Invesco Ltd. Increases Stock Holdings in MGM Resorts International (NYSE:MGM)

Key Points

• Invesco Ltd. increased its stake in MGM Resorts International by 7.7%, owning approximately 6.23 million shares valued at $184.75 million at the end of the first quarter.
• Several institutional investors also adjusted their holdings, with National Bank of Canada FI increasing its stake by 59.1% during the same period.
• MGM Resorts International announced a stock buyback plan allowing the company to repurchase $2 billion in shares, signaling management's belief that the stock may be undervalued.

Invesco Ltd. boosted its stake in MGM Resorts International (NYSE:MGM - Free Report) by 7.7% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 6,233,213 shares of the company's stock after buying an additional 447,870 shares during the period. Invesco Ltd. owned approximately 2.29% of MGM Resorts International worth $184,752,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Helikon Investments Ltd purchased a new stake in MGM Resorts International in the 1st quarter valued at about $54,418,000. Davis Selected Advisers raised its holdings in MGM Resorts International by 4.5% in the 1st quarter. Davis Selected Advisers now owns 20,815,057 shares of the company's stock valued at $616,958,000 after buying an additional 894,344 shares during the period. National Bank of Canada FI raised its holdings in MGM Resorts International by 59.1% in the 1st quarter. National Bank of Canada FI now owns 170,271 shares of the company's stock valued at $5,047,000 after buying an additional 63,235 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in MGM Resorts International by 18.0% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 408,812 shares of the company's stock valued at $12,117,000 after buying an additional 62,343 shares during the period. Finally, Headlands Technologies LLC raised its holdings in MGM Resorts International by 1,395.4% in the 1st quarter. Headlands Technologies LLC now owns 5,548 shares of the company's stock valued at $164,000 after buying an additional 5,177 shares during the period. 68.11% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages recently issued reports on MGM. Citizens Jmp lowered shares of MGM Resorts International from an "outperform" rating to a "market perform" rating in a report on Thursday, June 26th. 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. JMP Securities reiterated a "market perform" rating on shares of MGM Resorts International in a research note on Thursday, June 26th. Macquarie cut 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. Finally, Morgan Stanley boosted their price target on shares of MGM Resorts International from $38.00 to $41.00 and gave the stock an "equal weight" rating in a research note on Wednesday, August 6th. One 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 company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $48.72.

Insider Buying and Selling at MGM Resorts International

In other news, Director Keith A. Meister sold 60,000 shares of the 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 directly owned 5,627,478 shares of the company's stock, valued at approximately $180,585,769.02. This represents a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 3.06% of the company's stock.

MGM Resorts International Stock Performance

Shares of MGM opened at $36.45 on Thursday. The stock has a 50 day moving average price of $35.67 and a 200 day moving average price of $33.51. The company has a quick ratio of 1.18, a current ratio of 1.22 and a debt-to-equity ratio of 1.67. The company has a market capitalization of $9.92 billion, a price-to-earnings ratio of 20.03, a price-to-earnings-growth ratio of 1.67 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.

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 analysts' consensus estimates of $0.58 by $0.21. The firm had revenue of $4.40 billion during the quarter, compared to the consensus estimate of $4.28 billion. MGM Resorts International had a return on equity of 19.39% and a net margin of 3.13%. The firm's quarterly revenue was up 1.8% compared to the same quarter last year. During the same period in the prior year, the company posted $0.86 earnings per share. Research analysts predict that MGM Resorts International will post 2.21 EPS for the current fiscal year.

MGM Resorts International announced that its board has authorized a stock buyback plan on Wednesday, April 30th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to purchase up to 22.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's management believes its shares are undervalued.

About MGM Resorts International

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.

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