Davis Selected Advisers Boosts Stock Position in MGM Resorts International $MGM

Key Points

• Davis Selected Advisers boosted its position in MGM by 12% in Q4, buying an extra 2,866,750 shares to hold 26,820,202 shares — roughly a 9.81% stake valued at about $978.7 million, making MGM its 7th-largest holding.
• MGM's Q1 showed a revenue beat ($4.45B, +4.2% Y/Y) but an EPS miss ($0.49 vs ~$0.56 consensus), with margin pressure, high leverage (debt/equity ~1.9) and mixed analyst actions that leave the stock with an average "Hold" rating.

Davis Selected Advisers lifted its position in shares of MGM Resorts International (NYSE:MGM - Free Report) by 12.0% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 26,820,202 shares of the company's stock after buying an additional 2,866,750 shares during the quarter. MGM Resorts International makes up 4.4% of Davis Selected Advisers' holdings, making the stock its 7th largest holding. Davis Selected Advisers owned about 9.81% of MGM Resorts International worth $978,669,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. CYBER HORNET ETFs LLC bought a new position in shares of MGM Resorts International during the 2nd quarter worth $25,000. Mather Group LLC. bought a new position in shares of MGM Resorts International during the 3rd quarter worth $33,000. City Holding Co. bought a new position in shares of MGM Resorts International during the 4th quarter worth $44,000. Stance Capital LLC bought a new position in shares of MGM Resorts International during the 3rd quarter worth $46,000. Finally, Advisory Services Network LLC bought a new position in shares of MGM Resorts International during the 3rd quarter worth $52,000. Institutional investors own 68.11% of the company's stock.

MGM Resorts International Price Performance

Shares of MGM stock opened at $38.58 on Friday. MGM Resorts International has a 1-year low of $29.18 and a 1-year high of $40.94. The stock's 50-day moving average is $37.14 and its 200 day moving average is $35.38. The company has a market cap of $9.87 billion, a P/E ratio of 53.58 and a beta of 1.28. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.33 and a quick ratio of 1.20.

MGM Resorts International (NYSE:MGM - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The company reported $0.49 earnings per share for the quarter, missing analysts' consensus estimates of $0.56 by ($0.07). The company had revenue of $4.45 billion for the quarter, compared to the consensus estimate of $4.37 billion. MGM Resorts International had a net margin of 1.03% and a return on equity of 24.43%. MGM Resorts International's revenue for the quarter was up 4.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.69 EPS. Research analysts predict that MGM Resorts International will post 2.03 earnings per share for the current fiscal year.

Analysts Set New Price Targets

MGM has been the topic of a number of recent research reports. Barclays increased their price target on MGM Resorts International from $37.00 to $39.00 and gave the stock an "equal weight" rating in a research report on Thursday. Jefferies Financial Group downgraded MGM Resorts International from a "buy" rating to a "hold" rating and dropped their price objective for the company from $50.00 to $44.00 in a research report on Friday. Susquehanna dropped their price objective on MGM Resorts International from $46.00 to $45.00 and set a "positive" rating on the stock in a research report on Friday, February 6th. Berenberg Bank reaffirmed a "buy" rating on shares of MGM Resorts International in a research report on Wednesday, February 11th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of MGM Resorts International in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $47.12.

MGM Resorts International News Summary

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

• Positive Sentiment: Q1 revenue beat and record net revenues driven by digital and China growth — company reported $4.45B in revenue (+4.2% Y/Y) with management citing digital and China as growth engines. MGM Q1 Earnings (Yahoo)
• Positive Sentiment: MGM China strong quarterly results and Macau recovery — MGM China reported double-digit revenue growth and higher visitor arrivals, supporting the group’s Asia exposure. MGM China Q1 (PR Newswire)
• Positive Sentiment: Las Vegas momentum: management highlighted stronger convention bookings and first-year-on-year Las Vegas net revenue growth in Q1 after tough comparables. Las Vegas uptick (HotelDive)
• Neutral Sentiment: Mixed analyst actions — several houses adjusted targets and ratings (Goldman raised PT but kept a sell, JPMorgan and Citi trimmed PTs but kept neutral, Truist lifted its PT to $42). These conflicting signals create uneven analyst guidance. Analyst moves (MarketScreener)
• Neutral Sentiment: Earnings-call tone: management said growth engines “beat headwinds” but also flagged cost pressures; investors must judge sustainability of revenue mix versus margin headwinds. Earnings call recap (TipRanks)
• Negative Sentiment: EPS miss and margin pressure — non-GAAP EPS of $0.49 missed consensus (~$0.56), and EBITDA in Las Vegas declined due to higher costs, which pressured the stock. Earnings details (Yahoo)
• Negative Sentiment: Jefferies downgraded MGM to Hold (from Buy), cutting its PT to $44 and citing concerns about the company’s capital structure and limited near-term growth — a clear negative that likely influenced selling. Jefferies downgrade (Yahoo/Investing)
• Negative Sentiment: Ongoing leverage and margin uncertainty — analysts and investors remain focused on debt levels (debt/equity ~1.9) and whether free cash flow will improve fast enough to justify higher valuations. Q1 metrics (Yahoo)

Insider Activity

In other MGM Resorts International news, major shareholder Iac Inc. purchased 450,000 shares of the stock in a transaction on Tuesday, March 24th. The stock was acquired at an average price of $37.13 per share, with a total value of $16,708,500.00. Following the completion of the acquisition, the insider owned 66,822,350 shares in the company, valued at $2,481,113,855.50. The trade was a 0.68% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Keith A. Meister sold 37,500 shares of the firm's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $34.27, for a total value of $1,285,125.00. Following the completion of the sale, the director directly owned 5,347,978 shares of the company's stock, valued at approximately $183,275,206.06. This represents a 0.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 3.38% of the stock is currently owned by company insiders.

MGM Resorts International Company Profile

MGM Resorts International is a leading global hospitality and entertainment company that develops, owns and operates destination resorts, hotels and casinos. Its properties feature integrated gaming floors alongside luxury accommodations, fine dining and retail outlets, live entertainment venues and convention facilities. The company also offers loyalty programs, sports betting and digital gaming experiences to enhance guest engagement and drive repeat visitation.

The company traces its heritage to the opening of the original MGM Grand Hotel & Casino on the Las Vegas Strip in 1973.

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