MGM Resorts International (NYSE:MGM) Shares Gap Down Following Weak Earnings

MGM Resorts International (NYSE:MGM) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $41.41, but opened at $38.77. MGM Resorts International shares last traded at $37.76, with a volume of 1,493,586 shares trading hands.

The company reported $0.54 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.04). The firm had revenue of $4.18 billion during the quarter, compared to the consensus estimate of $4.21 billion. MGM Resorts International had a return on equity of 26.36% and a net margin of 5.15%. MGM Resorts International’s revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.64 EPS.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on MGM shares. Macquarie lowered their target price on shares of MGM Resorts International from $58.00 to $55.00 and set an “outperform” rating for the company in a report on Friday, August 2nd. Stifel Nicolaus boosted their target price on MGM Resorts International from $60.00 to $63.00 and gave the stock a “buy” rating in a report on Thursday, August 1st. UBS Group upgraded MGM Resorts International to a “hold” rating in a report on Friday, August 23rd. Deutsche Bank Aktiengesellschaft dropped their price target on shares of MGM Resorts International from $57.00 to $52.00 and set a “buy” rating on the stock in a research note on Tuesday, October 1st. Finally, Wells Fargo & Company reduced their price objective on shares of MGM Resorts International from $53.00 to $47.00 and set an “overweight” rating for the company in a research note on Thursday, October 17th. Four analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $53.15.

Insider Buying and Selling at MGM Resorts International

In other MGM Resorts International news, CEO William Hornbuckle acquired 58,900 shares of the company’s stock in a transaction that occurred on Monday, August 5th. The shares were bought at an average price of $33.73 per share, with a total value of $1,986,697.00. Following the completion of the acquisition, the chief executive officer now owns 377,112 shares in the company, valued at $12,719,987.76. This represents a 0.00 % increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, CEO William Hornbuckle purchased 58,900 shares of the business’s stock in a transaction on Monday, August 5th. The stock was acquired at an average price of $33.73 per share, with a total value of $1,986,697.00. Following the completion of the acquisition, the chief executive officer now owns 377,112 shares of the company’s stock, valued at approximately $12,719,987.76. This trade represents a 0.00 % increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Paul J. Salem acquired 147,500 shares of the firm’s stock in a transaction dated Monday, August 5th. The stock was bought at an average cost of $33.80 per share, for a total transaction of $4,985,500.00. Following the purchase, the director now directly owns 1,702,500 shares of the company’s stock, valued at approximately $57,544,500. This trade represents a 0.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders bought a total of 216,400 shares of company stock worth $7,312,197 in the last three months. 2.13% of the stock is currently owned by company insiders.

Institutional Trading of MGM Resorts International

Hedge funds and other institutional investors have recently modified their holdings of the company. ACR Alpine Capital Research LLC bought a new position in MGM Resorts International in the 1st quarter worth $3,922,000. Marshall Wace LLP boosted its stake in shares of MGM Resorts International by 174.8% in the second quarter. Marshall Wace LLP now owns 1,110,040 shares of the company’s stock worth $49,330,000 after acquiring an additional 706,159 shares during the period. Maverick Capital Ltd. purchased a new stake in shares of MGM Resorts International during the second quarter worth about $1,211,000. Texas Permanent School Fund Corp boosted its stake in MGM Resorts International by 0.4% in the 1st quarter. Texas Permanent School Fund Corp now owns 56,487 shares of the company’s stock worth $2,667,000 after purchasing an additional 245 shares during the period. Finally, Wedge Capital Management L L P NC purchased a new stake in MGM Resorts International during the 2nd quarter valued at approximately $3,314,000. 68.11% of the stock is owned by hedge funds and other institutional investors.

MGM Resorts International Stock Performance

The firm’s 50-day moving average price is $38.50 and its 200-day moving average price is $40.24. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.47 and a quick ratio of 1.42. The stock has a market cap of $11.20 billion, a P/E ratio of 14.18, a PEG ratio of 0.97 and a beta of 2.23.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.