Melco Resorts & Entertainment (NASDAQ:MLCO) Shares Gap Down – Time to Sell?

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) shares gapped down before the market opened on Tuesday . The stock had previously closed at $8.48, but opened at $7.70. Melco Resorts & Entertainment shares last traded at $7.66, with a volume of 1,313,613 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on MLCO. JPMorgan Chase & Co. cut shares of Melco Resorts & Entertainment from an “overweight” rating to a “neutral” rating and lowered their price target for the company from $10.00 to $7.00 in a report on Thursday, July 18th. Bank of America decreased their target price on shares of Melco Resorts & Entertainment from $8.50 to $7.50 and set a “buy” rating for the company in a research note on Monday, August 12th. Two investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $9.82.

Melco Resorts & Entertainment Trading Down 7.8 %

The business has a 50 day simple moving average of $5.90 and a two-hundred day simple moving average of $6.79. The company has a market cap of $3.48 billion, a PE ratio of -18.02, a price-to-earnings-growth ratio of 1.00 and a beta of 1.06.

Melco Resorts & Entertainment (NASDAQ:MLCO) last issued its quarterly earnings results on Tuesday, August 13th. The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.10 by ($0.05). The company had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.16 billion. Melco Resorts & Entertainment had a negative return on equity of 11.59% and a negative net margin of 3.11%. The business’s revenue for the quarter was up 22.3% on a year-over-year basis. During the same period last year, the company posted ($0.02) EPS. On average, equities research analysts expect that Melco Resorts & Entertainment Limited will post 0.2 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Melco Resorts & Entertainment

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MLCO. Bleakley Financial Group LLC grew its position in Melco Resorts & Entertainment by 1.1% in the 1st quarter. Bleakley Financial Group LLC now owns 264,989 shares of the company’s stock worth $1,911,000 after purchasing an additional 2,961 shares during the last quarter. Blue Trust Inc. increased its holdings in shares of Melco Resorts & Entertainment by 243.4% during the second quarter. Blue Trust Inc. now owns 7,324 shares of the company’s stock valued at $53,000 after purchasing an additional 5,191 shares during the period. Ridgewood Investments LLC bought a new stake in shares of Melco Resorts & Entertainment during the second quarter valued at about $42,000. Headlands Technologies LLC bought a new position in Melco Resorts & Entertainment in the 2nd quarter valued at about $56,000. Finally, Russell Investments Group Ltd. acquired a new position in Melco Resorts & Entertainment during the 1st quarter valued at about $56,000. 39.62% of the stock is owned by hedge funds and other institutional investors.

Melco Resorts & Entertainment Company Profile

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities.