What's Going On With Las Vegas Sands Stock Wednesday?
Portfolio Pulse from Adam Eckert
Las Vegas Sands Corp (NYSE:LVS) stock is trading lower after the announcement that majority shareholder Miriam Adelson and The Miriam Adelson Trust are selling $2 billion worth of stock at $44 per share. The offering is set to close on Dec. 1, and the company will not benefit financially from the sale. Adelson plans to use the proceeds to potentially purchase a majority interest in the Dallas Mavericks. Las Vegas Sands will repurchase approximately 5.78 million shares for $250 million in connection with the offering. LVS shares dropped 3.9% to $45.80 following the news.
November 29, 2023 | 2:08 pm
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NEGATIVE IMPACT
Las Vegas Sands Corp's stock price fell after the news of a $2 billion stock sale by its majority shareholder, with no financial benefit to the company and a repurchase of shares worth $250 million.
The sale of a significant amount of stock by a majority shareholder typically puts downward pressure on the stock price due to increased supply and potential concerns over the shareholder's confidence in the company's future. The repurchase of shares may offset some of the negative impact, but the immediate reaction is a decrease in stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100