Melco Resorts & Entertainment (NASDAQ:MLCO) Trading Down 8.3% – Should You Sell?

Melco Resorts & Entertainment Limited (NASDAQ:MLCO)’s stock price dropped 8.3% during mid-day trading on Wednesday . The company traded as low as $6.99 and last traded at $6.9050. Approximately 782,924 shares changed hands during mid-day trading, an increase of 7% from the average daily volume of 732,750 shares. The stock had previously closed at $7.53.

Analysts Set New Price Targets

A number of equities research analysts recently commented on MLCO shares. Wall Street Zen lowered Melco Resorts & Entertainment from a “strong-buy” rating to a “buy” rating in a research report on Saturday, December 27th. Weiss Ratings restated a “sell (d)” rating on shares of Melco Resorts & Entertainment in a report on Wednesday, October 8th. Zacks Research downgraded shares of Melco Resorts & Entertainment from a “strong-buy” rating to a “hold” rating in a research report on Thursday, October 16th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Melco Resorts & Entertainment from $10.50 to $11.00 and gave the company an “overweight” rating in a research report on Monday, November 10th. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $8.40.

Melco Resorts & Entertainment Price Performance

The stock has a market capitalization of $2.89 billion, a price-to-earnings ratio of 26.46 and a beta of 0.66. The stock has a 50-day moving average of $8.35 and a 200 day moving average of $8.64.

Melco Resorts & Entertainment (NASDAQ:MLCO) last issued its quarterly earnings results on Thursday, November 6th. The company reported $0.21 EPS for the quarter, topping the consensus estimate of $0.11 by $0.10. The company had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.28 billion. Melco Resorts & Entertainment had a net margin of 2.06% and a negative return on equity of 23.00%. Melco Resorts & Entertainment’s revenue was up 11.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.06 EPS. Sell-side analysts anticipate that Melco Resorts & Entertainment Limited will post 0.16 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. FNY Investment Advisers LLC bought a new position in shares of Melco Resorts & Entertainment in the 2nd quarter worth $38,000. Solstein Capital LLC lifted its stake in Melco Resorts & Entertainment by 74.9% in the second quarter. Solstein Capital LLC now owns 9,340 shares of the company’s stock valued at $68,000 after buying an additional 4,000 shares during the period. Quarry LP bought a new position in Melco Resorts & Entertainment during the third quarter worth about $68,000. Northwestern Mutual Wealth Management Co. acquired a new position in shares of Melco Resorts & Entertainment during the 2nd quarter worth about $71,000. Finally, Campbell & CO Investment Adviser LLC bought a new stake in shares of Melco Resorts & Entertainment in the 2nd quarter valued at about $75,000. Institutional investors and hedge funds own 39.62% of the company’s stock.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited (NASDAQ: MLCO) is a developer, owner and operator of integrated resort destinations in Asia and Europe. The company’s portfolio spans casino gaming, hotel accommodations, retail, dining and entertainment facilities. Melco’s properties feature a mix of luxury hotels, award-winning restaurants, high-limit gaming salons and entertainment venues, catering to a broad range of leisure and business travelers.

In Macau, Melco owns and operates flagship properties including City of Dreams Macau, Altira Macau and Studio City.