Zacks Investment Research upgraded shares of MGM Resorts International (NYSE:MGM) from a sell rating to a hold rating in a research note issued to investors on Friday.
According to Zacks, “MGM Resorts’ third-quarter 2017 adjusted earnings of 33 cents per share came in line with the Zacks Consensus Estimate but fell 43.1% year over year. Total revenue of $2.83 billion topped the consensus mark by around 2% and rose 12.4% year over year. Higher revenues from its Las Vegas operations were partly offset by weak results at MGM China. Thus, it will take some time for the company to fully capitalize on the rebound in Macau gaming revenues. In fact, MGM Resorts’ shares have underperformed the industry year to date. Fears of another corruption crackdown may further hamper performance. Even so, strong portfolio, new resort openings and focus on non-gaming activities bode well. Improving economy and growing tourism in Las Vegas is also likely to drive revenue growth at its properties in the region. Yet, near-term impact of Las Vegas shooting massacre, along with increased competition and debt pressure are concerns.”
A number of other research analysts also recently issued reports on the stock. Stifel Nicolaus restated a hold rating and issued a $36.00 price target (up previously from $33.00) on shares of MGM Resorts International in a research report on Thursday, November 9th. J P Morgan Chase & Co boosted their price target on shares of MGM Resorts International from $39.00 to $40.00 and gave the stock an overweight rating in a research report on Wednesday, November 1st. Nomura dropped their price target on shares of MGM Resorts International from $38.00 to $37.00 and set a buy rating on the stock in a research report on Wednesday, November 1st. Roth Capital began coverage on shares of MGM Resorts International in a research report on Wednesday, October 25th. They issued a buy rating and a $38.00 price target on the stock. Finally, Morgan Stanley set a $34.00 price target on shares of MGM Resorts International and gave the stock a buy rating in a research report on Friday, October 13th. Six equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. The stock has an average rating of Buy and a consensus price target of $36.50.
Shares of MGM Resorts International (NYSE MGM) traded up $0.18 during midday trading on Friday, hitting $33.06. 6,162,400 shares of the stock were exchanged, compared to its average volume of 8,841,466. The firm has a market cap of $18,614.63, a P/E ratio of 29.10, a P/E/G ratio of 7.47 and a beta of 1.42. MGM Resorts International has a 1 year low of $25.15 and a 1 year high of $34.65. The company has a quick ratio of 0.98, a current ratio of 1.02 and a debt-to-equity ratio of 1.26.
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The firm also recently declared a quarterly dividend, which will be paid on Friday, December 15th. Shareholders of record on Monday, December 11th will be paid a dividend of $0.11 per share. The ex-dividend date is Friday, December 8th. This represents a $0.44 dividend on an annualized basis and a yield of 1.33%. MGM Resorts International’s dividend payout ratio (DPR) is presently 43.14%.
MGM Resorts International announced that its Board of Directors has approved a share buyback plan on Tuesday, September 5th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to reacquire up to 5.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.
In other MGM Resorts International news, insider Corey Ian Sanders sold 16,446 shares of the business’s stock in a transaction on Wednesday, September 6th. The shares were sold at an average price of $33.63, for a total transaction of $553,078.98. Following the completion of the sale, the insider now owns 198,058 shares in the company, valued at approximately $6,660,690.54. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO James Murren sold 259,760 shares of the business’s stock in a transaction on Thursday, September 7th. The shares were sold at an average price of $34.19, for a total transaction of $8,881,194.40. Following the sale, the chief executive officer now owns 71,442 shares of the company’s stock, valued at approximately $2,442,601.98. The disclosure for this sale can be found here. Insiders have sold a total of 698,548 shares of company stock valued at $23,770,532 in the last 90 days. 12.20% of the stock is currently owned by company insiders.
A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in MGM Resorts International by 3.4% during the 2nd quarter. Vanguard Group Inc. now owns 41,200,270 shares of the company’s stock valued at $1,289,156,000 after purchasing an additional 1,354,902 shares in the last quarter. Capital Research Global Investors increased its stake in MGM Resorts International by 1.9% during the 2nd quarter. Capital Research Global Investors now owns 32,282,000 shares of the company’s stock valued at $1,010,104,000 after purchasing an additional 600,000 shares in the last quarter. Canyon Capital Advisors LLC increased its stake in MGM Resorts International by 8.9% during the 2nd quarter. Canyon Capital Advisors LLC now owns 19,402,345 shares of the company’s stock valued at $607,099,000 after purchasing an additional 1,583,585 shares in the last quarter. State Street Corp increased its stake in MGM Resorts International by 1.0% during the 2nd quarter. State Street Corp now owns 8,934,495 shares of the company’s stock valued at $279,564,000 after purchasing an additional 92,329 shares in the last quarter. Finally, PointState Capital LP bought a new stake in shares of MGM Resorts International in the 2nd quarter worth $239,347,000. Institutional investors and hedge funds own 76.63% of the company’s stock.
About MGM Resorts International
MGM Resorts International is a holding company. The Company, through its subsidiaries, owns and operates casino resorts. The Company operates in two segments: domestic resorts and MGM China. Its domestic resorts segment consists of non-gaming operations, including hotel, food and beverage, entertainment and other non-gaming amenities.
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