MGM Resorts International (NYSE:MGM) Now Covered by Bank of America

Key Points

• Bank of America initiated coverage of MGM Resorts with a “neutral” rating and a $40 price target, implying approximately 17.3% upside from the cited share price.
• Analyst opinions remain mixed, but the overall consensus is “Moderate Buy” with an average price target of $52.24; targets range from Goldman Sachs’ $43 “sell” view to Capital One’s $57 “overweight” rating.
• MGM reported quarterly earnings of $0.59 per share, exceeding the $0.56 consensus estimate, while institutional investors held approximately 68.11% of the stock.

Analysts at Bank of America began coverage on shares of MGM Resorts International (NYSE:MGM - Get Free Report) in a research report issued to clients and investors on Thursday. The brokerage set a "neutral" rating and a $40.00 price target on the stock. Bank of America's price target suggests a potential upside of 17.31% from the stock's current price.

Other research analysts also recently issued reports about the company. The Goldman Sachs Group restated a "sell" rating and set a $43.00 price objective on shares of MGM Resorts International in a report on Wednesday, July 15th. Wells Fargo & Company raised shares of MGM Resorts International from an "underweight" rating to an "equal weight" rating and upped their price target for the stock from $33.00 to $48.30 in a research report on Tuesday, July 7th. Mizuho set a $55.00 price objective on shares of MGM Resorts International in a report on Thursday. Capital One Financial upped their price objective on MGM Resorts International from $53.00 to $57.00 and gave the stock an "overweight" rating in a research note on Monday. Finally, UBS Group reduced their target price on shares of MGM Resorts International from $50.00 to $46.00 and set a "neutral" rating for the company in a report on Friday, September 11th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $52.24.

MGM Resorts International Price Performance

Shares of MGM Resorts International stock traded down $3.75 during trading hours on Thursday, reaching $34.10. The company's stock had a trading volume of 2,184,574 shares, compared to its average volume of 4,129,720. The stock has a market cap of $8.58 billion, a P/E ratio of 20.65, a P/E/G ratio of 1.99 and a beta of 1.28. MGM Resorts International has a one year low of $29.18 and a one year high of $51.59. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.34 and a quick ratio of 1.30. The firm has a 50 day moving average price of $42.88 and a 200-day moving average price of $41.81.

MGM Resorts International (NYSE:MGM - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.03. The business had revenue of $4.45 billion for the quarter, compared to the consensus estimate of $4.42 billion. MGM Resorts International had a net margin of 2.40% and a return on equity of 23.30%. The business's revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.79 earnings per share. On average, analysts predict that MGM Resorts International will post 1.96 EPS for the current year.

Institutional Investors Weigh In On MGM Resorts International

A number of large investors have recently added to or reduced their stakes in MGM. State Street Corp boosted its position in MGM Resorts International by 0.8% during the second quarter. State Street Corp now owns 7,047,768 shares of the company's stock worth $336,954,000 after acquiring an additional 56,072 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of MGM Resorts International by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 5,224,452 shares of the company's stock valued at $190,295,000 after buying an additional 49,613 shares during the period. Montanova Capital LLC raised its position in shares of MGM Resorts International by 7.7% in the 2nd quarter. Montanova Capital LLC now owns 2,325,360 shares of the company's stock worth $111,175,000 after buying an additional 166,560 shares during the period. Dimensional Fund Advisors LP boosted its holdings in MGM Resorts International by 1.6% in the first quarter. Dimensional Fund Advisors LP now owns 2,379,727 shares of the company's stock valued at $88,050,000 after acquiring an additional 36,649 shares during the last quarter. Finally, Norges Bank acquired a new stake in MGM Resorts International during the fourth quarter worth about $82,348,000. 68.11% of the stock is owned by institutional investors and hedge funds.

Key MGM Resorts International News

Here are the key news stories impacting MGM Resorts International this week:

• Positive Sentiment: Capital One raised its price target on MGM from $53 to $57 and maintained an “overweight” rating, implying substantial upside from the current trading level.
• Positive Sentiment: Susquehanna lowered its target from $55 to $46 but retained a positive rating, indicating that analysts still see meaningful upside despite the failed deal.
• Neutral Sentiment: MGM’s board confirmed its commitment to executing the company’s strategy as a standalone business after People Inc. withdrew its proposal. MGM Resorts board confirms standalone strategy
• Negative Sentiment: The failed takeover eliminates the immediate possibility of a deal near the reported $48.30-per-share proposal, likely weighing on investor expectations and the stock’s valuation. Barry Diller withdraws MGM bid
• Negative Sentiment: A securities law firm announced an investigation related to Diller’s proposal, adding a potential legal and governance overhang. The announcement is an investigation notice, not a finding of wrongdoing. MGM investor investigation announcement

About MGM Resorts International

MGM Resorts International is a global hospitality and entertainment company that owns and operates destination resorts, casinos, hotels, restaurants, convention facilities and live-entertainment venues. Its properties offer casino gaming, hotel accommodations, dining, nightlife, retail, spa services, sporting events and other leisure activities.

The company operates a portfolio of resorts in Las Vegas and other U.S. markets, including properties associated with brands such as MGM Grand, Bellagio, ARIA, Mandalay Bay, Park MGM, New York-New York and MGM National Harbor.

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