MGM Resorts International (NYSE:MGM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday.
According to Zacks, “MGM Resorts reported break-even adjusted earnings in the fourth quarter of 2017, missing the Zacks Consensus Estimate of 11 cents. Total revenues of $2.6 billion topped the consensus mark by 4% and rose 5.5% year over year. Higher revenues from its Las Vegas operations and MGM China is encouraging. In fact, MGM Resorts’ shares have outperformed the industry in the last three months. Earnings estimates for 2018 have also gone up over the last 60 days, reflecting analysts’ confidence on the stock. However, increasing competition and high-debt burden remain significant headwinds for the company. In the quarter, Las Vegas performance was slightly below expectations with adjusted EBITDA down 4.7% year-over-year. Also, higher costs associated with Monte Carlo construction can weigh on the company’s margins, going forward. Even then, strong portfolio, new resort openings and focus on non-gaming activities bode well.”
Other research analysts also recently issued reports about the stock. JPMorgan Chase & Co. boosted their price objective on shares of MGM Resorts International from $39.00 to $40.00 and gave the company an “overweight” rating in a research report on Wednesday, November 1st. Stifel Nicolaus reissued a “hold” rating and set a $37.00 price objective (up from $36.00) on shares of MGM Resorts International in a research report on Wednesday. Bank of America boosted their target price on shares of MGM Resorts International from $38.00 to $39.00 and gave the company a “buy” rating in a report on Wednesday. Jefferies Group began coverage on shares of MGM Resorts International in a report on Thursday, January 18th. They set a “buy” rating and a $43.00 target price on the stock. Finally, Nomura dropped their target price on shares of MGM Resorts International from $38.00 to $37.00 and set a “buy” rating on the stock in a report on Wednesday, November 1st. Five analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. The company has a consensus rating of “Buy” and a consensus target price of $37.94.
MGM Resorts International (NYSE:MGM) opened at $35.38 on Friday. The company has a current ratio of 0.77, a quick ratio of 0.98 and a debt-to-equity ratio of 1.10. The stock has a market cap of $20,034.85, a price-to-earnings ratio of 10.41, a price-to-earnings-growth ratio of 1.63 and a beta of 1.44. MGM Resorts International has a 1 year low of $25.15 and a 1 year high of $38.41.
MGM Resorts International (NYSE:MGM) last issued its quarterly earnings data on Tuesday, February 20th. The company reported $0.11 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.07 by $0.04. The business had revenue of $2.60 billion for the quarter, compared to the consensus estimate of $2.51 billion. MGM Resorts International had a net margin of 17.92% and a return on equity of 5.78%. The company’s quarterly revenue was up 5.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.11 EPS. equities research analysts predict that MGM Resorts International will post 1.39 earnings per share for the current year.
In other news, Director Sean Charland purchased 25,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 6th. The shares were bought at an average price of $22.50 per share, for a total transaction of $562,500.00. Also, insider Phyllis James sold 19,149 shares of the company’s stock in a transaction dated Wednesday, November 29th. The stock was sold at an average price of $33.64, for a total transaction of $644,172.36. Following the completion of the transaction, the insider now owns 8,961 shares in the company, valued at approximately $301,448.04. The disclosure for this sale can be found here. In the last quarter, insiders purchased 95,000 shares of company stock worth $581,500. 12.20% of the stock is currently owned by company insiders.
Institutional investors have recently made changes to their positions in the stock. Cerebellum GP LLC bought a new position in MGM Resorts International in the 4th quarter worth about $126,000. Sun Life Financial INC bought a new position in MGM Resorts International in the 3rd quarter worth about $124,000. Northwestern Mutual Wealth Management Co. boosted its stake in MGM Resorts International by 88.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 4,945 shares of the company’s stock worth $165,000 after purchasing an additional 2,318 shares in the last quarter. Toronto Dominion Bank boosted its stake in MGM Resorts International by 12.4% in the 2nd quarter. Toronto Dominion Bank now owns 5,644 shares of the company’s stock worth $177,000 after purchasing an additional 624 shares in the last quarter. Finally, Spirit of America Management Corp NY boosted its stake in MGM Resorts International by 78.1% in the 4th quarter. Spirit of America Management Corp NY now owns 5,700 shares of the company’s stock worth $190,000 after purchasing an additional 2,500 shares in the last quarter. Institutional investors own 82.31% of the company’s stock.
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MGM Resorts International Company Profile
MGM Resorts International is a holding company. The Company, through its subsidiaries, owns and operates casino resorts. The Company operates in two segments: domestic resorts and MGM China. Its domestic resorts segment consists of non-gaming operations, including hotel, food and beverage, entertainment and other non-gaming amenities.
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