Davis Selected Advisers Grows Holdings in MGM Resorts International (NYSE:MGM)

Key Points

• Davis Selected Advisers increased its stake in MGM Resorts International by 4.5%, now holding over 20.8 million shares, making it the fund's 9th largest holding.
• MGM Resorts International recently reported earnings of $0.79 per share, surpassing analysts' estimates, and had a revenue of $4.40 billion for the quarter.
• The company announced a $2 billion stock buyback plan, indicating management believes the shares are undervalued.

Davis Selected Advisers boosted its holdings in shares of MGM Resorts International (NYSE:MGM - Free Report) by 4.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 20,815,057 shares of the company's stock after buying an additional 894,344 shares during the quarter. MGM Resorts International makes up approximately 3.6% of Davis Selected Advisers' investment portfolio, making the stock its 9th largest position. Davis Selected Advisers owned approximately 7.65% of MGM Resorts International worth $616,958,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of MGM. Mascagni Wealth Management Inc. acquired a new position in shares of MGM Resorts International during the 4th quarter worth approximately $28,000. Golden State Wealth Management LLC boosted its position in MGM Resorts International by 83.5% during the first quarter. Golden State Wealth Management LLC now owns 1,000 shares of the company's stock worth $30,000 after purchasing an additional 455 shares during the period. True Wealth Design LLC acquired a new position in shares of MGM Resorts International in the fourth quarter valued at $33,000. CX Institutional bought a new position in shares of MGM Resorts International in the first quarter valued at about $36,000. Finally, Bayforest Capital Ltd bought a new position in shares of MGM Resorts International in the first quarter valued at about $43,000. Institutional investors own 68.11% of the company's stock.

Insider Buying and Selling at MGM Resorts International

In other MGM Resorts International news, COO Corey Ian Sanders sold 40,000 shares of the company's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $34.43, for a total value of $1,377,200.00. Following the completion of the transaction, the chief operating officer directly owned 281,530 shares in the company, valued at approximately $9,693,077.90. This represents a 12.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Keith A. Meister sold 60,000 shares of the company's stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $32.09, for a total transaction of $1,925,400.00. Following the completion of the transaction, the director owned 5,627,478 shares of the company's stock, valued at approximately $180,585,769.02. This trade represents a 1.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 105,261 shares of company stock worth $3,486,367. 3.06% of the stock is currently owned by company insiders.

MGM Resorts International Price Performance

MGM stock traded down $0.53 during trading on Friday, reaching $34.18. 3,178,642 shares of the company were exchanged, compared to its average volume of 5,134,176. The company has a debt-to-equity ratio of 1.67, a current ratio of 1.22 and a quick ratio of 1.18. MGM Resorts International has a twelve month low of $25.30 and a twelve month high of $42.53. The company has a 50-day moving average of $35.45 and a two-hundred day moving average of $33.46. The company has a market capitalization of $9.30 billion, a price-to-earnings ratio of 18.78, a P/E/G ratio of 1.61 and a beta of 1.81.

MGM Resorts International (NYSE:MGM - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $0.79 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $4.40 billion during the quarter, compared to analysts' expectations of $4.28 billion. During the same period in the prior year, the company posted $0.86 EPS. The company's revenue was up 1.8% on a year-over-year basis. As a group, equities analysts predict that MGM Resorts International will post 2.21 earnings per share for the current fiscal year.

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

Wall Street Analyst Weigh In

MGM has been the topic of a number of research reports. Wall Street Zen upgraded shares of MGM Resorts International from a "sell" rating to a "hold" rating in a research note on Thursday, May 22nd. Citizens Jmp lowered shares of MGM Resorts International from an "outperform" rating to a "market perform" rating in a research note on Thursday, June 26th. Macquarie decreased their price target on shares of MGM Resorts International from $50.00 to $48.00 and set an "outperform" rating on the stock in a research note on Friday, May 2nd. Stifel Nicolaus boosted their price objective on shares of MGM Resorts International from $48.00 to $50.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Finally, The Goldman Sachs Group started coverage on shares of MGM Resorts International in a report on Monday, July 7th. They issued a "sell" rating and a $34.00 price objective for the company. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $48.72.

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.