MGM Resorts International (NYSE:MGM) Shares Gap Up After Strong Earnings

MGM Resorts International (NYSE:MGM) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $39.75, but opened at $43.50. MGM Resorts International shares last traded at $41.26, with a volume of 1,681,080 shares.

The company reported $0.74 EPS for the quarter, topping analysts’ consensus estimates of $0.56 by $0.18. MGM Resorts International had a return on equity of 22.97% and a net margin of 5.35%. The firm had revenue of $4.38 billion for the quarter, compared to analysts’ expectations of $4.24 billion. The company’s quarterly revenue was up 13.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.44 earnings per share.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on MGM shares. Morgan Stanley lifted their target price on shares of MGM Resorts International from $45.00 to $46.00 and gave the stock an “equal weight” rating in a report on Tuesday, April 9th. Macquarie restated an “outperform” rating and issued a $58.00 price objective on shares of MGM Resorts International in a report on Wednesday, February 14th. Deutsche Bank Aktiengesellschaft increased their target price on MGM Resorts International from $50.00 to $52.00 and gave the company a “buy” rating in a research note on Wednesday, February 14th. Bank Of America (Bofa) upped their price target on MGM Resorts International from $45.00 to $50.00 and gave the company a “neutral” rating in a report on Wednesday, February 14th. Finally, StockNews.com upgraded MGM Resorts International from a “hold” rating to a “buy” rating in a report on Thursday. Two investment analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. According to MarketBeat, MGM Resorts International has a consensus rating of “Moderate Buy” and an average target price of $54.77.

Insider Buying and Selling

In other news, Director Keith A. Meister sold 325,000 shares of the firm’s stock in a transaction on Tuesday, March 12th. The stock was sold at an average price of $42.90, for a total value of $13,942,500.00. Following the completion of the sale, the director now owns 6,098,778 shares of the company’s stock, valued at approximately $261,637,576.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.13% of the stock is owned by insiders.

Institutional Investors Weigh In On MGM Resorts International

Several institutional investors and hedge funds have recently added to or reduced their stakes in MGM. Davis Selected Advisers acquired a new stake in shares of MGM Resorts International in the third quarter valued at about $361,915,000. Capital World Investors lifted its stake in MGM Resorts International by 17.7% in the 4th quarter. Capital World Investors now owns 6,551,310 shares of the company’s stock worth $292,713,000 after purchasing an additional 984,617 shares in the last quarter. Boston Partners lifted its stake in MGM Resorts International by 36.3% in the 4th quarter. Boston Partners now owns 5,427,254 shares of the company’s stock worth $242,002,000 after purchasing an additional 1,446,362 shares in the last quarter. Fisher Asset Management LLC grew its position in shares of MGM Resorts International by 5.2% in the fourth quarter. Fisher Asset Management LLC now owns 4,357,344 shares of the company’s stock valued at $194,686,000 after purchasing an additional 213,528 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in shares of MGM Resorts International by 14.6% in the third quarter. Invesco Ltd. now owns 3,940,156 shares of the company’s stock valued at $144,840,000 after purchasing an additional 500,566 shares during the last quarter. Hedge funds and other institutional investors own 68.11% of the company’s stock.

MGM Resorts International Stock Performance

The stock has a 50-day moving average of $43.55 and a 200 day moving average of $42.21. The stock has a market cap of $13.01 billion, a PE ratio of 15.72, a P/E/G ratio of 1.63 and a beta of 2.22. The company has a quick ratio of 1.53, a current ratio of 1.57 and a debt-to-equity ratio of 1.46.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.