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

MGM Resorts International (NYSE:MGM) gapped up before the market opened on Thursday following a better than expected earnings announcement. 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, topping the consensus estimate of $0.56 by $0.18. The firm had revenue of $4.38 billion for the quarter, compared to analyst estimates 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 revenue for the quarter was up 13.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.44 earnings per share.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on MGM. TheStreet upgraded MGM Resorts International from a “c+” rating to a “b-” rating in a report on Tuesday, February 13th. Bank Of America (Bofa) boosted their price target on MGM Resorts International from $45.00 to $50.00 and gave the company a “neutral” rating in a report on Wednesday, February 14th. JPMorgan Chase & Co. boosted their price target on MGM Resorts International from $54.00 to $57.00 and gave the company an “overweight” rating in a report on Thursday. Susquehanna upgraded MGM Resorts International from a “neutral” rating to a “positive” rating and boosted their price target for the company from $46.00 to $54.00 in a report on Thursday. Finally, Morgan Stanley increased their price target on MGM Resorts International from $45.00 to $46.00 and gave the company an “equal weight” rating in a research report on Tuesday, April 9th. Two analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. According to data from MarketBeat.com, MGM Resorts International presently has an average rating of “Moderate Buy” and an average price target of $54.77.

Insider Activity at MGM Resorts International

In other news, Director Keith A. Meister sold 325,000 shares of the firm’s stock in a transaction that occurred on 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 completion of the sale, the director now directly owns 6,098,778 shares of the company’s stock, valued at $261,637,576.20. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 2.13% of the company’s stock.

Institutional Trading of MGM Resorts International

A number of hedge funds have recently made changes to their positions in MGM. CVA Family Office LLC acquired a new stake in shares of MGM Resorts International in the fourth quarter valued at approximately $28,000. Sandy Spring Bank lifted its position in shares of MGM Resorts International by 140.8% in the third quarter. Sandy Spring Bank now owns 855 shares of the company’s stock valued at $31,000 after buying an additional 500 shares during the last quarter. Sunbelt Securities Inc. lifted its position in shares of MGM Resorts International by 510.2% in the third quarter. Sunbelt Securities Inc. now owns 1,196 shares of the company’s stock valued at $44,000 after buying an additional 1,000 shares during the last quarter. Accent Capital Management LLC acquired a new stake in shares of MGM Resorts International in the fourth quarter valued at approximately $45,000. Finally, Mendota Financial Group LLC increased its stake in shares of MGM Resorts International by 36.0% during the first quarter. Mendota Financial Group LLC now owns 1,004 shares of the company’s stock worth $47,000 after purchasing an additional 266 shares during the period. 68.11% of the stock is owned by institutional investors and hedge funds.

MGM Resorts International Stock Performance

The company has a market cap of $12.96 billion, a P/E ratio of 12.89, a price-to-earnings-growth ratio of 1.62 and a beta of 2.22. The company has a quick ratio of 1.53, a current ratio of 1.57 and a debt-to-equity ratio of 1.46. The stock has a 50 day moving average price of $43.58 and a two-hundred day moving average price 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.