Redwood Investment Management LLC Takes Position in MGM Resorts International $MGM

Key Points

• Redwood Investment Management acquired a new 28,459-share stake in MGM Resorts International worth approximately $1.05 million. Institutional investors collectively own 68.11% of the company, with several major funds also increasing their positions.
• MGM reported quarterly revenue of $4.45 billion, up 2.2% year over year, and earnings per share of $0.59, narrowly exceeding the stated analyst consensus of $0.56. However, EPS declined from $0.79 a year earlier, reflecting pressure in some markets despite growth in Las Vegas and digital operations.
• Analyst sentiment remains favorable, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $52.49; recent upgrades included Truist’s move to “buy” and HSBC’s “strong buy” rating.

Redwood Investment Management LLC bought a new position in MGM Resorts International (NYSE:MGM - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 28,459 shares of the company's stock, valued at approximately $1,053,000.

Several other hedge funds and other institutional investors have also modified their holdings of the stock. AQR Capital Management LLC grew its position in MGM Resorts International by 202.5% in the third quarter. AQR Capital Management LLC now owns 8,446,982 shares of the company's stock valued at $292,772,000 after acquiring an additional 5,654,757 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in MGM Resorts International by 81.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 7,642,060 shares of the company's stock worth $264,874,000 after acquiring an additional 3,429,946 shares in the last quarter. Davis Selected Advisers raised its stake in MGM Resorts International by 12.0% during the fourth quarter. Davis Selected Advisers now owns 26,820,202 shares of the company's stock worth $978,669,000 after acquiring an additional 2,866,750 shares in the last quarter. Norges Bank bought a new position in shares of MGM Resorts International during the fourth quarter valued at $82,348,000. Finally, Samlyn Capital LLC bought a new position in shares of MGM Resorts International during the third quarter valued at $62,787,000. Institutional investors own 68.11% of the company's stock.

Insider Buying and Selling

In other MGM Resorts International news, Director Daniel J. Taylor sold 6,675 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $38.44, for a total transaction of $256,587.00. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 3.38% of the stock is currently owned by corporate insiders.

MGM Resorts International Price Performance

MGM Resorts International stock opened at $44.58 on Monday. The business's fifty day moving average is $46.47 and its two-hundred day moving average is $40.02. The company has a debt-to-equity ratio of 1.80, a quick ratio of 1.30 and a current ratio of 1.34. The firm has a market cap of $11.22 billion, a P/E ratio of 27.02 and a beta of 1.29. MGM Resorts International has a 52 week low of $29.18 and a 52 week high of $51.59.

MGM Resorts International (NYSE:MGM - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $0.59 earnings per share for the quarter, beating analysts' consensus estimates of $0.56 by $0.03. MGM Resorts International had a return on equity of 23.30% and a net margin of 2.40%.The company had revenue of $4.45 billion during the quarter, compared to analyst estimates of $4.42 billion. During the same period last year, the company posted $0.79 earnings per share. The firm's quarterly revenue was up 2.2% compared to the same quarter last year. Equities research analysts forecast that MGM Resorts International will post 1.97 earnings per share for the current fiscal year.

MGM Resorts International News Roundup

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

• Positive Sentiment: HSBC upgraded MGM Resorts International to “strong buy,” providing a fresh bullish signal for the casino operator. Zacks.com
• Positive Sentiment: MGM reported record second-quarter consolidated revenue of approximately $4.45 billion, with Las Vegas Strip revenue rising 3% to $2.2 billion. Regional operations posted record same-store quarterly revenue, while MGM Digital revenue increased 20% year over year. MGM Resorts second-quarter results
• Positive Sentiment: Management described continued growth momentum, supported by Las Vegas demand, iGaming strength and potential value from MGM’s digital business, share repurchases and scarce casino assets. MGM Resorts earnings call highlights
• Neutral Sentiment: Susquehanna raised its price target to $53 from $52 while maintaining a positive rating, suggesting additional upside but not a major change in its investment view. Susquehanna price target update
• Negative Sentiment: Adjusted quarterly earnings of $0.59 per share were below at least one consensus estimate of $0.63 and declined from $0.79 a year earlier. Analysts cited China-related weakness and regional margin pressure as offsets to Las Vegas and digital growth. MGM Resorts second-quarter earnings analysis

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Jefferies Financial Group reaffirmed a "hold" rating on shares of MGM Resorts International in a report on Thursday, July 2nd. KeyCorp raised shares of MGM Resorts International from a "sector weight" rating to an "overweight" rating and set a $117.00 price target for the company in a report on Monday, April 27th. Weiss Ratings upgraded shares of MGM Resorts International from a "sell (d+)" rating to a "hold (c)" rating in a research report on Thursday. Stifel Nicolaus restated a "hold" rating and issued a $49.00 price target (up from $48.00) on shares of MGM Resorts International in a research report on Monday, June 15th. Finally, Truist Financial raised shares of MGM Resorts International from a "hold" rating to a "buy" rating and upped their price objective for the stock from $42.00 to $55.00 in a research note on Wednesday, May 27th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $52.49.

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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