UBS AG Downgrades MGM Resorts International (MGM) to Neutral
MGM Resorts International (NYSE:MGM) was downgraded by equities research analysts at UBS AG from a “positive” rating to a “neutral” rating in a research report issued on Tuesday.
Several other equities research analysts also recently issued reports on the stock. Barclays PLC restated an “overweight” rating on shares of MGM Resorts International in a research note on Monday. Deutsche Bank AG lowered shares of MGM Resorts International from a “buy” rating to a “hold” rating and set a $36.00 target price on the stock. in a research report on Monday, September 11th. Bank of America Corporation reiterated a “buy” rating and set a $40.00 target price (up from $38.00) on shares of MGM Resorts International in a research note on Friday, September 8th. Stifel Nicolaus reiterated a “buy” rating on shares of MGM Resorts International in a research note on Friday, September 1st. Finally, BidaskClub downgraded shares of MGM Resorts International from a “strong-buy” rating to a “buy” rating in a report on Tuesday, August 1st. One investment analyst has rated the stock with a sell rating, three have given a hold rating and eighteen have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus target price of $35.12.
MGM Resorts International (NYSE:MGM) opened at 30.77 on Tuesday. The firm’s 50-day moving average is $32.17 and its 200-day moving average is $31.15. MGM Resorts International has a 1-year low of $25.15 and a 1-year high of $34.65. The company has a market capitalization of $17.70 billion, a P/E ratio of 18.22 and a beta of 1.46.
MGM Resorts International (NYSE:MGM) last issued its quarterly earnings results on Thursday, July 27th. The company reported $0.31 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.28 by $0.03. MGM Resorts International had a return on equity of 7.97% and a net margin of 9.26%. The company had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.67 billion. During the same period in the previous year, the business posted $0.29 EPS. The company’s revenue for the quarter was up 16.4% on a year-over-year basis. Equities research analysts predict that MGM Resorts International will post $1.29 EPS for the current year.
MGM Resorts International declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, September 5th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to purchase up to 5.3% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its stock is undervalued.
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In other MGM Resorts International news, CEO James Murren sold 57,269 shares of the company’s stock in a transaction dated Monday, July 31st. The shares were sold at an average price of $33.05, for a total transaction of $1,892,740.45. Following the sale, the chief executive officer now directly owns 1,231,611 shares of the company’s stock, valued at $40,704,743.55. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Alexis Herman sold 3,745 shares of the company’s stock in a transaction dated Tuesday, August 1st. The stock was sold at an average price of $32.51, for a total transaction of $121,749.95. Following the sale, the director now directly owns 8,285 shares in the company, valued at $269,345.35. The disclosure for this sale can be found here. Insiders have sold a total of 819,831 shares of company stock valued at $27,686,927 over the last three months. 12.20% of the stock is currently owned by insiders.
Several large investors have recently bought and sold shares of MGM. BlackRock Inc. boosted its holdings in shares of MGM Resorts International by 9,411.8% in the 1st quarter. BlackRock Inc. now owns 22,704,066 shares of the company’s stock worth $622,092,000 after acquiring an additional 22,465,373 shares in the last quarter. PointState Capital LP bought a new stake in MGM Resorts International during the 2nd quarter worth approximately $239,347,000. Maverick Capital Ltd. bought a new stake in MGM Resorts International during the 2nd quarter worth approximately $215,381,000. Iridian Asset Management LLC CT acquired a new stake in MGM Resorts International during the 2nd quarter valued at $192,055,000. Finally, Vanguard Group Inc. increased its holdings in MGM Resorts International by 8.4% during the 1st quarter. Vanguard Group Inc. now owns 39,845,368 shares of the company’s stock valued at $1,091,763,000 after purchasing an additional 3,096,490 shares in the last quarter. Institutional investors own 75.17% 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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