MGM Resorts International (NYSE:MGM) Shares Gap Down Following Weak Earnings

MGM Resorts International (NYSE:MGM)’s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $31.21, but opened at $29.24. MGM Resorts International shares last traded at $30.0560, with a volume of 1,980,981 shares.

The company reported $0.24 earnings per share for the quarter, missing analysts’ consensus estimates of $0.37 by ($0.13). MGM Resorts International had a net margin of 0.40% and a return on equity of 16.95%. The business had revenue of $4.25 billion during the quarter, compared to analyst estimates of $4.24 billion. During the same quarter in the previous year, the firm posted $0.54 earnings per share. The firm’s quarterly revenue was up 1.6% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on MGM. Mizuho set a $62.00 price target on shares of MGM Resorts International in a research report on Thursday. Citigroup dropped their price target on shares of MGM Resorts International from $51.00 to $47.50 and set a “buy” rating for the company in a research report on Thursday. Morgan Stanley lifted their price target on shares of MGM Resorts International from $41.00 to $43.00 and gave the company an “equal weight” rating in a research report on Thursday, September 11th. Barclays lowered their price objective on shares of MGM Resorts International from $43.00 to $42.00 and set an “overweight” rating for the company in a research report on Thursday. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of MGM Resorts International in a research report on Wednesday, October 8th. Fourteen equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $47.58.

Insiders Place Their Bets

In related news, Director Keith A. Meister sold 242,000 shares of the business’s stock in a transaction on Thursday, September 11th. The shares were sold at an average price of $35.42, for a total value of $8,571,640.00. Following the sale, the director owned 5,385,478 shares of the company’s stock, valued at $190,753,630.76. The trade was a 4.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider John Mcmanus sold 60,000 shares of the business’s stock in a transaction on Monday, September 15th. The stock was sold at an average price of $36.12, for a total transaction of $2,167,200.00. Following the completion of the sale, the insider directly owned 31,521 shares in the company, valued at approximately $1,138,538.52. This represents a 65.56% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 3.06% of the company’s stock.

Institutional Trading of MGM Resorts International

Several institutional investors have recently modified their holdings of MGM. GAMMA Investing LLC boosted its position in MGM Resorts International by 10.6% during the first quarter. GAMMA Investing LLC now owns 6,477 shares of the company’s stock valued at $192,000 after acquiring an additional 619 shares during the last quarter. Golden State Wealth Management LLC boosted its position in MGM Resorts International by 83.5% during the first quarter. Golden State Wealth Management LLC now owns 1,000 shares of the company’s stock valued at $30,000 after acquiring an additional 455 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its position in MGM Resorts International by 18.9% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 29,280 shares of the company’s stock valued at $889,000 after acquiring an additional 4,655 shares during the last quarter. Amalgamated Bank raised its holdings in shares of MGM Resorts International by 0.8% during the first quarter. Amalgamated Bank now owns 43,933 shares of the company’s stock valued at $1,302,000 after purchasing an additional 329 shares during the period. Finally, Ameritas Advisory Services LLC raised its holdings in shares of MGM Resorts International by 12.8% during the first quarter. Ameritas Advisory Services LLC now owns 30,145 shares of the company’s stock valued at $897,000 after purchasing an additional 3,430 shares during the period. Institutional investors own 68.11% of the company’s stock.

MGM Resorts International Stock Down 1.7%

The firm’s fifty day moving average price is $34.83 and its two-hundred day moving average price is $34.35. The stock has a market cap of $8.35 billion, a price-to-earnings ratio of 191.74, a price-to-earnings-growth ratio of 1.40 and a beta of 1.67. The company has a debt-to-equity ratio of 1.67, a current ratio of 1.22 and a quick ratio of 1.18.

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.