MGM Resorts International (NYSE:MGM) Shares Gap Down on Disappointing Earnings

Shares of MGM Resorts International (NYSE:MGM) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $41.41, but opened at $38.77. MGM Resorts International shares last traded at $37.76, with a volume of 1,493,586 shares trading hands.

The company reported $0.54 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.04). The business had revenue of $4.18 billion for the quarter, compared to analysts’ expectations of $4.21 billion. MGM Resorts International had a net margin of 5.23% and a return on equity of 25.46%. The company’s revenue was up 5.3% on a year-over-year basis. During the same period last year, the business earned $0.64 earnings per share.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on MGM shares. Mizuho lowered their price target on MGM Resorts International from $57.00 to $56.00 and set an “outperform” rating for the company in a research report on Thursday. Deutsche Bank Aktiengesellschaft dropped their target price on shares of MGM Resorts International from $57.00 to $52.00 and set a “buy” rating on the stock in a research note on Tuesday, October 1st. Macquarie decreased their price objective on shares of MGM Resorts International from $58.00 to $55.00 and set an “outperform” rating for the company in a report on Friday, August 2nd. Wells Fargo & Company cut their target price on MGM Resorts International from $53.00 to $47.00 and set an “overweight” rating on the stock in a research note on Thursday, October 17th. Finally, Truist Financial reduced their target price on MGM Resorts International from $58.00 to $56.00 and set a “buy” rating for the company in a report on Wednesday, October 23rd. Four research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $53.15.

Insider Buying and Selling at MGM Resorts International

In other news, CFO Jonathan S. Halkyard acquired 10,000 shares of the company’s stock in a transaction on Monday, August 5th. The stock was bought at an average cost of $34.00 per share, with a total value of $340,000.00. Following the completion of the purchase, the chief financial officer now directly owns 38,299 shares of the company’s stock, valued at $1,302,166. This represents a 0.00 % increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, Director Keith A. Meister sold 121,000 shares of the firm’s stock in a transaction that occurred on Friday, September 13th. The shares were sold at an average price of $36.72, for a total transaction of $4,443,120.00. Following the transaction, the director now directly owns 5,738,478 shares of the company’s stock, valued at approximately $210,716,912.16. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Jonathan S. Halkyard purchased 10,000 shares of the stock in a transaction that occurred on Monday, August 5th. The stock was purchased at an average price of $34.00 per share, with a total value of $340,000.00. Following the acquisition, the chief financial officer now directly owns 38,299 shares of the company’s stock, valued at $1,302,166. This trade represents a 0.00 % increase in their position. The disclosure for this purchase can be found here. Insiders have purchased a total of 216,400 shares of company stock worth $7,312,197 over the last ninety days. Company insiders own 2.13% of the company’s stock.

Institutional Investors Weigh In On MGM Resorts International

Several hedge funds have recently made changes to their positions in the company. UMB Bank n.a. lifted its stake in MGM Resorts International by 33.3% in the second quarter. UMB Bank n.a. now owns 949 shares of the company’s stock worth $42,000 after acquiring an additional 237 shares during the period. Texas Permanent School Fund Corp boosted its stake in shares of MGM Resorts International by 0.4% during the first quarter. Texas Permanent School Fund Corp now owns 56,487 shares of the company’s stock valued at $2,667,000 after purchasing an additional 245 shares in the last quarter. Envestnet Portfolio Solutions Inc. increased its holdings in MGM Resorts International by 1.2% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 22,900 shares of the company’s stock valued at $1,018,000 after buying an additional 278 shares during the period. HB Wealth Management LLC raised its stake in MGM Resorts International by 6.3% in the second quarter. HB Wealth Management LLC now owns 4,917 shares of the company’s stock worth $219,000 after buying an additional 293 shares in the last quarter. Finally, US Bancorp DE lifted its holdings in MGM Resorts International by 1.3% during the first quarter. US Bancorp DE now owns 23,558 shares of the company’s stock worth $1,112,000 after buying an additional 298 shares during the period. 68.11% of the stock is currently owned by hedge funds and other institutional investors.

MGM Resorts International Price Performance

The firm has a 50-day simple moving average of $38.46 and a 200-day simple moving average of $40.22. The firm has a market cap of $11.06 billion, a P/E ratio of 13.00, a PEG ratio of 1.02 and a beta of 2.23. The company has a current ratio of 1.47, a quick ratio of 1.42 and a debt-to-equity ratio of 1.65.

MGM Resorts International Company Profile

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.