The Crown Resorts Ltd (ASX: CWN) share price has hit some turbulence recently on the back of news that its founder's son and major shareholder James Packer had agreed to sell 19.99% of his stake in Crown to fellow casino magnate Lawrence Ho for $1.76 billion or around $13 per share.
Moreover, just yesterday rival casino operator Star Entertainment Group Ltd (ASX: SGR) flagged that softer-than-expected revenue growth over the second half of FY 2019 meant that it was downgrading its full year EBITDA guidance to below that achieved in FY 2018. In so doing it also blamed falling VIP or high roller revenues which is an area Crown Melbourne is also leveraged too.
As a result of Star's update the Crown share price gave up 1.7% yesterday and is down a little further today to change hands for just $12.11 per share, which is only a little above the $12 valuation that financial news wires are reporting Macquarie Group Ltd (ASX: MQG) has slapped on the stock.
If Macquarie Group is on the money in its assessment then today's buyers will have to rely on Crown's dividend (60 cents per on a trailing basis) to deliver most of its return over the year ahead.
