Korea Investment CORP Trims Stock Position in MGM Resorts International $MGM

Key Points

• Korea Investment CORP has reduced its stake in MGM Resorts International by 61.5%, now holding shares worth approximately $1.66 million after selling 89,300 shares in the first quarter.
• MGM Resorts has recently seen increased interest from institutional investors, with several funds significantly boosting their stakes, while insiders own 3.06% of the company.
• Analysts have raised price targets for MGM Resorts International, with Citigroup upgrading the stock to a "strong-buy" rating and raising the price target from $55 to $57.

Korea Investment CORP trimmed its holdings in MGM Resorts International (NYSE:MGM - Free Report) by 61.5% in the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 55,987 shares of the company's stock after selling 89,300 shares during the period. Korea Investment CORP's holdings in MGM Resorts International were worth $1,659,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in MGM. Eminence Capital LP purchased a new position in MGM Resorts International in the fourth quarter worth approximately $72,408,000. Helikon Investments Ltd purchased a new position in MGM Resorts International in the first quarter worth approximately $54,418,000. AQR Capital Management LLC grew its position in MGM Resorts International by 12,726.8% in the fourth quarter. AQR Capital Management LLC now owns 1,278,965 shares of the company's stock worth $44,316,000 after acquiring an additional 1,268,994 shares during the period. Davis Selected Advisers grew its position in MGM Resorts International by 4.5% in the first quarter. Davis Selected Advisers now owns 20,815,057 shares of the company's stock worth $616,958,000 after acquiring an additional 894,344 shares during the period. Finally, Nuveen LLC purchased a new position in MGM Resorts International in the first quarter worth approximately $13,618,000. 68.11% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Mizuho cut their target price on MGM Resorts International from $59.00 to $58.00 and set an "outperform" rating on the stock in a research report on Thursday, July 31st. The Goldman Sachs Group assumed coverage on MGM Resorts International in a research report on Monday, July 7th. They issued a "sell" rating and a $34.00 target price on the stock. Seaport Res Ptn lowered MGM Resorts International from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 21st. JPMorgan Chase & Co. assumed coverage on MGM Resorts International in a research report on Monday, June 23rd. They issued a "neutral" rating and a $38.00 target price on the stock. Finally, Morgan Stanley boosted their target price on MGM Resorts International from $38.00 to $41.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, MGM Resorts International presently has an average rating of "Moderate Buy" and a consensus target price of $48.83.

Insider Activity

In other news, Director Keith A. Meister sold 60,000 shares of MGM Resorts International stock in a transaction on Friday, June 13th. The shares were sold at an average price of $32.09, for a total transaction 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. The trade was a 1.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 3.06% of the company's stock.

MGM Resorts International Stock Down 0.8%

Shares of NYSE:MGM traded down $0.31 during trading on Thursday, hitting $39.47. The company's stock had a trading volume of 1,951,554 shares, compared to its average volume of 5,287,287. The business has a 50 day moving average price of $36.53 and a two-hundred day moving average price of $33.72. The company has a market capitalization of $10.74 billion, a PE ratio of 21.69, a P/E/G ratio of 1.82 and a beta of 1.81. The company has a debt-to-equity ratio of 1.67, a quick ratio of 1.18 and a current ratio of 1.22. MGM Resorts International has a fifty-two week low of $25.30 and a fifty-two week high of $42.53.

MGM Resorts International (NYSE:MGM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.79 EPS for the quarter, topping the consensus estimate of $0.58 by $0.21. The business had revenue of $4.40 billion during the quarter, compared to the consensus estimate of $4.28 billion. MGM Resorts International had a net margin of 3.13% and a return on equity of 19.39%. The company's quarterly revenue was up 1.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.86 earnings per share. As a group, research analysts expect that MGM Resorts International will post 2.21 EPS for the current fiscal year.

MGM Resorts International announced that its board has initiated a stock buyback program on Wednesday, April 30th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the company to repurchase up to 22.4% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's management 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.