Caesars Down 21% This Past Year as One Investor Cuts $95 Million Stake Completely
Key Points
HG Vora Capital Management sold 3,500,000 Caesars Entertainment shares in the fourth quarter.
The quarter-end stake value dropped by $94.59 million as a result.
Post-trade, the fund holds zero shares in Caesars Entertainment, with no remaining stake value.
On February 17, 2026, HG Vora Capital Management reported selling its entire 3,500,000-share stake in Caesars Entertainment (NASDAQ:CZR).
What happened
According to an SEC filing dated February 17, 2026, HG Vora Capital Management sold its entire holding of 3,500,000 shares in Caesars Entertainment (NASDAQ:CZR). The quarter-end position value decreased by $94.59 million as a result.
What else to know
- The CZR position was previously 12.8% of the fund's AUM as of the prior quarter.
- Top holdings after the filing:
- NASDAQ: PENN: $92.19 million (34.8% of AUM)
- NASDAQ: DRVN: $77.81 million (29.4% of AUM)
- NYSE: FAF: $41.47 million (15.7% of AUM)
- NYSE: NVRI: $22.40 million (8.5% of AUM)
- NYSE: EQH: $19.06 million (7.2% of AUM)
- As of Tuesday, shares of Caesars Entertainment were priced at $24.80, down 21% over the past year, underperforming the S&P 500’s roughly 16% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $11.49 billion |
| Net income (TTM) | ($502.00 million) |
| Market capitalization | $5.06 billion |
| Price (as of Tuesday) | $24.80 |
Company snapshot
- Caesars Entertainment offers gaming, hospitality, hotel accommodations, dining, entertainment venues, and online sports betting/iGaming services across the United States.
- The company generates revenue through casino operations, hotel stays, food and beverage sales, entertainment events, and digital gaming platforms.
- It serves leisure travelers, gaming enthusiasts, and online bettors.
Caesars Entertainment, Inc. is a leading U.S. gaming and hospitality company, operating over 50 properties and a robust digital gaming platform. The company leverages a diversified portfolio of casinos, hotels, and entertainment venues to capture both in-person and online gaming demand. Its scale, brand recognition, and integrated resort offerings position it as a major player in the consumer cyclical and gaming sectors.
What this transaction means for investors
This exit matters because Caesars was not a small flyer in the portfolio. It was a double-digit weight tied to a cyclical consumer name carrying meaningful leverage.
Operationally, however, the story is mixed. Fourth quarter net revenue ticked up to $2.9 billion from $2.8 billion a year ago, and same-store Adjusted EBITDA improved to $901 million. The real bright spot remains digital, where full-year Adjusted EBITDA more than doubled to $236 million from $117 million, showing that the segment is scaling.
But GAAP tells a tougher story. Caesars posted a $502 million net loss for 2025 and still carries $11.9 billion of debt. Shares are down 21% over the past year despite a broader market rally.
With capital focused onnames like PENN and DRVN, this looks less like a call on gaming broadly and more like a shift toward cleaner balance sheets or sharper catalysts. For long-term investors, Caesars hinges on digital growth translating into durable free cash flow as debt trends lower. Until leverage meaningfully declines, the equity will likely trade like a macro bet, not a compounder.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.