MGM Resorts International (NYSE:MGM) Stock Rated “Neutral” in New Coverage at Bank of America

Bank of America assumed coverage on shares of MGM Resorts International (NYSE:MGM) in a research report sent to investors on Thursday, Marketbeat reports. The brokerage issued a neutral rating and a $40.00 target price on the stock.

Several other research analysts have also issued reports on MGM. JPMorgan Chase & Co. increased their price target on shares of MGM Resorts International from $46.00 to $53.00 and gave the stock an “overweight” rating in a research report on Friday, June 12th. Deutsche Bank Aktiengesellschaft upped their price objective on MGM Resorts International from $48.00 to $55.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Truist Financial raised MGM Resorts International from a “hold” rating to a “buy” rating and increased their target price for the stock from $42.00 to $55.00 in a report on Wednesday, May 27th. Weiss Ratings raised MGM Resorts International from a “sell (d+)” rating to a “hold (c)” rating in a research note on Thursday, July 30th. Finally, Morgan Stanley reiterated an “underweight” rating on shares of MGM Resorts International in a research report on Wednesday, July 22nd. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $52.24.

MGM Resorts International Stock Down 3.4%

MGM opened at $32.55 on Thursday. The company has a market capitalization of $8.19 billion, a P/E ratio of 19.72, a P/E/G ratio of 1.67 and a beta of 1.28. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.34 and a quick ratio of 1.30. The firm’s fifty day moving average price is $42.34 and its two-hundred day moving average price is $41.74. MGM Resorts International has a fifty-two week low of $29.18 and a fifty-two week high of $51.59.

MGM Resorts International (NYSE:MGM) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.03. MGM Resorts International had a net margin of 2.40% and a return on equity of 23.30%. The company had revenue of $4.45 billion during the quarter, compared to analysts’ expectations of $4.42 billion. During the same quarter in the prior year, the company posted $0.79 EPS. The business’s revenue was up 2.2% on a year-over-year basis. On average, analysts anticipate that MGM Resorts International will post 1.95 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. International Assets Investment Management LLC acquired a new position in shares of MGM Resorts International in the 1st quarter worth approximately $30,000. Optiver Holding B.V. acquired a new stake in MGM Resorts International during the 1st quarter valued at $35,000. Fiduciary Financial Advisors bought a new position in MGM Resorts International in the 2nd quarter valued at $48,000. Global Retirement Partners LLC bought a new position in MGM Resorts International in the 2nd quarter valued at $53,000. Finally, Modus Advisors LLC acquired a new position in MGM Resorts International in the fourth quarter worth $54,000. Institutional investors own 68.11% of the company’s stock.

More MGM Resorts International News

Here are the key news stories impacting MGM Resorts International this week:

• Positive Sentiment: Analysts continue to see potential upside in MGM’s standalone valuation. Bank of America initiated coverage with a Neutral rating and a $40 price target, while Capital One raised its target to $57 with an Overweight rating. Susquehanna retained a positive view despite lowering its target to $46. MGM Stock Drops as Diller’s People Backs Away From $18 Billion Deal
• Positive Sentiment: Core operations remain a potential support, including momentum at BetMGM and MGM China. The company also remains committed to executing its strategy as an independent company and has a share-repurchase program that could help support the stock. Recent quarterly results exceeded consensus estimates, with $4.45 billion of revenue and $0.59 in earnings per share. MGM Resorts International Board Confirms Standalone Strategy
• Neutral Sentiment: Reports indicate MGM is considering a bid for Barry Diller’s People Inc., which already owns roughly 26%–27% of MGM. Such a role-reversal transaction could provide a new catalyst, but it is only under discussion and would introduce execution, financing and strategic risks. MGM Discusses Bid for Barry Diller’s People Inc.
• Negative Sentiment: People Inc. withdrew its proposal to acquire MGM’s remaining public shares for $48.30 each, eliminating the near-term buyout premium and prompting a sharp repricing of MGM shares. Investors must now judge the company on operating performance rather than an expected acquisition. MGM Resorts Shares Sink After People Inc. Rescinds Takeover Offer
• Negative Sentiment: Analysts say investors continue to assign little or no value to MGM’s Japan casino development, while a separate analysis downgraded the stock to Hold because catalysts appear limited. This leaves MGM dependent on execution in its existing markets and digital operations to rebuild investor confidence. Analysts Discuss MGM Japan Casino Valuation

About MGM Resorts International

MGM Resorts International is a global hospitality and entertainment company that owns and operates destination resorts, casinos, hotels, restaurants, convention facilities and live-entertainment venues. Its properties offer casino gaming, hotel accommodations, dining, nightlife, retail, spa services, sporting events and other leisure activities.

The company operates a portfolio of resorts in Las Vegas and other U.S. markets, including properties associated with brands such as MGM Grand, Bellagio, ARIA, Mandalay Bay, Park MGM, New York-New York and MGM National Harbor.