MGM Resorts International (NYSE:MGM) Shares Gap Up on Better-Than-Expected Earnings

MGM Resorts International (NYSE:MGM) 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 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.18. The firm had revenue of $4.38 billion during the quarter, compared to analysts’ expectations of $4.24 billion. MGM Resorts International had a return on equity of 20.51% and a net margin of 7.07%. The company’s quarterly revenue was up 13.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.44 EPS.

Analysts Set New Price Targets

Several brokerages have weighed in on MGM. Susquehanna raised MGM Resorts International from a “neutral” rating to a “positive” rating and lifted their price objective for the company from $46.00 to $54.00 in a report on Thursday. JMP Securities reiterated a “market outperform” rating and issued a $57.00 price target on shares of MGM Resorts International in a research note on Wednesday, February 14th. Mizuho lifted their price target on MGM Resorts International from $61.00 to $62.00 and gave the company a “buy” rating in a research note on Thursday. Macquarie reiterated an “outperform” rating and issued a $58.00 price target on shares of MGM Resorts International in a research note on Wednesday, February 14th. Finally, TheStreet upgraded MGM Resorts International from a “c+” rating to a “b-” rating in a research note on Tuesday, February 13th. Three analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $55.78.

Insider Buying and Selling

In other MGM Resorts International news, Director Keith A. Meister sold 325,000 shares of the company’s stock in a transaction dated 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 sale, the director now owns 6,098,778 shares in the company, valued at approximately $261,637,576.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 2.13% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On MGM Resorts International

A number of institutional investors have recently made changes to their positions in the stock. Davis Selected Advisers bought a new stake in shares of MGM Resorts International in the 3rd quarter valued at about $361,915,000. Capital World Investors grew its position in shares of MGM Resorts International by 17.7% in the 4th quarter. Capital World Investors now owns 6,551,310 shares of the company’s stock valued at $292,713,000 after buying an additional 984,617 shares during the last quarter. Boston Partners grew its position in shares of MGM Resorts International by 36.3% in the 4th quarter. Boston Partners now owns 5,427,254 shares of the company’s stock valued at $242,002,000 after buying an additional 1,446,362 shares during the last quarter. Fisher Asset Management LLC grew its position in shares of MGM Resorts International by 5.2% in the 4th quarter. Fisher Asset Management LLC now owns 4,357,344 shares of the company’s stock valued at $194,686,000 after buying an additional 213,528 shares during the last quarter. Finally, Invesco Ltd. grew its position in shares of MGM Resorts International by 14.6% in the 3rd quarter. Invesco Ltd. now owns 3,940,156 shares of the company’s stock valued at $144,840,000 after buying an additional 500,566 shares during the last quarter. Institutional investors own 68.11% of the company’s stock.

MGM Resorts International Price Performance

The stock has a market cap of $13.11 billion, a P/E ratio of 13.47, a price-to-earnings-growth ratio of 1.62 and a beta of 2.22. The company has a current ratio of 1.57, a quick ratio of 1.53 and a debt-to-equity ratio of 1.46. The business has a 50-day simple moving average of $43.58 and a 200 day simple moving average of $42.22.

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.