Stock Traders Buy High Volume of Call Options on MGM Resorts International (NYSE:MGM)

MGM Resorts International (NYSE:MGM) saw unusually large options trading activity on Tuesday. Traders acquired 14,864 call options on the company. This represents an increase of approximately 46% compared to the average volume of 10,171 call options.

MGM Resorts International Price Performance

Shares of NYSE MGM opened at $34.15 on Wednesday. The company has a current ratio of 1.22, a quick ratio of 1.18 and a debt-to-equity ratio of 1.67. The stock has a fifty day simple moving average of $32.97 and a two-hundred day simple moving average of $34.58. MGM Resorts International has a 1-year low of $25.30 and a 1-year high of $41.32. The firm has a market cap of $9.34 billion, a price-to-earnings ratio of 213.41, a price-to-earnings-growth ratio of 1.40 and a beta of 1.66.

MGM Resorts International (NYSE:MGM) last issued its quarterly earnings results on Wednesday, October 29th. The company reported $0.24 EPS for the quarter, missing analysts’ consensus estimates of $0.37 by ($0.13). The firm had revenue of $4.25 billion for the quarter, compared to analysts’ expectations of $4.24 billion. MGM Resorts International had a net margin of 0.40% and a return on equity of 16.95%. During the same period in the prior year, the company earned $0.54 EPS. The firm’s quarterly revenue was up 1.6% on a year-over-year basis. Analysts anticipate that MGM Resorts International will post 2.21 earnings per share for the current year.

Analysts Set New Price Targets

Several analysts have recently issued reports on MGM shares. Macquarie reduced their target price on shares of MGM Resorts International from $48.00 to $46.00 and set an “outperform” rating for the company in a research note on Thursday, October 2nd. Stifel Nicolaus set a $45.00 price objective on shares of MGM Resorts International in a research report on Thursday, October 30th. Wells Fargo & Company started coverage on shares of MGM Resorts International in a research note on Tuesday, November 18th. They issued an “underweight” rating and a $29.00 price objective for the company. The Goldman Sachs Group restated a “sell” rating and issued a $31.00 target price on shares of MGM Resorts International in a research note on Thursday, October 30th. Finally, Mizuho set a $62.00 target price on MGM Resorts International in a report on Thursday, October 30th. Thirteen analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $45.97.

Insider Activity

In other news, insider John Mcmanus sold 60,000 shares of the firm’s stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $36.12, for a total value of $2,167,200.00. Following the transaction, the insider owned 31,521 shares in the company, valued at $1,138,538.52. This trade represents a 65.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Keith A. Meister sold 242,000 shares of the company’s stock in a transaction on Thursday, September 11th. The stock was 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. This trade represents a 4.30% decrease in their position. The SEC filing for this sale provides additional information. 3.06% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On MGM Resorts International

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MGM. CYBER HORNET ETFs LLC bought a new position in MGM Resorts International in the 2nd quarter worth approximately $25,000. Mendota Financial Group LLC purchased a new stake in shares of MGM Resorts International during the third quarter worth $27,000. Mather Group LLC. bought a new position in shares of MGM Resorts International in the third quarter worth $33,000. Employees Retirement System of Texas purchased a new position in shares of MGM Resorts International in the second quarter valued at $45,000. Finally, MassMutual Private Wealth & Trust FSB grew its position in shares of MGM Resorts International by 66.9% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 1,320 shares of the company’s stock valued at $45,000 after purchasing an additional 529 shares in the last quarter. Institutional investors own 68.11% of the company’s stock.

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.