ:SGMS)
On Monday, Shares of Scientific Games Corp (NASDAQ:SGMS) lost -1.48% to $23.30. During the day, the lowest price at which share is traded was $22.88 and hit the highest price at $24.15. The stock’s institutional ownership stands at 66.60%.
Scientific Games Corporation (SGMS) recently declared that a promotion created by Scientific Games for the Pennsylvania Lottery has set an industry record for the most entries into a promotion offered by a U.S. lottery. More than 15.80M tickets were reached the Secret Santa Second-Chance Drawings promotion for the opportunity to win surprise prizes in addition to cash prizes ranging from $10,000 to $100,000.
Moreover, during the 10-week promotional period, the Pennsylvania Lottery’s VIP Players Club membership grew by 13 percent with 76,000 new registrants.
Drew Svitko, Executive Director, Pennsylvania Lottery, said, “For the third year consecutively, we’ve worked with Scientific Games to launch a second-chance holiday promotion. And while previous years were very booming, our 2016 promotion really engaged our players on multiple levels. For the first time, we included all draw games. This promotion drove consistent engagement with the Lottery and our games during the holidays, eventually assisting us in our overall mission to raise monies to benefit older Pennsylvanians.”
Building on similar holiday-themed second-chance promotions in 2014 and 2015, the record-breaking Secret Santa Second-Chance Drawings promotion featured a mobile-compatible interactive game developed by Scientific Games, which was played online more than two million times during the promotional period, averaging 28,000 plays a day. The Company’s interactive games engage players with popular social game mechanics, social login, social sharing and leaderboards.
Amy Hill, Vice President, Digital Content Studio for Scientific Games, said “We added a fun twist to the promotion this year. Players could select from two second-chance drawings, either a Secret Santa drawing which featured unknown prizes or a Not So Secret Santa drawing which featured prizes from $10,000 to $100,000. Most picked the Secret Santa drawing, proving they love to be surprised.”
The online promotion offered players the opportunity to enter non-winning tickets from six holiday-themed instant games, in addition to winning and non-winning draw-based games (except Raffle). Tracked sales for eligible games during the 10-week promotion reached nearly $40.0M.
Players presented 63 percent of their entries via the Pennsylvania Lottery’s mobile app, also developed by Scientific Games. The app has been installed on more than 466,000 mobile devices since September 2014.
Scientific Games provides games, technology and services to more than 150 lotteries worldwide, counting nearly every North American lottery.
Technical Analysis:
SGMS has market value of $2.11 billion while its EPS was booked as $-4.05 in the last 12 months. The stock has 88.13 million shares outstanding. In the profitability analysis, the company has gross profit margin of 61.60% while net profit margin was -12.30%. Beta value of the company was 2.52; beta is used to measure riskiness of the security.
Analyst recommendation for this stock stands at 2.60.