Two insiders at Caesars sold large stakes in the company this week at prices below the $31 per share offered by Fertitta Entertainment.
Director Michael Pegram and Chief Legal Officer Ed Quatmann Jr. each sold millions of dollars worth of shares. The sales were executed at average prices of $29.41 or lower, leaving significant upside on the table if the shares had been held until the close of the Fertitta transaction.
Caesars also has the option to consider and negotiate other offers through July 11, meaning those shares could be worth even more if another suitor emerges.
Caesars did not respond to multiple requests for comment before publication. The stock price was flat around noon Eastern Thursday.
Details on Caesars share sales
Quatmann’s Form 4 is relatively straightforward, consisting of a single transaction. He sold 81,566 directly owned shares at an average price of $29.3483 per share for proceeds of nearly $2.4 million. Quatmann still directly owns 18,263 shares.
Pegram’s Form 4 was more complex and included transactions across multiple days. On Monday, Pegram sold all 15,200 shares indirectly owned through one trust at an average price of $29.2001 per share.
He also sold 100,000 indirectly owned shares through AMT Investments LLC over three days:
- 13,973 sold on Monday at an average price of $29.3595 each.
- 36,027 sold on Tuesday at an average price of $29.3072 each.
- 50,000 sold on Wednesday at an average price of $29.4092 each.
In total, Quatmann sold those 115,200 shares for $3.38 million.
How much was left on the table?
At the deal price, Quatmann’s shares would have been worth roughly $2.53 million, about $135,000 more than he realized from this week’s sale.
Pegram would have received roughly $3.57 million, or about $191,200 more than his proceeds from the transactions.
Together, the two insiders left more than $325,000 in potential proceeds on the table.
