Fox Run Management L.L.C. Makes New Investment in MGM Resorts International $MGM

Key Points

• Fox Run Management L.L.C. purchased 31,255 shares of MGM Resorts International, valued at approximately $926,000, in the first quarter, indicating increased institutional interest in the company.
• MGM Resorts reported a $0.79 EPS for the last quarter, surpassing expectations and reflecting a 1.8% year-over-year revenue increase to $4.40 billion.
• The company has announced a $2.00 billion stock buyback program, indicating management's belief that the stock is undervalued.

Fox Run Management L.L.C. acquired a new stake in shares of MGM Resorts International (NYSE:MGM - Free Report) during the first quarter, according to its most recent disclosure with the SEC. The fund acquired 31,255 shares of the company's stock, valued at approximately $926,000.

A number of other large investors also recently added to or reduced their stakes in the business. Davis Selected Advisers lifted its holdings in MGM Resorts International by 4.5% in the 1st quarter. Davis Selected Advisers now owns 20,815,057 shares of the company's stock worth $616,958,000 after purchasing an additional 894,344 shares in the last quarter. Invesco Ltd. lifted its holdings in MGM Resorts International by 7.7% in the 1st quarter. Invesco Ltd. now owns 6,233,213 shares of the company's stock worth $184,752,000 after purchasing an additional 447,870 shares in the last quarter. Southeastern Asset Management Inc. TN lifted its holdings in MGM Resorts International by 9.6% in the 4th quarter. Southeastern Asset Management Inc. TN now owns 2,409,147 shares of the company's stock worth $83,477,000 after purchasing an additional 211,245 shares in the last quarter. Northern Trust Corp lifted its holdings in MGM Resorts International by 15.1% in the 4th quarter. Northern Trust Corp now owns 2,315,748 shares of the company's stock worth $80,241,000 after purchasing an additional 303,711 shares in the last quarter. Finally, Eminence Capital LP purchased a new stake in shares of MGM Resorts International during the 4th quarter worth approximately $72,408,000. 68.11% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other MGM Resorts International news, Director Keith A. Meister sold 60,000 shares of the stock in a transaction dated Friday, June 13th. The stock was sold at an average price of $32.09, for a total value of $1,925,400.00. Following the completion of the sale, the director directly owned 5,627,478 shares in the company, valued at approximately $180,585,769.02. This trade represents a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 3.06% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on MGM. Morgan Stanley upped their price objective on MGM Resorts International from $38.00 to $41.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 6th. Macquarie decreased their price objective on MGM Resorts International from $50.00 to $48.00 and set an "outperform" rating on the stock in a report on Friday, May 2nd. Truist Financial upped their price objective on MGM Resorts International from $45.00 to $50.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. The Goldman Sachs Group started coverage on MGM Resorts International in a research report on Monday, July 7th. They set a "sell" rating and a $34.00 target price on the stock. Finally, JPMorgan Chase & Co. started coverage on MGM Resorts International in a research report on Monday, June 23rd. They set a "neutral" rating and a $38.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $48.72.

MGM Resorts International Stock Up 1.4%

Shares of MGM traded up $0.5010 during midday trading on Tuesday, reaching $36.6810. 4,084,603 shares of the stock were exchanged, compared to its average volume of 5,358,305. The company has a current ratio of 1.22, a quick ratio of 1.18 and a debt-to-equity ratio of 1.67. The company has a market capitalization of $9.98 billion, a P/E ratio of 20.15, a PEG ratio of 1.69 and a beta of 1.81. MGM Resorts International has a 52 week low of $25.30 and a 52 week high of $42.53. The company's 50 day moving average is $35.93 and its two-hundred day moving average is $33.55.

MGM Resorts International (NYSE:MGM - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.79 earnings per share for the quarter, topping analysts' consensus estimates of $0.58 by $0.21. The firm had revenue of $4.40 billion during the quarter, compared to analysts' expectations of $4.28 billion. MGM Resorts International had a return on equity of 19.39% and a net margin of 3.13%.The firm's quarterly revenue was up 1.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.86 EPS. On average, sell-side analysts anticipate that MGM Resorts International will post 2.21 earnings per share for the current year.

MGM Resorts International declared that its Board of Directors has initiated a stock repurchase program on Wednesday, April 30th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to repurchase up to 22.4% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.