Tracinda Corp Declares Ownership of 6.6% Stake in MGM Resorts International (MGM)
recently revealed that they own a 6.6% stake in MGM Resorts International (NYSE:MGM) in a Schedule 13D/A disclosure that was filed with the Securities and Exchange Commission (SEC) on Wednesday, December 6th. The investor owns 37,225,284 shares of the stock valued at approximately $1,263,426,139. The reporting parties listed on the disclosure included Tracinda Corporation and Anthony L Mandekic. The filing is available through Edgar at this hyperlink.
provided the following explanation of their ownership:
Item 4 of the Schedule 13D is hereby amended to add the following information:
On December 4,2017, Tracinda placed an order to sell 10,000,000 shares of the Common Stock, pursuant to Rule 144, at a price of $33.89 per share, which is approximately a 1% discount from the closing price of the Common Stock on that date. The transaction is expected to be settled on December 7,2017. In connection with the sale, Tracinda has agreed to a 45day lockup period with respect to the Common Stock.
Tracinda continues to believe there is substantial value in the assets of MGM Resorts and that the Company is a good long term investment. The decision to sell the shares described above is a product of Tracinda’s ongoing evaluation of alternatives and opportunities for an orderly disposition of its position in the Common Stock, as directed in Mr. Kerkorian’s will.
A number of other institutional investors also recently modified their holdings of MGM. Spirit of America Management Corp NY bought a new position in MGM Resorts International in the third quarter worth approximately $104,000. Sun Life Financial INC bought a new position in MGM Resorts International in the third quarter worth approximately $124,000. Pacad Investment Ltd. bought a new position in MGM Resorts International in the second quarter worth approximately $169,000. Toronto Dominion Bank raised its position 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 acquiring an additional 624 shares during the period. Finally, Steward Partners Investment Advisory LLC bought a new position in MGM Resorts International in the third quarter worth approximately $197,000. Institutional investors own 83.01% of the company’s stock.
MGM has been the topic of several recent research reports. Morgan Stanley set a $34.00 price target on shares of MGM Resorts International and gave the stock a “buy” rating in a research report on Friday, October 13th. Deutsche Bank downgraded shares of MGM Resorts International from a “buy” rating to a “hold” rating and set a $36.00 price target on the stock. in a research report on Monday, September 11th. Nomura reduced their price objective on shares of MGM Resorts International from $38.00 to $37.00 and set a “buy” rating for the company in a research note on Wednesday, November 1st. Roth Capital assumed coverage on shares of MGM Resorts International in a research note on Wednesday, October 25th. They issued a “buy” rating and a $38.00 price objective for the company. Finally, Zacks Investment Research cut shares of MGM Resorts International from a “hold” rating to a “sell” rating in a research note on Wednesday, October 18th. Six analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. The stock has a consensus rating of “Buy” and an average target price of $36.50.
MGM Resorts International (MGM) traded down $0.28 on Wednesday, reaching $33.94. 8,017,200 shares of the company traded hands, compared to its average volume of 8,655,213. The stock has a market capitalization of $19,373.25, a PE ratio of 30.28, a price-to-earnings-growth ratio of 7.78 and a beta of 1.44. MGM Resorts International has a 52 week low of $25.15 and a 52 week high of $34.65. The company has a quick ratio of 0.98, a current ratio of 1.02 and a debt-to-equity ratio of 1.26.
The business also recently announced a quarterly dividend, which will be paid on Friday, December 15th. Investors of record on Monday, December 11th will be paid a dividend of $0.11 per share. The ex-dividend date of this dividend is Friday, December 8th. This represents a $0.44 annualized dividend and a yield of 1.30%. MGM Resorts International’s payout ratio is 43.14%.
MGM Resorts International announced that its board has initiated a stock buyback program on Tuesday, September 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the company to buy up to 5.3% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.
In other MGM Resorts International news, CFO Daniel D’arrigo sold 30,318 shares of MGM Resorts International stock in a transaction on Thursday, September 7th. The shares were sold at an average price of $34.12, for a total value of $1,034,450.16. Following the completion of the transaction, the chief financial officer now directly owns 212,467 shares of the company’s stock, valued at approximately $7,249,374.04. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO James Murren sold 259,760 shares of MGM Resorts International stock in a transaction on Thursday, September 7th. The stock was sold at an average price of $34.19, for a total transaction of $8,881,194.40. Following the completion of the transaction, the chief executive officer now directly owns 71,442 shares of the company’s stock, valued at $2,442,601.98. The disclosure for this sale can be found here. Insiders have sold 735,557 shares of company stock valued at $24,934,279 over the last ninety days. 12.20% of the stock is currently owned by corporate insiders.
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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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