Helikon Investments Ltd Buys Shares of 1,835,975 MGM Resorts International (NYSE:MGM)

Key Points

• Helikon Investments Ltd has acquired a significant stake in MGM Resorts International, purchasing 1,835,975 shares valued at approximately $54.4 million, making it the firm's 8th largest holding.
• Insider trading activity included Director Daniel J. Taylor selling 5,261 shares for about $183,767 and Director Keith A. Meister selling 60,000 shares for approximately $1.93 million.
• MGM Resorts International has announced a $2 billion stock buyback program, reflecting management's belief that the stock is undervalued.

Helikon Investments Ltd purchased a new stake in shares of MGM Resorts International (NYSE:MGM - Free Report) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 1,835,975 shares of the company's stock, valued at approximately $54,418,000. MGM Resorts International accounts for approximately 4.2% of Helikon Investments Ltd's investment portfolio, making the stock its 8th biggest holding. Helikon Investments Ltd owned 0.67% of MGM Resorts International as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the company. TD Waterhouse Canada Inc. lifted its holdings in MGM Resorts International by 8.9% in the 4th quarter. TD Waterhouse Canada Inc. now owns 3,190 shares of the company's stock worth $111,000 after purchasing an additional 261 shares in the last quarter. Amalgamated Bank raised its holdings in shares of MGM Resorts International by 0.8% during the 1st quarter. Amalgamated Bank now owns 43,933 shares of the company's stock worth $1,302,000 after acquiring an additional 329 shares in the last quarter. State of Alaska Department of Revenue raised its holdings in MGM Resorts International by 1.6% during the 1st quarter. State of Alaska Department of Revenue now owns 26,210 shares of the company's stock valued at $776,000 after buying an additional 410 shares during the period. Golden State Wealth Management LLC raised its holdings in MGM Resorts International by 83.5% during the 1st quarter. Golden State Wealth Management LLC now owns 1,000 shares of the company's stock valued at $30,000 after buying an additional 455 shares during the period. Finally, Northeast Financial Consultants Inc raised its holdings in MGM Resorts International by 4.7% during the 4th quarter. Northeast Financial Consultants Inc now owns 11,250 shares of the company's stock valued at $390,000 after buying an additional 500 shares during the period. 68.11% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other MGM Resorts International news, Director Daniel J. Taylor sold 5,261 shares of the company's stock in a transaction that occurred on Tuesday, May 13th. The stock was sold at an average price of $34.93, for a total value of $183,766.73. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Keith A. Meister sold 60,000 shares of the company's stock in a transaction that occurred on 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 completion of the sale, the director 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 disclosure for this sale can be found here. Corporate insiders own 3.06% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on MGM shares. Morgan Stanley increased their price target on MGM Resorts International from $38.00 to $41.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 6th. Susquehanna increased their price target on MGM Resorts International from $50.00 to $60.00 and gave the company a "positive" rating in a research note on Tuesday, July 29th. The Goldman Sachs Group started coverage on MGM Resorts International in a research note on Monday, July 7th. They issued a "sell" rating and a $34.00 price objective for the company. Macquarie reduced their price objective on MGM Resorts International from $50.00 to $48.00 and set an "outperform" rating for the company in a research note on Friday, May 2nd. Finally, Citizens Jmp cut MGM Resorts International from an "outperform" rating to a "market perform" rating in a research report on Thursday, June 26th. One analyst has rated the stock with a sell rating, nine have issued a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $48.72.

MGM Resorts International Stock Up 0.6%

Shares of NYSE MGM traded up $0.19 during midday trading on Monday, reaching $34.37. 3,792,582 shares of the company's stock were exchanged, compared to its average volume of 5,075,862. The company has a debt-to-equity ratio of 1.67, a quick ratio of 1.18 and a current ratio of 1.22. The stock has a market capitalization of $9.36 billion, a PE ratio of 18.89, a price-to-earnings-growth ratio of 1.61 and a beta of 1.81. MGM Resorts International has a 52-week low of $25.30 and a 52-week high of $42.53. The business's fifty day moving average price is $35.51 and its two-hundred day moving average price is $33.48.

MGM Resorts International (NYSE:MGM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The company reported $0.79 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.21. The firm had revenue of $4.40 billion during the quarter, compared to analyst estimates of $4.28 billion. MGM Resorts International had a return on equity of 19.39% and a net margin of 3.13%. MGM Resorts International's quarterly revenue was up 1.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.86 earnings per share. Analysts forecast 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 share repurchase plan on Wednesday, April 30th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to reacquire up to 22.4% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board believes its shares are undervalued.

MGM Resorts International Company 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.