Scientific Games (NASDAQ:SGMS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.

According to Zacks, “Scientific Games is likely to be negatively impacted by underperformance of its popular franchise James Bond due to strict state approvals. Moreover, slowing China economy doesn’t bode well for the stock. Further, intensifying competition and high debt level are other headwinds. Shares have underperformed the industry in the past year. Notably, the company has mixed record of earnings surprises in recent quarters. Nevertheless, the company continues to benefit from higher denomination ticket sales and constant innovations. Further, significant growth in core apps including Jackpot Party Social Casino and new lottery system installations are benefiting the company.”

Other equities research analysts have also issued research reports about the stock. Deutsche Bank reaffirmed a “hold” rating and set a $26.00 price target on shares of Scientific Games in a research report on Monday, December 17th. BidaskClub lowered shares of Scientific Games from a “sell” rating to a “strong sell” rating in a report on Tuesday, November 13th. Jefferies Financial Group set a $22.00 target price on shares of Scientific Games and gave the stock a “hold” rating in a report on Friday, December 14th. Susquehanna Bancshares assumed coverage on shares of Scientific Games in a report on Friday, December 7th. They issued a “positive” rating and a $25.00 target price for the company. Finally, ValuEngine raised shares of Scientific Games from a “sell” rating to a “hold” rating in a report on Thursday, November 8th. Three investment analysts have rated the stock with a sell rating, four have given a hold rating and four have assigned a buy rating to the company’s stock. Scientific Games presently has an average rating of “Hold” and an average target price of $40.67.

Shares of NASDAQ SGMS traded down $0.08 during midday trading on Monday, hitting $20.94. 17,608 shares of the company’s stock traded hands, compared to its average volume of 1,666,221. Scientific Games has a 1 year low of $14.79 and a 1 year high of $62.80. The firm has a market capitalization of $1.87 billion, a P/E ratio of -9.38, a PEG ratio of 3.98 and a beta of 2.05.

Scientific Games (NASDAQ:SGMS) last released its quarterly earnings results on Thursday, November 8th. The technology company reported ($0.14) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.18) by $0.04. The business had revenue of $821.00 million for the quarter, compared to analysts’ expectations of $828.92 million. During the same period in the previous year, the company earned ($0.66) EPS. Scientific Games’s revenue for the quarter was up 6.8% compared to the same quarter last year. As a group, analysts forecast that Scientific Games will post -0.7 EPS for the current fiscal year.

In other Scientific Games news, Director Ronald O. Perelman purchased 300,000 shares of the company’s stock in a transaction on Friday, December 27th. The stock was acquired at an average cost of $16.93 per share, for a total transaction of $5,079,000.00. Following the purchase, the director now directly owns 88,032 shares of the company’s stock, valued at approximately $1,490,381.76. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Ronald O. Perelman purchased 200,000 shares of the company’s stock in a transaction on Monday, December 24th. The stock was acquired at an average price of $16.20 per share, with a total value of $3,240,000.00. Following the completion of the purchase, the director now directly owns 88,032 shares in the company, valued at $1,426,118.40. The disclosure for this purchase can be found here. Insiders acquired a total of 900,000 shares of company stock valued at $14,921,000 over the last 90 days. 40.48% of the stock is currently owned by corporate insiders.

Hedge funds have recently bought and sold shares of the business. Waratah Capital Advisors Ltd. bought a new position in Scientific Games in the 3rd quarter worth approximately $305,000. Cubist Systematic Strategies LLC boosted its stake in Scientific Games by 136.6% in the 2nd quarter. Cubist Systematic Strategies LLC now owns 32,125 shares of the technology company’s stock worth $1,579,000 after purchasing an additional 18,548 shares during the period. Schwab Charles Investment Management Inc. boosted its stake in Scientific Games by 3.3% in the 2nd quarter. Schwab Charles Investment Management Inc. now owns 300,551 shares of the technology company’s stock worth $14,773,000 after purchasing an additional 9,491 shares during the period. American International Group Inc. boosted its stake in Scientific Games by 3.1% in the 3rd quarter. American International Group Inc. now owns 146,985 shares of the technology company’s stock worth $3,733,000 after purchasing an additional 4,420 shares during the period. Finally, Nomura Holdings Inc. bought a new position in Scientific Games in the 2nd quarter worth approximately $364,000. Institutional investors and hedge funds own 66.20% of the company’s stock.

About Scientific Games

Scientific Games Corporation develops technology-based products and services, and related content for the gaming, lottery, and interactive gaming industries worldwide. The company's Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals (VLTs), conversion game kits, and spare parts; slot, casino, and table-management systems; table products, including shufflers; and perpetual licenses to proprietary table games.

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