Factorial Partners LLC Has $3.50 Million Holdings in MGM Resorts International (NYSE:MGM)

Key Points

• Factorial Partners LLC increased its stake in MGM Resorts International by 521.1%, owning 118,000 shares after acquiring an additional 99,000 shares during the first quarter, which amounted to approximately $3.5 million.
• Multiple hedge funds adjusted their positions, with notable increases from institutions like Bank of Nova Scotia and OVERSEA CHINESE BANKING Corp Ltd, indicating growing institutional interest in MGM Resorts.
• MGM Resorts reported earnings of $0.79 per share, exceeding analyst estimates, while its board approved a share repurchase plan allowing up to $2 billion worth of shares to be bought back, suggesting confidence in the stock's value.

Factorial Partners LLC grew its position in shares of MGM Resorts International (NYSE:MGM - Free Report) by 521.1% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 118,000 shares of the company's stock after purchasing an additional 99,000 shares during the quarter. MGM Resorts International makes up about 2.2% of Factorial Partners LLC's holdings, making the stock its 20th largest position. Factorial Partners LLC's holdings in MGM Resorts International were worth $3,498,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in MGM. Invesco Ltd. grew its holdings in shares of MGM Resorts International by 22.5% during the fourth quarter. Invesco Ltd. now owns 5,785,343 shares of the company's stock worth $200,462,000 after buying an additional 1,063,707 shares during the last quarter. Marshall Wace LLP raised its holdings in MGM Resorts International by 50.9% in the 4th quarter. Marshall Wace LLP now owns 3,233,718 shares of the company's stock valued at $112,048,000 after acquiring an additional 1,090,533 shares during the last quarter. Southeastern Asset Management Inc. TN increased its holdings in shares of MGM Resorts International by 9.6% during the 4th quarter. Southeastern Asset Management Inc. TN now owns 2,409,147 shares of the company's stock worth $83,477,000 after buying an additional 211,245 shares during the last quarter. Northern Trust Corp boosted its position in MGM Resorts International by 15.1% during 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 during the period. Finally, Eminence Capital LP purchased a new stake in MGM Resorts International during the 4th quarter worth $72,408,000. Hedge funds and other institutional investors own 68.11% of the company's stock.

MGM Resorts International Stock Up 0.3%

MGM traded up $0.10 during trading on Wednesday, reaching $35.07. The company had a trading volume of 3,679,395 shares, compared to its average volume of 5,080,085. The business's fifty day moving average price is $35.34 and its 200 day moving average price is $33.44. The company has a debt-to-equity ratio of 1.67, a current ratio of 1.22 and a quick ratio of 1.18. The company has a market cap of $9.55 billion, a P/E ratio of 19.27, a PEG ratio of 1.65 and a beta of 1.81. MGM Resorts International has a 12 month low of $25.30 and a 12 month high of $42.53.

MGM Resorts International (NYSE:MGM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The company reported $0.79 EPS for the quarter, topping analysts' consensus estimates 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 business had revenue of $4.40 billion for the quarter, compared to analyst estimates of $4.28 billion. During the same quarter in the previous year, the firm posted $0.86 earnings per share. The firm's revenue for the quarter was up 1.8% on a year-over-year basis. Equities analysts anticipate that MGM Resorts International will post 2.21 EPS for the current year.

MGM Resorts International declared that its board has approved a stock buyback plan on Wednesday, April 30th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 22.4% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In other MGM Resorts International news, COO Corey Ian Sanders sold 40,000 shares of the company's stock in a transaction 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 transaction, the chief operating officer directly owned 281,530 shares in the company, valued at $9,693,077.90. The trade was a 12.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Daniel J. Taylor sold 5,261 shares of the company's stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $34.93, for a total transaction of $183,766.73. The disclosure for this sale can be found here. Over the last three months, insiders have sold 105,261 shares of company stock valued at $3,486,367. 3.06% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Citigroup raised shares of MGM Resorts International from a "hold" rating to a "strong-buy" rating and increased their price target for the stock from $55.00 to $57.00 in a research report on Wednesday, July 9th. JPMorgan Chase & Co. initiated coverage on shares of MGM Resorts International in a research note on Monday, June 23rd. They set a "neutral" rating and a $38.00 price objective on the stock. The Goldman Sachs Group began coverage on shares of MGM Resorts International in a report on Monday, July 7th. They set a "sell" rating and a $34.00 target price for the company. JMP Securities reissued a "market perform" rating on shares of MGM Resorts International in a research note on Thursday, June 26th. Finally, Morgan Stanley raised their price target on shares of MGM Resorts International from $38.00 to $41.00 and gave the company an "equal weight" rating in a report on Wednesday. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus 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.