Investors Purchase Large Volume of MGM Resorts International Call Options (NYSE:MGM)

MGM Resorts International (NYSE:MGM - Get Free Report) was the target of some unusual options trading on Thursday. Stock investors purchased 21,517 call options on the stock. This is an increase of approximately 69% compared to the average daily volume of 12,738 call options.

Insider Activity

In other MGM Resorts International news, COO Corey Ian Sanders sold 40,000 shares of the business's stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $34.43, for a total value of $1,377,200.00. Following the completion of the transaction, the chief operating officer now directly owns 281,530 shares of the company's stock, valued at approximately $9,693,077.90. The trade was a 12.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Daniel J. Taylor sold 5,261 shares of the firm's stock in a transaction that occurred on Tuesday, May 13th. The stock was sold at an average price of $34.93, for a total transaction of $183,766.73. The disclosure for this sale can be found here. Insiders sold a total of 105,261 shares of company stock valued at $3,486,367 in the last quarter. 3.06% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Assetmark Inc. raised its stake in shares of MGM Resorts International by 104.1% during the 4th quarter. Assetmark Inc. now owns 806 shares of the company's stock worth $28,000 after buying an additional 411 shares during the last quarter. Mascagni Wealth Management Inc. purchased a new position in MGM Resorts International in the 4th quarter valued at about $28,000. Golden State Wealth Management LLC lifted its stake in shares of MGM Resorts International by 83.5% during the first quarter. Golden State Wealth Management LLC now owns 1,000 shares of the company's stock valued at $30,000 after buying an additional 455 shares during the period. True Wealth Design LLC purchased a new position in shares of MGM Resorts International during the fourth quarter valued at approximately $33,000. Finally, CX Institutional acquired a new stake in MGM Resorts International during the first quarter worth approximately $36,000. 68.11% of the stock is owned by hedge funds and other institutional investors.

MGM Resorts International Stock Down 0.7%

Shares of MGM traded down $0.22 during mid-day trading on Thursday, reaching $33.66. The company's stock had a trading volume of 1,189,425 shares, compared to its average volume of 4,894,092. The company has a debt-to-equity ratio of 1.79, a current ratio of 1.31 and a quick ratio of 1.26. MGM Resorts International has a 12-month low of $25.30 and a 12-month high of $47.26. The company's 50 day moving average is $32.29 and its 200 day moving average is $32.88. The stock has a market cap of $9.16 billion, a PE ratio of 15.04, a price-to-earnings-growth ratio of 2.36 and a beta of 1.76.

MGM Resorts International (NYSE:MGM - Get Free Report) last released its earnings results on Wednesday, April 30th. The company reported $0.69 EPS for the quarter, beating analysts' consensus estimates of $0.50 by $0.19. MGM Resorts International had a return on equity of 20.64% and a net margin of 3.95%. The company had revenue of $4.28 billion during the quarter, compared to the consensus estimate of $4.29 billion. During the same quarter last year, the company earned $0.74 earnings per share. MGM Resorts International's quarterly revenue was down 2.4% compared to the same quarter last year. Equities analysts anticipate that MGM Resorts International will post 2.21 EPS for the current fiscal year.

MGM Resorts International declared that its Board of Directors has initiated a share buyback plan on Wednesday, April 30th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 22.4% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms recently weighed in on MGM. Susquehanna upped their price target on MGM Resorts International from $45.00 to $50.00 and gave the stock a "positive" rating in a report on Thursday, May 1st. Truist Financial lowered their target price on MGM Resorts International from $50.00 to $45.00 and set a "buy" rating on the stock in a report on Wednesday, April 23rd. Barclays raised their price objective on shares of MGM Resorts International from $41.00 to $43.00 and gave the stock an "overweight" rating in a research report on Thursday, May 1st. Macquarie reduced their target price on MGM Resorts International from $50.00 to $48.00 and set an "outperform" rating on the stock in a research report on Friday, May 2nd. Finally, JPMorgan Chase & Co. assumed coverage on shares of MGM Resorts International in a report on Monday. They issued a "neutral" rating and a $38.00 price objective on the stock. Nine investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $48.29.

About MGM Resorts International

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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