Weekly Investment Analysts’ Ratings Updates for MGM Resorts International (MGM)
Several brokerages have updated their recommendations and price targets on shares of MGM Resorts International (NYSE: MGM) in the last few weeks:
- 7/30/2017 – MGM Resorts International had its “buy” rating reaffirmed by analysts at Deutsche Bank AG. They now have a $36.00 price target on the stock, up previously from $34.00.
- 7/28/2017 – MGM Resorts International had its price target raised by analysts at Telsey Advisory Group from $36.00 to $39.00. They now have an “outperform” rating on the stock.
- 7/28/2017 – MGM Resorts International was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. 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.”
- 7/25/2017 – MGM Resorts International was upgraded by analysts at BidaskClub from a “buy” rating to a “strong-buy” rating.
- 7/17/2017 – MGM Resorts International had its “buy” rating reaffirmed by analysts at Instinet.
- 7/10/2017 – MGM Resorts International had its “overweight” rating reaffirmed by analysts at Morgan Stanley. They now have a $34.00 price target on the stock, up previously from $33.00.
- 7/10/2017 – MGM Resorts International had its “buy” rating reaffirmed by analysts at UBS AG.
- 7/3/2017 – MGM Resorts International had its “buy” rating reaffirmed by analysts at Deutsche Bank AG. They now have a $34.00 price target on the stock.
- 7/3/2017 – MGM Resorts International had its “buy” rating reaffirmed by analysts at Instinet. They now have a $40.00 price target on the stock.
- 7/1/2017 – MGM Resorts International was downgraded by analysts at BidaskClub from a “strong-buy” rating to a “buy” rating.
- 6/28/2017 – MGM Resorts International was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “MGM Resorts’ shares underperformed the Zacks classified Gaming industry year to date. A tough operating environment in Macau weighed on MGM Resorts’ revenues since Jun 2014 to the most part of 2016. Though revival of gaming revenues in Macau is a huge positive, it will take time for the region to return to its former glory as concerns related to sustainability of revenues from the VIP market linger. In fact, in Q1 2017, though revenues at MGM China increased 7%, VIP table games revenues declined 5% as turnover plunged 16%. Meanwhile, the company’s strong portfolio and focus on non-gaming activities could offset the impact of these headwinds to some extent. Moreover, the Las Vegas business is doing well on the back of the ongoing economic recovery and growing tourism in the region, which should drive incremental revenues at properties there. However, heightened competition and increased debt pressure are causes of concern.”
- 6/19/2017 – MGM Resorts International had its “buy” rating reaffirmed by analysts at Instinet. They now have a $40.00 price target on the stock, up previously from $35.00.
Shares of MGM Resorts International (MGM) opened at 33.14 on Monday. The stock’s 50 day moving average is $32.57 and its 200-day moving average is $29.74. The firm has a market cap of $19.06 billion, a PE ratio of 19.61 and a beta of 1.47. MGM Resorts International has a 52 week low of $23.38 and a 52 week high of $34.53.
MGM Resorts International (NYSE:MGM) last released its earnings results on Thursday, July 27th. The company reported $0.31 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.28 by $0.03. The business had revenue of $2.64 billion for the quarter, compared to analyst estimates of $2.67 billion. MGM Resorts International had a return on equity of 7.97% and a net margin of 9.26%. The company’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.29 earnings per share. On average, equities analysts predict that MGM Resorts International will post $1.27 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 15th. Stockholders of record on Monday, September 11th will be issued a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.33%. The ex-dividend date of this dividend is Friday, September 8th. MGM Resorts International’s payout ratio is currently 26.04%.
In other news, Director Rose Mckinney-James sold 880 shares of the business’s stock in a transaction that occurred on Wednesday, May 3rd. The stock was sold at an average price of $30.95, for a total value of $27,236.00. Following the transaction, the director now owns 100 shares of the company’s stock, valued at $3,095. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Corey Ian Sanders sold 21,441 shares of the business’s stock in a transaction that occurred on Monday, May 15th. The shares were sold at an average price of $31.60, for a total value of $677,535.60. Following the completion of the transaction, the chief operating officer now directly owns 210,558 shares in the company, valued at approximately $6,653,632.80. The disclosure for this sale can be found here. In the last three months, insiders sold 42,367 shares of company stock worth $1,334,623. Corporate insiders own 12.20% of the company’s stock.
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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