MGM Resorts International (NYSE:MGM) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research downgraded shares of MGM Resorts International (NYSE:MGM) from a hold rating to a sell rating in a research note issued to investors on Friday.
According to Zacks, “MGM Resorts’ second-quarter 2017 adjusted earnings of $0.31 per share beat the Zacks Consensus Estimate by 10.7% and rose 19.2% year over year on higher revenues. Total revenue of $2.64 billion lagged the consensus mark by around 1% but rose 16.4% year over year. Higher revenues from its Las Vegas operations were partially offset by weak results at MGM China. Thus, despite the improving gaming trends, 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, the company’s strong portfolio, new resort openings and focus on non-gaming activities bode well. Improving economy and growing tourism in Las Vegas should also drive revenue growth at its properties in the region. Yet, increased competition and debt pressure are concerns.”
Several other analysts also recently issued reports on MGM. Goldman Sachs Group, Inc. (The) restated a buy rating and issued a $36.00 price target on shares of MGM Resorts International in a research note on Tuesday, April 4th. UBS AG restated a buy rating on shares of MGM Resorts International in a research note on Tuesday, April 11th. Susquehanna Bancshares Inc restated a positive rating and issued a $31.00 price target on shares of MGM Resorts International in a research note on Thursday, April 20th. Aegis restated a buy rating on shares of MGM Resorts International in a research note on Sunday, April 23rd. Finally, Telsey Advisory Group restated an outperform rating and issued a $36.00 price target (up from $32.00) on shares of MGM Resorts International in a research note on Thursday, April 27th. One analyst has rated the stock with a sell rating, two have given a hold rating and nineteen have assigned a buy rating to the stock. MGM Resorts International has a consensus rating of Buy and an average price target of $34.59.
Shares of MGM Resorts International (NYSE:MGM) traded down 1.1962% on Friday, hitting $32.5361. The company had a trading volume of 3,553,971 shares. The firm has a 50-day moving average price of $32.59 and a 200 day moving average price of $29.78. MGM Resorts International has a 12-month low of $23.38 and a 12-month high of $34.53. The company has a market capitalization of $18.71 billion, a P/E ratio of 19.2521 and a beta of 1.47.
MGM Resorts International (NYSE:MGM) last released its quarterly earnings results on Thursday, July 27th. The company reported $0.31 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.28 by $0.03. The business had revenue of $2.64 billion during the quarter, compared to the consensus estimate of $2.67 billion. MGM Resorts International had a return on equity of 7.97% and a net margin of 9.26%. The firm’s quarterly revenue was up 16.4% on a year-over-year basis. During the same period in the previous year, the company posted $0.29 EPS. Equities analysts expect that MGM Resorts International will post $1.27 EPS for the current year.
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The firm also recently declared a quarterly dividend, which will be paid on Friday, September 15th. Stockholders of record on Monday, September 11th will be issued a dividend of $0.11 per share. The ex-dividend date is Friday, September 8th. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.34%. MGM Resorts International’s dividend payout ratio (DPR) is currently 26.04%.
In other news, EVP Robert Selwood sold 10,046 shares of the business’s stock in a transaction on Thursday, May 25th. The stock was sold at an average price of $31.56, for a total transaction of $317,051.76. Following the completion of the transaction, the executive vice president now owns 116,743 shares of the company’s stock, valued at approximately $3,684,409.08. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, EVP John Mcmanus sold 10,000 shares of the business’s stock in a transaction on Friday, May 19th. The stock was sold at an average price of $31.28, for a total value of $312,800.00. Following the transaction, the executive vice president now directly owns 46,917 shares of the company’s stock, valued at approximately $1,467,563.76. The disclosure for this sale can be found here. Insiders have sold a total of 42,367 shares of company stock valued at $1,334,623 in the last three months. 12.20% of the stock is owned by insiders.
Several institutional investors have recently bought and sold shares of the company. IFP Advisors Inc boosted its position in MGM Resorts International by 0.7% in the first quarter. IFP Advisors Inc now owns 4,558 shares of the company’s stock worth $125,000 after buying an additional 31 shares during the period. Toronto Dominion Bank boosted its position in MGM Resorts International by 28.0% in the first quarter. Toronto Dominion Bank now owns 5,020 shares of the company’s stock worth $138,000 after buying an additional 1,099 shares during the period. MUFG Americas Holdings Corp acquired a new position in MGM Resorts International during the first quarter worth approximately $198,000. Global X Management Co. LLC boosted its position in MGM Resorts International by 30.4% in the first quarter. Global X Management Co. LLC now owns 7,403 shares of the company’s stock worth $203,000 after buying an additional 1,724 shares during the period. Finally, IPG Investment Advisors LLC acquired a new position in MGM Resorts International during the second quarter worth approximately $219,000. 73.66% of the stock is owned by institutional investors.
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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