Melco Resorts & Entertainment (NASDAQ:MLCO) Shares Gap Down on Disappointing Earnings

Melco Resorts & Entertainment Limited (NASDAQ:MLCO)’s share price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $5.73, but opened at $5.31. Melco Resorts & Entertainment shares last traded at $5.60, with a volume of 912,857 shares changing hands.

The company reported ($0.01) EPS for the quarter, missing the consensus estimate of $0.08 by ($0.09). Melco Resorts & Entertainment had a negative net margin of 2.04% and a negative return on equity of 16.35%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on MLCO shares. Citigroup downgraded shares of Melco Resorts & Entertainment from a “buy” rating to a “neutral” rating and reduced their target price for the company from $10.00 to $6.00 in a research note on Monday, February 10th. Susquehanna cut their price target on shares of Melco Resorts & Entertainment from $10.00 to $9.00 and set a “positive” rating on the stock in a research report on Monday, February 3rd. Finally, Morgan Stanley reissued an “equal weight” rating and set a $7.50 price target (down from $9.60) on shares of Melco Resorts & Entertainment in a research report on Tuesday, December 17th. Four research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $7.40.

Hedge Funds Weigh In On Melco Resorts & Entertainment

Hedge funds and other institutional investors have recently modified their holdings of the business. Arrowstreet Capital Limited Partnership acquired a new position in shares of Melco Resorts & Entertainment in the 4th quarter valued at about $28,989,000. Coronation Fund Managers Ltd. grew its holdings in shares of Melco Resorts & Entertainment by 15.0% in the third quarter. Coronation Fund Managers Ltd. now owns 13,072,483 shares of the company’s stock valued at $101,835,000 after acquiring an additional 1,705,872 shares in the last quarter. Eminence Capital LP grew its holdings in shares of Melco Resorts & Entertainment by 22.1% in the fourth quarter. Eminence Capital LP now owns 7,735,919 shares of the company’s stock valued at $44,791,000 after acquiring an additional 1,402,619 shares in the last quarter. BNP Paribas Financial Markets lifted its stake in Melco Resorts & Entertainment by 206.5% in the fourth quarter. BNP Paribas Financial Markets now owns 2,009,189 shares of the company’s stock valued at $11,633,000 after purchasing an additional 1,353,617 shares during the last quarter. Finally, JPMorgan Chase & Co. lifted its stake in Melco Resorts & Entertainment by 1,240.2% in the fourth quarter. JPMorgan Chase & Co. now owns 1,342,132 shares of the company’s stock valued at $7,771,000 after purchasing an additional 1,241,986 shares during the last quarter. Institutional investors own 39.62% of the company’s stock.

Melco Resorts & Entertainment Stock Up 0.2 %

The stock has a market cap of $2.41 billion, a PE ratio of -25.42, a P/E/G ratio of 0.63 and a beta of 1.04. The firm has a 50-day simple moving average of $5.73 and a 200-day simple moving average of $6.16.

Melco Resorts & Entertainment Company Profile

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities.