Melco Resorts & Entertainment (NASDAQ:MLCO) Sets New 12-Month Low – Here’s Why

Melco Resorts & Entertainment Limited (NASDAQ:MLCO)’s stock price hit a new 52-week low on Wednesday. The company traded as low as $4.50 and last traded at $4.5450, with a volume of 94374 shares traded. The stock had previously closed at $4.56.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on MLCO. JPMorgan Chase & Co. cut their target price on Melco Resorts & Entertainment from $6.00 to $5.70 and set a “neutral” rating on the stock in a report on Thursday, July 16th. Morgan Stanley downgraded shares of Melco Resorts & Entertainment from an “overweight” rating to a “negative” rating in a report on Monday, June 22nd. Citigroup dropped their price objective on shares of Melco Resorts & Entertainment from $10.50 to $9.40 and set a “buy” rating on the stock in a research note on Friday, July 10th. Susquehanna set a $7.00 target price on shares of Melco Resorts & Entertainment in a research report on Friday, August 14th. Finally, Wall Street Zen lowered shares of Melco Resorts & Entertainment from a “buy” rating to a “hold” rating in a report on Sunday, June 28th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $7.27.

Melco Resorts & Entertainment Price Performance

The company’s fifty day moving average price is $5.24 and its 200 day moving average price is $5.43. The company has a market cap of $1.74 billion, a PE ratio of 7.64, a P/E/G ratio of 3.60 and a beta of 0.58.

Melco Resorts & Entertainment (NASDAQ:MLCO) last released its quarterly earnings results on Thursday, August 13th. The company reported $0.06 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.06. Melco Resorts & Entertainment had a net margin of 4.50% and a negative return on equity of 23.81%. The company had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period last year, the firm earned $0.04 earnings per share. The firm’s revenue was down 5.7% on a year-over-year basis. On average, analysts forecast that Melco Resorts & Entertainment Limited will post 0.41 EPS for the current year.

Hedge Funds Weigh In On Melco Resorts & Entertainment

Hedge funds have recently modified their holdings of the company. Coronation Fund Managers Ltd. increased its position in shares of Melco Resorts & Entertainment by 35.2% during the first quarter. Coronation Fund Managers Ltd. now owns 11,269,346 shares of the company’s stock valued at $64,010,000 after acquiring an additional 2,934,127 shares during the last quarter. Capula Management Ltd purchased a new position in Melco Resorts & Entertainment in the first quarter worth $1,326,000. Renaissance Technologies LLC grew its stake in Melco Resorts & Entertainment by 7.9% in the 1st quarter. Renaissance Technologies LLC now owns 4,461,600 shares of the company’s stock valued at $25,342,000 after purchasing an additional 325,900 shares during the period. Bank of America Corp DE grew its stake in Melco Resorts & Entertainment by 177.7% in the 1st quarter. Bank of America Corp DE now owns 890,787 shares of the company’s stock valued at $5,060,000 after purchasing an additional 570,060 shares during the period. Finally, SG Americas Securities LLC increased its position in shares of Melco Resorts & Entertainment by 190.9% during the 1st quarter. SG Americas Securities LLC now owns 461,100 shares of the company’s stock valued at $2,619,000 after purchasing an additional 302,609 shares during the last quarter. Institutional investors own 39.62% of the company’s stock.

Melco Resorts & Entertainment Company Profile

Melco Resorts & Entertainment Limited is a developer, owner and operator of integrated resort facilities focused on gaming, hospitality and entertainment. The company’s properties combine casino operations with hotels, restaurants, retail, convention space and leisure attractions.

Melco operates in Macau, including City of Dreams Macau, Studio City Macau and Altira Macau. Its portfolio also includes City of Dreams Manila in the Philippines and City of Dreams Mediterranean in Cyprus, along with satellite casinos in Cyprus.