Aberdeen Group plc Raises Stake in MGM Resorts International $MGM

Key Points

• Aberdeen Group plc increased its stake in MGM Resorts International by 118.7%, owning 158,412 shares worth approximately $4.7 million following an additional 85,973 share purchase.
• Analysts have mixed ratings on MGM, with Goldman Sachs initiating coverage with a "sell" rating at a $34.00 target price, while others like Susquehanna raised their price objective from $50.00 to $60.00, indicating varied market sentiment.
• MGM Resorts International reported $0.79 earnings per share for the last quarter, exceeding estimates by $0.21, along with a revenue of $4.40 billion despite a 1.8% increase compared to the previous year.

Aberdeen Group plc lifted its position in shares of MGM Resorts International (NYSE:MGM - Free Report) by 118.7% during the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 158,412 shares of the company's stock after buying an additional 85,973 shares during the period. Aberdeen Group plc owned 0.06% of MGM Resorts International worth $4,703,000 as of its most recent SEC filing.

A number of other hedge funds have also recently bought and sold shares of MGM. Davis Selected Advisers raised 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 valued at $616,958,000 after acquiring an additional 894,344 shares during the last quarter. Invesco Ltd. increased its stake in MGM Resorts International by 7.7% in the first quarter. Invesco Ltd. now owns 6,233,213 shares of the company's stock valued at $184,752,000 after purchasing an additional 447,870 shares during the last quarter. Southeastern Asset Management Inc. TN increased its stake in MGM Resorts International by 9.6% in the fourth quarter. Southeastern Asset Management Inc. TN now owns 2,409,147 shares of the company's stock valued at $83,477,000 after purchasing an additional 211,245 shares during the last quarter. Northern Trust Corp lifted its position in MGM Resorts International by 15.1% during the fourth quarter. Northern Trust Corp now owns 2,315,748 shares of the company's stock worth $80,241,000 after buying an additional 303,711 shares during the period. Finally, Eminence Capital LP acquired a new stake in MGM Resorts International in the 4th quarter worth about $72,408,000. Institutional investors and hedge funds own 68.11% of the company's stock.

Analyst Ratings Changes

MGM has been the subject of a number of research analyst reports. Citizens Jmp downgraded shares of MGM Resorts International from an "outperform" rating to a "market perform" rating in a research note on Thursday, June 26th. The Goldman Sachs Group began coverage on shares of MGM Resorts International in a report on Monday, July 7th. They issued a "sell" rating and a $34.00 target price for the company. Macquarie dropped their price target on shares of MGM Resorts International from $50.00 to $48.00 and set an "outperform" rating for the company in a research report on Friday, May 2nd. UBS Group lifted their price target on shares of MGM Resorts International from $37.00 to $42.00 and gave the company a "neutral" rating in a report on Tuesday, July 8th. Finally, Susquehanna boosted their price objective on shares of MGM Resorts International from $50.00 to $60.00 and gave the company a "positive" rating in a research note on Tuesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $48.72.

MGM Resorts International Trading Down 1.1%

NYSE MGM opened at $36.30 on Thursday. The firm has a market capitalization of $9.88 billion, a price-to-earnings ratio of 19.95, a PEG ratio of 1.73 and a beta of 1.81. The company has a debt-to-equity ratio of 1.67, a quick ratio of 1.18 and a current ratio of 1.22. MGM Resorts International has a one year low of $25.30 and a one year high of $42.53. The company's 50 day moving average price is $36.06 and its 200 day moving average price is $33.59.

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

MGM Resorts International announced that its Board of Directors has approved a stock repurchase plan on Wednesday, April 30th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 22.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its stock is undervalued.

Insider Transactions at MGM Resorts International

In other MGM Resorts International news, Director Keith A. Meister sold 60,000 shares of the firm's 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 transaction, the director directly owned 5,627,478 shares of the company's stock, valued at $180,585,769.02. This trade represents a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 3.06% of the company's stock.

MGM Resorts International Profile

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.

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