TLDR
- Pzena Investment Management spent US$112.22 million on two share purchases in Galaxy Entertainment Group
- The first purchase on May 14 raised Pzena’s stake from 4.89% to 5.01%; the second on June 16 pushed it to 6.27%
- Galaxy Entertainment’s share price hit a calendar-year low of HKD29.82 on Monday
- Morgan Stanley said Macau gaming stocks are underperforming the Hang Seng Index in 2026
- The bank cut its 2026 growth forecasts for Macau gross gaming revenue and EBITDA
Pzena Buys Into Galaxy Entertainment While Macau Casino Stocks Slide
US investment firm Pzena Investment Management has increased its stake in Galaxy Entertainment Group, one of Macau’s largest casino operators. The firm spent a combined HKD879.77 million — roughly US$112.22 million — across two separate share purchases.
The moves were disclosed through filings with the Hong Kong Stock Exchange. The filings classify Pzena as a substantial shareholder of Galaxy Entertainment.
The Two Transactions
The first purchase took place on May 14. Pzena spent HKD184.16 million at an average price of HKD33.81 per share, lifting its stake from 4.89% to 5.01%.
The second, larger transaction came on June 16. Pzena paid HKD695.61 million at an average of HKD30.51 per share, raising its position from 5.75% to 6.27%.
Together, the two trades represent a steady build-up in exposure to Macau’s gaming sector over roughly five weeks.
Stock Hits Year-to-Date Low
Galaxy Entertainment’s share price closed at HKD29.82 on Monday, its lowest point of the calendar year. That level sits below both average purchase prices from Pzena’s recent transactions.
The price drop reflects broader pressure on Macau-listed gaming stocks. The sector has been trailing the wider Hang Seng Index for much of 2026.
Morgan Stanley flagged the underperformance in a note released on Sunday. The bank said weaker revenue expectations for June and July are weighing on investor sentiment across Macau gaming names.
Morgan Stanley also cut its full-year 2026 forecasts for Macau gross gaming revenue and EBITDA. The bank described gaming stocks as “rolling at the bottom” for now.
Buying Into a Down Market
Pzena’s purchases stand out because they happened while the stock was already declining. The firm was buying at prices between HKD30.51 and HKD33.81, yet the share price has since fallen further to HKD29.82.
This type of activity — adding to a position as a stock falls — is sometimes called averaging down. It suggests the investor sees value at current price levels despite the near-term pressure.
The filings do not include any commentary from Pzena on its reasons for the purchases.
Galaxy Entertainment is one of the major licensed casino operators in Macau. It runs multiple casino and resort properties in the territory.
Sector Under Pressure
Morgan Stanley’s note pointed to revised EBITDA forecasts for Macau-related firms as a key reason for the sector’s poor performance this year. The bank did not name a single catalyst but pointed to soft GGR trends in the coming months.
The outlook suggests Macau gaming operators could face a challenging stretch through at least the end of summer 2026. Galaxy Entertainment, with its shares at a yearly low, sits at the center of that story.
