Melco Resorts & Entertainment (NASDAQ:MLCO) Shares Gap Down – Here’s Why

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) gapped down before the market opened on Thursday . The stock had previously closed at $5.52, but opened at $5.19. Melco Resorts & Entertainment shares last traded at $5.5490, with a volume of 380,003 shares.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on MLCO shares. Morgan Stanley downgraded Melco Resorts & Entertainment from an “overweight” rating to a “negative” rating in a research note on Monday, June 22nd. Wall Street Zen cut Melco Resorts & Entertainment from a “buy” rating to a “hold” rating in a research report on Sunday, June 28th. JPMorgan Chase & Co. decreased their target price on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a “neutral” rating on the stock in a research report on Thursday, July 16th. Citigroup cut their price target on shares of Melco Resorts & Entertainment from $10.50 to $9.40 and set a “buy” rating for the company in a report on Friday, July 10th. Finally, CICC Research upgraded shares of Melco Resorts & Entertainment to an “outperform” rating in a research report on Sunday, April 19th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Melco Resorts & Entertainment has an average rating of “Moderate Buy” and an average price target of $7.43.

Melco Resorts & Entertainment Trading Up 0.3%

The business has a 50 day moving average of $5.48 and a 200-day moving average of $5.65. The stock has a market cap of $2.15 billion, a PE ratio of 9.54, a price-to-earnings-growth ratio of 3.47 and a beta of 0.59.

Melco Resorts & Entertainment (NASDAQ:MLCO) last released its quarterly earnings results on Thursday, August 13th. The company reported $0.06 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.06. Melco Resorts & Entertainment had a negative return on equity of 32.60% and a net margin of 4.33%.During the same period in the previous year, the business earned $0.04 earnings per share. The business’s revenue was down 5.7% on a year-over-year basis. On average, equities research analysts anticipate that Melco Resorts & Entertainment Limited will post 0.51 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. FIL Ltd bought a new stake in shares of Melco Resorts & Entertainment in the 4th quarter worth $35,198,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Melco Resorts & Entertainment by 67.3% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 9,198,664 shares of the company’s stock worth $84,352,000 after purchasing an additional 3,700,980 shares in the last quarter. Coronation Fund Managers Ltd. lifted its stake in Melco Resorts & Entertainment by 35.2% during the first quarter. Coronation Fund Managers Ltd. now owns 11,269,346 shares of the company’s stock valued at $64,010,000 after purchasing an additional 2,934,127 shares during the last quarter. Balyasny Asset Management L.P. boosted its holdings in Melco Resorts & Entertainment by 257.8% during the fourth quarter. Balyasny Asset Management L.P. now owns 3,864,347 shares of the company’s stock worth $29,253,000 after buying an additional 2,784,251 shares in the last quarter. Finally, National Bank of Canada FI grew its position in Melco Resorts & Entertainment by 71,281.5% in the third quarter. National Bank of Canada FI now owns 2,206,402 shares of the company’s stock worth $20,233,000 after buying an additional 2,203,311 shares during the last quarter. Institutional investors own 39.62% of the company’s stock.

Melco Resorts & Entertainment Company Profile

Melco Resorts & Entertainment Limited (NASDAQ: MLCO) is a developer, owner and operator of integrated resort destinations in Asia and Europe. The company’s portfolio spans casino gaming, hotel accommodations, retail, dining and entertainment facilities. Melco’s properties feature a mix of luxury hotels, award-winning restaurants, high-limit gaming salons and entertainment venues, catering to a broad range of leisure and business travelers.

In Macau, Melco owns and operates flagship properties including City of Dreams Macau, Altira Macau and Studio City.