MGM Resorts International $MGM Stock: Hosking Partners LLP Lowers Holdings

Key Points

• Hosking Partners LLP reduced its MGM Resorts position by 6.9% in the third quarter, selling 48,926 shares and retaining 662,020 shares valued at approximately $20.6 million. Institutional investors and hedge funds collectively own 68.11% of MGM.
• Analysts have broadly lowered their price targets, with the consensus rating at “Hold” and an average target of $46.71. Recent targets range from $29 to $55, reflecting more cautious expectations despite some Buy and Overweight ratings.
• MGM shares opened at $28.86, near their 52-week low of $27.93 and below both their 50-day and 200-day moving averages. The company’s latest quarterly results beat estimates, but expected annual EPS is $1.89 and upcoming earnings are projected to decline.

Hosking Partners LLP decreased its position in MGM Resorts International (NYSE:MGM - Free Report) by 6.9% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 662,020 shares of the company's stock after selling 48,926 shares during the quarter. Hosking Partners LLP owned approximately 0.26% of MGM Resorts International worth $20,556,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of MGM. Whittier Trust Co. boosted its holdings in shares of MGM Resorts International by 2.5% during the 1st quarter. Whittier Trust Co. now owns 10,778 shares of the company's stock worth $405,000 after buying an additional 262 shares during the period. Tema ETFs LLC raised its holdings in MGM Resorts International by 10.6% in the 2nd quarter. Tema ETFs LLC now owns 3,016 shares of the company's stock worth $144,000 after acquiring an additional 290 shares during the period. New Mexico Educational Retirement Board raised its holdings in MGM Resorts International by 4.4% in the 2nd quarter. New Mexico Educational Retirement Board now owns 9,550 shares of the company's stock worth $457,000 after acquiring an additional 400 shares during the period. Versant Capital Management Inc raised its holdings in MGM Resorts International by 41.3% in the 3rd quarter. Versant Capital Management Inc now owns 1,437 shares of the company's stock worth $45,000 after acquiring an additional 420 shares during the period. Finally, HB Wealth Management LLC raised its holdings in MGM Resorts International by 2.9% in the 1st quarter. HB Wealth Management LLC now owns 16,440 shares of the company's stock worth $608,000 after acquiring an additional 458 shares during the period. 68.11% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Mizuho decreased their price target on shares of MGM Resorts International from $60.00 to $55.00 and set an "outperform" rating for the company in a report on Thursday, September 24th. Barclays cut their price objective on MGM Resorts International from $48.00 to $37.00 and set an "equal weight" rating for the company in a research report on Friday, October 9th. Weiss Ratings upgraded MGM Resorts International from a "sell (d+)" rating to a "hold (c)" rating in a research note on Thursday, July 30th. Wells Fargo & Company lowered their target price on MGM Resorts International from $48.30 to $29.00 and set an "equal weight" rating on the stock in a report on Monday. Finally, Citigroup lowered their target price on MGM Resorts International from $48.00 to $32.00 and set a "neutral" rating on the stock in a report on Monday, October 12th. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $46.71.

More MGM Resorts International News

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

• Positive Sentiment: A securities law firm said it is investigating Barry Diller’s reported $48.30-per-share bid for MGM and encouraged shareholders to contact the firm. A credible takeover offer at a substantial premium could support the stock, although the investigation adds uncertainty. MGM Deal Notice article
• Positive Sentiment: MGM is promoting expanded fan, culinary, fashion and art experiences at Bellagio, ARIA, The Cosmopolitan and Park MGM during the November 19–21 Formula 1 Las Vegas Grand Prix. The event could help drive visitation, resort spending and brand exposure. MGM Formula 1 experiences article
• Positive Sentiment: Despite recent target reductions, JPMorgan maintained an Overweight rating at $42, while Truist maintained a Buy rating at $45. Both targets imply meaningful potential upside based on the provided reference price.
• Neutral Sentiment: The analyst target cuts may reflect more cautious assumptions rather than a uniformly bearish outlook: JPMorgan reduced its target from $53 to $42, Truist from $55 to $45, and Stifel from $49 to $40. Stifel also downgraded its stance to Hold. Stifel MGM price target article
• Negative Sentiment: Zacks expects MGM’s third-quarter earnings to decline and says the company lacks the conditions typically associated with a likely earnings beat. That raises near-term risk ahead of the upcoming results. MGM Q3 earnings preview

MGM Resorts International Price Performance

Shares of MGM Resorts International stock opened at $28.86 on Thursday. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.34 and a quick ratio of 1.30. The company has a market cap of $7.26 billion, a PE ratio of 17.49, a price-to-earnings-growth ratio of 1.53 and a beta of 1.35. The firm has a fifty day moving average price of $36.85 and a two-hundred day moving average price of $40.93. MGM Resorts International has a fifty-two week low of $27.93 and a fifty-two week high of $51.59.

MGM Resorts International (NYSE:MGM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.56 by $0.03. The firm had revenue of $4.45 billion during the quarter, compared to analysts' expectations of $4.42 billion. MGM Resorts International had a return on equity of 23.30% and a net margin of 2.40%. The company's revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.79 EPS. Analysts expect that MGM Resorts International will post 1.89 EPS for the current year.

MGM Resorts International Company Profile

MGM Resorts International is a global hospitality and entertainment company that develops, owns, and operates destination resorts featuring casinos, hotels, restaurants, entertainment venues, convention facilities, retail spaces, and nightlife offerings. Its portfolio includes well-known properties such as MGM Grand, Bellagio, ARIA, Mandalay Bay, and The Cosmopolitan of Las Vegas.

The company serves customers through properties in Las Vegas and other U.S. markets, including regional destinations in Michigan, Maryland, Massachusetts, Mississippi, New Jersey, New York, and Ohio.

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