Vanguard Group Inc. Sells 858,635 Shares of MGM Resorts International (NYSE:MGM)

Key Points

• Vanguard Group Inc. reduced its stake in MGM Resorts International by 3.3%, selling 858,635 shares to hold 25,214,892 shares, valued at approximately $747.37 million.
• MGM Resorts International's quarterly earnings surpassed analysts' expectations, reporting $0.79 earnings per share and $4.40 billion in revenue, an increase of 1.8% year-over-year.
• The company has initiated a $2 billion stock repurchase plan, indicating that its leadership believes the stock is undervalued.

Vanguard Group Inc. lessened its position in MGM Resorts International (NYSE:MGM - Free Report) by 3.3% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 25,214,892 shares of the company's stock after selling 858,635 shares during the period. Vanguard Group Inc. owned about 9.27% of MGM Resorts International worth $747,369,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently modified their holdings of MGM. Annis Gardner Whiting Capital Advisors LLC lifted its stake in MGM Resorts International by 17.2% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 32,262 shares of the company's stock valued at $956,000 after purchasing an additional 4,744 shares during the last quarter. American Assets Inc. bought a new stake in MGM Resorts International in the first quarter valued at approximately $534,000. Levin Capital Strategies L.P. lifted its position in shares of MGM Resorts International by 13.5% in the first quarter. Levin Capital Strategies L.P. now owns 92,553 shares of the company's stock valued at $2,743,000 after buying an additional 10,988 shares during the last quarter. Empower Advisory Group LLC boosted its stake in shares of MGM Resorts International by 13.1% during the 1st quarter. Empower Advisory Group LLC now owns 1,541,516 shares of the company's stock worth $45,691,000 after acquiring an additional 178,303 shares during the period. Finally, American Assets Investment Management LLC increased its holdings in shares of MGM Resorts International by 391.3% during the 1st quarter. American Assets Investment Management LLC now owns 155,067 shares of the company's stock worth $4,596,000 after acquiring an additional 123,502 shares during the last quarter. Institutional investors own 68.11% of the company's stock.

Insiders Place Their Bets

In other news, Director Keith A. Meister sold 60,000 shares of MGM Resorts International stock in a transaction 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 transaction, the director owned 5,627,478 shares in the company, valued at approximately $180,585,769.02. This trade represents a 1.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 3.06% of the stock is owned by insiders.

MGM Resorts International Trading Up 3.0%

Shares of MGM Resorts International stock opened at $35.40 on Wednesday. The company has a quick ratio of 1.18, a current ratio of 1.22 and a debt-to-equity ratio of 1.67. MGM Resorts International has a 12-month low of $25.30 and a 12-month high of $42.53. The company has a market capitalization of $9.63 billion, a price-to-earnings ratio of 19.45, a PEG ratio of 1.62 and a beta of 1.81. The firm's 50-day moving average price is $35.58 and its two-hundred day moving average price is $33.49.

MGM Resorts International (NYSE:MGM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.79 earnings per share for the quarter, topping analysts' consensus estimates of $0.58 by $0.21. The company 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 firm's quarterly revenue was up 1.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.86 EPS. On average, analysts forecast that MGM Resorts International will post 2.21 earnings per share for the current fiscal year.

MGM Resorts International announced that its board has authorized a stock repurchase plan on Wednesday, April 30th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows 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 leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Wall Street Zen raised MGM Resorts International from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. Stifel Nicolaus increased their price objective on shares of MGM Resorts International from $48.00 to $50.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. JPMorgan Chase & Co. initiated coverage on shares of MGM Resorts International in a report on Monday, June 23rd. They set a "neutral" rating and a $38.00 target price for the company. Seaport Res Ptn lowered shares of MGM Resorts International from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 21st. Finally, Susquehanna increased their price target on shares of MGM Resorts International from $50.00 to $60.00 and gave the company a "positive" rating in a report on Tuesday, July 29th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $48.72.

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.

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