Geode Capital Management LLC Raises Holdings in MGM Resorts International $MGM

Key Points

• Geode Capital Management increased its MGM Resorts position by 1.0% in the fourth quarter, bringing its stake to 5.22 million shares worth about $190.3 million.
• MGM reported mixed quarterly results, with earnings of $0.49 per share missing estimates while revenue of $4.45 billion came in above expectations and rose 4.2% year over year.
• Wall Street sentiment is mixed but increasingly constructive, as some analysts raised targets and ratings amid takeover speculation and renewed interest in MGM’s digital growth and assets.

Geode Capital Management LLC grew its position in shares of MGM Resorts International (NYSE:MGM - Free Report) by 1.0% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund owned 5,224,452 shares of the company's stock after purchasing an additional 49,613 shares during the quarter. Geode Capital Management LLC owned approximately 1.91% of MGM Resorts International worth $190,295,000 as of its most recent filing with the SEC.

Other hedge funds also recently made changes to their positions in the company. CYBER HORNET ETFs LLC purchased a new position in shares of MGM Resorts International during the second quarter worth about $25,000. Global Retirement Partners LLC grew its holdings in shares of MGM Resorts International by 55.9% during the fourth quarter. Global Retirement Partners LLC now owns 784 shares of the company's stock worth $29,000 after purchasing an additional 281 shares during the last quarter. Elyxium Wealth LLC purchased a new position in shares of MGM Resorts International during the fourth quarter worth about $42,000. City Holding Co. purchased a new position in shares of MGM Resorts International during the fourth quarter worth about $44,000. Finally, Stance Capital LLC purchased a new position in shares of MGM Resorts International during the third quarter worth about $46,000. Hedge funds and other institutional investors own 68.11% of the company's stock.

MGM Resorts International Price Performance

Shares of MGM opened at $48.35 on Thursday. MGM Resorts International has a fifty-two week low of $29.18 and a fifty-two week high of $51.59. The company has a market capitalization of $12.37 billion, a price-to-earnings ratio of 67.15 and a beta of 1.31. The firm has a 50-day simple moving average of $38.77 and a 200-day simple moving average of $36.61. The company has a debt-to-equity ratio of 1.93, a quick ratio of 1.30 and a current ratio of 1.33.

MGM Resorts International (NYSE:MGM - Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $0.49 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.07). The business had revenue of $4.45 billion for the quarter, compared to analyst estimates of $4.37 billion. MGM Resorts International had a return on equity of 24.43% and a net margin of 1.03%.MGM Resorts International's quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter last year, the company posted $0.69 EPS. On average, equities research analysts anticipate that MGM Resorts International will post 2 earnings per share for the current year.

Wall Street Analyst Weigh In

MGM has been the topic of several research reports. Jefferies Financial Group lowered MGM Resorts International from a "buy" rating to a "hold" rating and dropped their price objective for the stock from $50.00 to $44.00 in a report on Friday, May 1st. UBS Group decreased their target price on shares of MGM Resorts International from $40.00 to $39.00 and set a "neutral" rating for the company in a research note on Friday, April 10th. Barclays increased their target price on shares of MGM Resorts International from $37.00 to $39.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 30th. KeyCorp upgraded shares of MGM Resorts International from a "sector weight" rating to an "overweight" rating and set a $117.00 target price for the company in a research note on Monday, April 27th. Finally, Truist Financial upgraded shares of MGM Resorts International from a "hold" rating to a "buy" rating and increased their target price for the stock from $42.00 to $55.00 in a research note on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, six have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, MGM Resorts International has an average rating of "Hold" and a consensus target price of $49.12.

Insider Activity at MGM Resorts International

In related news, Director Daniel J. Taylor sold 6,675 shares of the firm's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $38.44, for a total value of $256,587.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Iac Inc. acquired 450,000 shares of MGM Resorts International stock in a transaction that occurred on Tuesday, March 24th. The stock was purchased at an average price of $37.13 per share, with a total value of $16,708,500.00. Following the transaction, the insider owned 66,822,350 shares of the company's stock, valued at $2,481,113,855.50. This trade represents a 0.68% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 3.38% of the stock is owned by insiders.

Key Headlines Impacting MGM Resorts International

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

• Positive Sentiment: Barry Diller’s offer to take MGM private has created a potential acquisition premium and renewed M&A interest in the stock.
• Positive Sentiment: Deutsche Bank raised its price target on MGM to $55 and reiterated a buy rating, signaling upside versus the current trading range.
• Positive Sentiment: Analysts and industry coverage continue to highlight MGM’s digital growth, real estate assets, and improving gaming demand as reasons the company may be worth more than the current bid.
• Neutral Sentiment: Trading activity in MGM call options spiked, suggesting traders are positioning for continued volatility around the takeover story.
• Neutral Sentiment: Recent industry outlook pieces noted stronger Macau gaming and online betting trends, which are supportive for MGM’s broader gaming business.

MGM Resorts International 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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