Las Vegas Sands (NYSE: LVS) is a well-established casino and resort corporation based in Las Vegas, Nevada. The company operates integrated resorts that include retail, gaming, accommodations, and entertainment. Since its inception in 1988, the organization has risen to prominence as an industry leader.
LVS Stock Faced A $2 Billion Worth Of Share Sell-off
Recent market volatility has had an effect on shares of Las Vegas Sands (LVS), precipitated by the disclosure that major shareholders of the company, Miriam Adelson and her family, intend to divest $2 billion worth of stock. The purpose of this resolution is to streamline the process of obtaining a controlling interest in the Dallas Mavericks NBA franchise from the tycoon Mark Cuban.
Las Vegas Sands disclosed in a prospectus filed with the SEC that the Adelsons' stock sale would encompass 41,186,161 shares and be priced at $48.56 per share. This transaction represents an estimated 10% of the Adelsons' total equity in the organization.
The organization announced that it had received notification that the sales proceeds would be applied towards "financing the acquisition of a majority stake in a professional sports franchise." According to reports, this transaction will net Mark Cuban $3.5 billion and allow him to retain a substantial ownership interest in the Dallas Mavericks, which he purchased for $285 million in 2000.
In light of recent market developments, Las Vegas Sands acknowledges that the value of its shares has decreased by approximately 8% for the year 2023. Consistent with its dedication to enhancing shareholder value and managing its capital structure, the organization continues to implement strategic measures.
Las Vegas Sands Stock (LVS) Technical Analysis
In the daily chart of LVS stock, ongoing selling pressure is visible as the latest price formed an ascending channel breakout with a daily close below the channel support. Moreover, there are multiple bearish candlesticks below the 20-day EMA.
Considering the fundamental pressure, LVS stock could have a higher possibility of extending the loss in the coming days. Therefore, the price is more likely to reach the 39.62 level, which is the 161.8% Fibonacci Extension level from the 47.12 low to the 50.46 high.
On the bullish side, a deeper bearish correction and a bullish rejection from the 43.77 to 39.60 area could be a long opportunity. In that case, a bull run might appear, where the main aim is to test the 50.47 level.