MGM Resorts International (NYSE:MGM) Shares Gap Down After Earnings Miss

MGM Resorts International (NYSE:MGM) shares 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 traded.

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

Wall Street Analyst Weigh In

A number of research firms have issued reports on MGM. Mizuho lowered their price objective on shares of MGM Resorts International from $57.00 to $56.00 and set an “outperform” rating for the company in a research note on Thursday. Macquarie lowered their price target on MGM Resorts International from $58.00 to $55.00 and set an “outperform” rating for the company in a research report on Friday, August 2nd. Truist Financial cut their price objective on MGM Resorts International from $58.00 to $56.00 and set a “buy” rating on the stock in a report on Wednesday, October 23rd. Wells Fargo & Company decreased their target price on MGM Resorts International from $53.00 to $47.00 and set an “overweight” rating for the company in a report on Thursday, October 17th. Finally, Barclays cut their price target on shares of MGM Resorts International from $54.00 to $50.00 and set an “overweight” rating on the stock in a report on Thursday. Four analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $53.15.

Insider Activity

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

Institutional Trading of MGM Resorts International

Several large investors have recently added to or reduced their stakes in the stock. International Assets Investment Management LLC purchased a new stake in shares of MGM Resorts International in the second quarter valued at about $28,000. EverSource Wealth Advisors LLC lifted its position in MGM Resorts International by 60.7% in the first quarter. EverSource Wealth Advisors LLC now owns 871 shares of the company’s stock valued at $41,000 after buying an additional 329 shares during the last quarter. Eastern Bank purchased a new position in MGM Resorts International during the third quarter worth about $35,000. UMB Bank n.a. increased its position in shares of MGM Resorts International by 33.3% during the second quarter. UMB Bank n.a. now owns 949 shares of the company’s stock valued at $42,000 after acquiring an additional 237 shares during the last quarter. Finally, Ashton Thomas Private Wealth LLC purchased a new stake in shares of MGM Resorts International in the 2nd quarter valued at approximately $49,000. 68.11% of the stock is currently owned by hedge funds and other institutional investors.

MGM Resorts International Stock Performance

The company has a current ratio of 1.47, a quick ratio of 1.42 and a debt-to-equity ratio of 1.65. The firm’s fifty day moving average price is $38.46 and its 200 day moving average price is $40.22. The stock has a market capitalization of $11.06 billion, a price-to-earnings ratio of 13.00, a price-to-earnings-growth ratio of 1.02 and a beta of 2.23.

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.