Caesars Stock Has Tanked 27%, but One Fund Just Built a $74 Million Position
Key Points
Cooper Creek initiated a new position in Caesars Entertainment during the fourth quarter, buying up 3,170,216 shares.
The quarter-end position value increased by $74.15 million as a result.
The stake represents 3.35% of fund AUM, making it one of the larger holdings in this portfolio.
On February 17, 2026, Cooper Creek Partners Management acquired a new stake in Caesars Entertainment (NASDAQ:CZR), purchasing 3,170,216 shares worth $74.15 million in the fourth quarter.
What happened
According to an SEC filing dated February 17, 2026, Cooper Creek Partners Management reported acquiring 3,170,216 shares of Caesars Entertainment during the fourth quarter. The position was valued at $74.15 million at quarter’s end.
What else to know
- Top holdings after the filing:
- NYSE:CXW: $112.68 million (5.3% of AUM)
- NYSE:GXO: $90.06 million (4.3% of AUM)
- NYSE:AAP: $75.75 million (3.6% of AUM)
- NYSE:GEO: $75.00 million (3.6% of AUM)
- NASDAQ:CZR: $74.15 million (3.5% of AUM)
- As of Monday, CZR shares were priced at $24.25, down about 27% over the past year and well underperforming the S&P 500, which is instead up about 17%.
Company overview
| Metric | Value |
|---|---|
| Price (as of Monday) | $24.25 |
| Market capitalization | $5 billion |
| Revenue (TTM) | $11.49 billion |
| Net income (TTM) | ($502.00 million) |
Company snapshot
- Caesars Entertainment offers casino gaming, hotel accommodations, dining, entertainment venues, and online sports betting and iGaming services across a portfolio of domestic properties.
- The firm generates revenue primarily through gaming operations, hospitality services, and ancillary offerings such as food, beverage, and retail sales.
- It targets leisure and business travelers, gaming enthusiasts, and online sports bettors in the United States.
Caesars Entertainment is a leading U.S. gaming and hospitality operator with a diversified portfolio of casinos, hotels, and entertainment venues. The company leverages its established brands and broad geographic footprint to attract a wide range of customers, from traditional casino patrons to digital gaming users. Caesars' scale and integration of physical and online gaming platforms position it competitively in the evolving leisure and entertainment market.
What this transaction means for investors
The Caesars story has shifted toward digital profitability and free cash flow inflection, even as headline net losses obscure the underlying trajectory.
Fourth-quarter results posted earlier this month and showed that net revenue rose to $2.9 billion from $2.8 billion a year earlier, while same-store Adjusted EBITDA improved to $901 million. The real swing factor was Caesars Digital, which delivered $85 million in quarterly Adjusted EBITDA versus $20 million last year. For the full year, digital EBITDA more than doubled to $236 million on $11.5 billion in total revenue.
GAAP earnings still show a $502 million annual net loss, and debt stands at $11.9 billion. But management expects lower capex and declining cash interest expense in 2026, targeting stronger free cash flow to reduce leverage.
Relative to other holdings skewed toward corrections facilities and logistics operators, this adds consumer cyclicality and digital optionality. For long-term investors, the thesis rests on debt paydown and sustained digital growth. If those align, today’s valuation could look conservative.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends GXO Logistics. The Motley Fool has a disclosure policy.