MGM Resorts International (NYSE:MGM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.

According to Zacks, “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, still it will take some time for the company to fully capitalize on it. In the second quarter, revenues at MGM China fell 1% due to lower revenues from main-floor table games. In fact, MGM Resorts’ shares have underperformed the industry year to date. Estimates too have been going down ahead of its third quarter earnings release. However, strong portfolio and focus on non-gaming activities could offset the headwinds to some extent. Moreover, the company’s properties in Las Vegas should continue to cash in on the favorable trends of improving employment rate and positive tourism numbers in the region. Also, it has mostly positive record of earnings surprises in recent quarters. Yet, heightened competition and increased debt pressure are concerns.”

Several other brokerages also recently issued reports on MGM. BidaskClub downgraded shares of MGM Resorts International from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, August 1st. Instinet reaffirmed a “buy” rating on shares of MGM Resorts International in a research note on Monday, July 17th. Susquehanna Bancshares Inc reaffirmed a “neutral” rating and set a $33.00 price target (down previously from $38.00) on shares of MGM Resorts International in a research note on Tuesday, October 3rd. Barclays PLC reaffirmed an “overweight” rating on shares of MGM Resorts International in a research note on Monday, October 2nd. Finally, Stifel Nicolaus downgraded shares of MGM Resorts International from a “buy” rating to a “hold” rating and decreased their price target for the company from $38.00 to $33.00 in a research note on Wednesday. One research analyst has rated the stock with a sell rating, five have given a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus price target of $35.40.

Shares of MGM Resorts International (MGM) traded up 0.89% on Wednesday, reaching $30.75. The company had a trading volume of 1,553,654 shares. The firm has a market capitalization of $17.69 billion, a price-to-earnings ratio of 18.21 and a beta of 1.46. MGM Resorts International has a 52 week low of $25.15 and a 52 week high of $34.65. The stock’s 50 day moving average is $31.83 and its 200 day moving average is $31.44.

MGM Resorts International (NYSE:MGM) last announced its quarterly earnings data on Thursday, July 27th. The company reported $0.31 earnings per share (EPS) for the quarter, topping 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 net margin of 9.26% and a return on equity of 7.97%. The firm’s quarterly revenue was up 16.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.29 earnings per share. On average, equities analysts anticipate that MGM Resorts International will post $1.28 EPS for the current year.

MGM Resorts International declared that its board has initiated a stock buyback program on Tuesday, September 5th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to repurchase up to 5.3% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

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In other MGM Resorts International news, insider Robert Baldwin sold 49,179 shares of MGM Resorts International stock in a transaction on Monday, September 11th. The shares were sold at an average price of $33.13, for a total value of $1,629,300.27. Following the transaction, the insider now directly owns 145,105 shares of the company’s stock, valued at $4,807,328.65. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO James Murren sold 57,269 shares of MGM Resorts International stock in a transaction on Monday, July 31st. The stock was sold at an average price of $33.05, for a total transaction of $1,892,740.45. Following the completion of the transaction, the chief executive officer now directly owns 1,231,611 shares in the company, valued at $40,704,743.55. The disclosure for this sale can be found here. Insiders sold 819,831 shares of company stock worth $27,686,927 over the last ninety days. Corporate insiders own 12.20% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Pacad Investment Ltd. purchased a new position in MGM Resorts International in the second quarter worth $169,000. Toronto Dominion Bank grew its holdings in MGM Resorts International by 12.4% in the second quarter. Toronto Dominion Bank now owns 5,644 shares of the company’s stock worth $177,000 after purchasing an additional 624 shares during the last quarter. Global X Management Co. LLC grew its holdings 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 purchasing an additional 1,724 shares during the last quarter. Colony Group LLC purchased a new position in MGM Resorts International in the second quarter worth $203,000. Finally, Cigna Investments Inc. New purchased a new position in MGM Resorts International in the second quarter worth $206,000. 75.21% of the stock is currently owned by institutional investors and hedge funds.

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.

Analyst Recommendations for MGM Resorts International (NYSE:MGM)

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