Why is Scientific Games Corp (SGMS) Stock Surging? New CFO / VP Appointed and Filipino Gaming Deal Reached

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Scientific Games Corp (NASDAQ:SGMS) shares are trading up quite a bit in later afternoon trading today, as shareholders hope that this is a start of things to come after seeing the stock tumble over the past few weeks.

Scientific Games Corp (NASDAQ:SGMS) today announced the promotion of recently hired Vice President and Corporate Controller, Michael Quartieri. He has now been appointed as Executive VP, Chief Financial Officer and Secretary at the company. This comes on the heels of the company announcing earlier this month that they have reached an agreement with Pacific Online Systems Corp to supply and maintain the electronic lottery system, including 1,500 new machines in the Philippines.

“Michael has a proven track record of achieving results by partnering with operations to drive growth and cash flow, while implementing significant strategic, financial, and operational improvements,” explained Scientific Games CEO Gavin Isaacs. “He has quickly become a key member of our leadership team, and we look forward to Michael’s many contributions in the years ahead.”The stock is up 10.89% or $0.81 following the news, hitting $8.25 per share. About 1.14 million shares traded hands. SGMS has declined 43.25% since May 13, 2015 and is downtrending. It has underperformed the S&P500 by 40.63%.

From a total of 6 analysts covering Scientific Games Corp (NASDAQ:SGMS) stock, 2 rate it a “Buy”, 1 a “Sell”, and 3 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $18 while the lowest target price is $7.50. The mean of all analyst targets is $12 which is 45.45% above today’s ($8.25) stock price. Scientific Games Corp was the topic of 12 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. Janney Capital maintained shares on August 24 with a “Neutral” rating.

The institutional sentiment increased to 1.15 in Q2 2015. It’s up 0.49, from 0.66 in 2015Q2. The ratio increased, as 26 funds sold all their Scientific Games Corp shares they owned while 41 reduced their positions. 25 funds bought stakes while 52 increased their total positions. Institutions now own 60.13 million shares which is 4.50% less than the previous share count of 62.96 million in 2015Q2.

Sylebra Hk Co Ltd holds 25.55% of its total portfolio in Scientific Games Corp, equating to 8.25 million shares. Fine Capital Partners L.P. owns 8.57 million shares representing 8.81% of their total US portfolio. Moreover, Nantahala Capital Management Llc has 4.66% of their total portfolio invested in the company, equating to 3.29 million shares. The North Carolina-based Afton Capital Management Llc has a total of 3.86% of their portfolio invested in the stock. Herring Creek Capital Management Llc, a Connecticut-based fund reported 762,276 shares owned.

Since June 30, 2015, the stock had 0 insider buys, and 1 sale for a total of $222,984 in net activity. Beason Steven sold 13,790 shares worth $222,984.

Scientific Games Corporation is a developer of technology services and products and associated content for the gaming and lottery industries. The company has a market cap of $647.85 million. The Firm operates in three divisions: Gaming, Lottery and Interactive. It currently has negative earnings. Gaming segment designs, develops, makes, markets and distributes gaming machines, VLTs, server gaming machines, casino-management systems hardware and software, table game products, video lottery central monitoring and control systems.

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