Russell Investments Group Ltd. Decreases Stock Position in MGM Resorts International $MGM

Key Points

• Russell Investments Group Ltd. has reduced its holdings in MGM Resorts International by 52.7%, selling 214,062 shares and now owning 192,272 shares valued at approximately $5.7 million.
• MGM Resorts reported a quarterly EPS of $0.79, exceeding expectations, and revenue of $4.4 billion, indicating a 1.8% year-over-year increase.
• The company's Board of Directors has approved a stock buyback program allowing the repurchase of up to $2 billion of its shares, which typically signifies confidence in the stock's undervaluation.

Russell Investments Group Ltd. reduced its holdings in shares of MGM Resorts International (NYSE:MGM - Free Report) by 52.7% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 192,272 shares of the company's stock after selling 214,062 shares during the period. Russell Investments Group Ltd. owned about 0.07% of MGM Resorts International worth $5,701,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the stock. HighTower Advisors LLC boosted its stake in shares of MGM Resorts International by 5.3% during the first quarter. HighTower Advisors LLC now owns 119,866 shares of the company's stock valued at $3,553,000 after purchasing an additional 6,027 shares during the period. Public Sector Pension Investment Board raised its holdings in MGM Resorts International by 10.7% in the first quarter. Public Sector Pension Investment Board now owns 31,108 shares of the company's stock worth $922,000 after purchasing an additional 3,017 shares in the last quarter. Nuveen LLC bought a new position in MGM Resorts International in the first quarter worth $13,618,000. Invesco Ltd. raised its holdings in MGM Resorts International by 7.7% in the first quarter. Invesco Ltd. now owns 6,233,213 shares of the company's stock worth $184,752,000 after purchasing an additional 447,870 shares in the last quarter. Finally, Helikon Investments Ltd bought a new position in shares of MGM Resorts International during the first quarter valued at $54,418,000. Hedge funds and other institutional investors own 68.11% of the company's stock.

MGM Resorts International Stock Up 1.0%

Shares of MGM traded up $0.37 during midday trading on Tuesday, reaching $38.49. 4,598,075 shares of the stock were exchanged, compared to its average volume of 4,842,062. MGM Resorts International has a 52 week low of $25.30 and a 52 week high of $42.53. The company has a current ratio of 1.22, a quick ratio of 1.18 and a debt-to-equity ratio of 1.67. The company's 50 day moving average is $36.42 and its two-hundred day moving average is $33.67. The company has a market capitalization of $10.48 billion, a P/E ratio of 21.15, a PEG ratio of 1.80 and a beta of 1.81.

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

MGM Resorts International announced that its Board of Directors has authorized a share repurchase program on Wednesday, April 30th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to repurchase up to 22.4% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Macquarie reduced their price target on MGM Resorts International from $50.00 to $48.00 and set an "outperform" rating for the company in a report on Friday, May 2nd. Citizens Jmp downgraded MGM Resorts International from an "outperform" rating to a "market perform" rating in a research note on Thursday, June 26th. Morgan Stanley boosted their price target on MGM Resorts International from $38.00 to $41.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 6th. The Goldman Sachs Group initiated coverage on MGM Resorts International in a research note on Monday, July 7th. They set a "sell" rating and a $34.00 price objective for the company. Finally, Wall Street Zen upgraded MGM Resorts International from a "sell" rating to a "hold" rating in a research note on Thursday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $48.72.

Insider Buying and Selling at MGM Resorts International

In related news, Director Keith A. Meister sold 60,000 shares of the company's stock in a transaction on Friday, June 13th. The stock was 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 in the company, valued at $180,585,769.02. This represents a 1.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. 3.06% of the stock is owned by company insiders.

MGM Resorts International 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.