Melco Resorts & Entertainment (NASDAQ:MLCO) Sets New 12-Month Low – Here’s Why

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) reached a new 52-week low on Monday. The company traded as low as $4.05 and last traded at $4.0550, with a volume of 409,699 shares traded. The stock had previously closed at $4.15.

Analyst Ratings Changes

MLCO has been the topic of several analyst reports. Wall Street Zen lowered Melco Resorts & Entertainment from a “buy” rating to a “hold” rating in a report on Sunday, June 28th. CLSA raised shares of Melco Resorts & Entertainment from a “hold” rating to an “outperform” rating and dropped their price objective for the company from $6.10 to $6.00 in a report on Friday, July 10th. JPMorgan Chase & Co. cut their price objective on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a “neutral” rating for the company in a research report on Thursday, July 16th. Piper Sandler set a $5.50 price objective on shares of Melco Resorts & Entertainment in a research report on Friday. Finally, CICC Research downgraded shares of Melco Resorts & Entertainment from an “outperform” rating to a “market perform” rating in a research note on Sunday. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $6.83.

Melco Resorts & Entertainment Stock Up 0.2%

The firm has a market cap of $1.57 billion, a price-to-earnings ratio of 6.87, a PEG ratio of 3.17 and a beta of 0.49. The company’s 50-day moving average price is $4.82 and its 200-day moving average price is $5.29.

Melco Resorts & Entertainment (NASDAQ:MLCO) last released its earnings results on Thursday, August 13th. The company reported $0.06 EPS for the quarter, hitting the consensus estimate of $0.06. The firm had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Melco Resorts & Entertainment had a negative return on equity of 23.81% and a net margin of 4.50%. Melco Resorts & Entertainment’s revenue for the quarter was down 5.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.04 EPS. On average, sell-side analysts predict that Melco Resorts & Entertainment Limited will post 0.41 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Melco Resorts & Entertainment

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MLCO. Coronation Fund Managers Ltd. grew its position 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 acquiring an additional 2,934,127 shares during the period. Renaissance Technologies LLC boosted its stake in shares of Melco Resorts & Entertainment by 7.9% in the first quarter. Renaissance Technologies LLC now owns 4,461,600 shares of the company’s stock valued at $25,342,000 after purchasing an additional 325,900 shares during the period. Bank of America Corp DE boosted its position in Melco Resorts & Entertainment by 177.7% in the 1st quarter. Bank of America Corp DE now owns 890,787 shares of the company’s stock valued at $5,060,000 after buying an additional 570,060 shares during the last quarter. Bleakley Financial Group LLC grew its stake in Melco Resorts & Entertainment by 29.8% during the 1st quarter. Bleakley Financial Group LLC now owns 461,487 shares of the company’s stock valued at $2,621,000 after purchasing an additional 105,887 shares in the last quarter. Finally, SG Americas Securities LLC grew its position in shares of Melco Resorts & Entertainment by 190.9% during the first quarter. SG Americas Securities LLC now owns 461,100 shares of the company’s stock worth $2,619,000 after buying an additional 302,609 shares in the last quarter. Hedge funds and other institutional investors own 39.62% of the company’s stock.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited is a developer, owner and operator of integrated resort facilities focused on gaming, hospitality, entertainment, dining, retail and convention services. The company’s properties combine casinos with luxury hotels, restaurants, shopping areas, theaters and other leisure attractions.

Melco operates several major resorts in Macau, including City of Dreams, Altira Macau and Studio City. Its Macau operations also include the Mocha Clubs electronic gaming-machine business.