Weekly Market Movers: Advertising Agencies on Top, Resorts & Casinos Drop

October 7, 2019

During the week of Sep 30 – Oct 6, there was a lot of activity in the media sector. The Advertising Agencies industry recovered and made a significant jump in sentiment of 43 points. Outliers in the industry were Next Fifteen Communications and Dentsu which led the category, recording the highest aggregated sentiment scores.

Next Fifteen Communications announced their acquisition of the healthcare communications firm Health Unlimited in a deal worth USD 27.7 million. This M&A event boosted the sentiment for Next Fifteen Communications, reaching a positive score of 39 points. 

Meanwhile, Dentsu Group was in the spotlight at Spikes Asia 2019, the largest advertising communications festival in the APAC region. The agency collected 49 awards, including the Grand Prix in both Digital Craft and Radio and Audio Categories for Dentsu Inc.

On the other hand, ‘Resorts and Casinos’ was the worst performing industry in the same time period as the sentiment score dropped by -57 points. Eldorado Resorts Inc. and Full House Resorts were amongst the sentiment losers for the category.

Last week, Stockholders were reminded that a class action had been filed against Eldorado Resorts Inc. Many of its officers received subpoenas from the SEC in May 2019 in connection with an investigation, despite the company’s continuous assurances around legal compliance issues. Eldorado Resorts’ shares fell 8% following the news of a class action against the company.

At the same time, Full House Resorts’ rating was lowered from buy to hold by ValuEngine. Zacks Investment Research also cut the company shares to a strong sell rating. In its latest earnings release, Full House Resorts had a negative net margin of 1.23% of a negative return on equity of 3.48%.

Notes:

1 Companies that contributed most to last week’s industry sentiment change.

2  Top trending event related to the respective company.

3  Weekly aggregated company sentiment score (ranging from -100 to +100).

4  Weekly aggregated company attention buzz (the percentage by which the number of news, blogs and tweets about an asset deviates from normal attention).

*Industry name and classification as per Morning Star

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