Melco Resorts & Entertainment Limited (NASDAQ:MLCO) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts give Melco Resorts a “Moderate Buy” consensus: five rate it a buy, one a strong buy, two hold, and two sell. The average 12-month price target is $7.27, above the stock’s opening price of $5.47.
• Melco reported quarterly EPS of $0.06, in line with estimates, while revenue of $1.25 billion fell short of forecasts and declined 5.7% year over year. The company posted a 4.5% net margin and negative 26.45% return on equity.
• Institutional investors own 39.62% of the company, with major funds including Coronation Fund Managers, Arrowstreet Capital, and Goldman Sachs increasing their positions.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report) has been assigned an average rating of "Moderate Buy" from the ten analysts that are presently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, two have assigned a hold recommendation, five have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among brokerages that have covered the stock in the last year is $7.2667.

A number of brokerages have issued reports on MLCO. JPMorgan Chase & Co. reduced their price objective on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a "neutral" rating on the stock in a research note on Thursday, July 16th. Morgan Stanley cut Melco Resorts & Entertainment from an "overweight" rating to a "negative" rating in a report on Monday, June 22nd. Wall Street Zen downgraded shares of Melco Resorts & Entertainment from a "buy" rating to a "hold" rating in a research note on Sunday, June 28th. Citigroup cut their price objective on Melco Resorts & Entertainment from $10.50 to $9.40 and set a "buy" rating on the stock in a research note on Friday, July 10th. Finally, Susquehanna set a $7.00 price target on shares of Melco Resorts & Entertainment in a research report on Friday.

Melco Resorts & Entertainment Stock Performance

Shares of Melco Resorts & Entertainment stock opened at $5.47 on Tuesday. The stock has a market cap of $2.12 billion, a PE ratio of 9.12, a PEG ratio of 3.54 and a beta of 0.59. Melco Resorts & Entertainment has a 52-week low of $5.07 and a 52-week high of $10.15. The firm has a 50-day moving average of $5.46 and a 200-day moving average of $5.63.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) last announced its earnings results on Thursday, August 13th. The company reported $0.06 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.06. Melco Resorts & Entertainment had a net margin of 4.50% and a negative return on equity of 26.45%. The firm had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same quarter in the prior year, the business posted $0.04 EPS. The business's revenue was down 5.7% compared to the same quarter last year. Equities research analysts predict that Melco Resorts & Entertainment will post 0.5 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in MLCO. Coronation Fund Managers Ltd. increased its holdings in shares of Melco Resorts & Entertainment by 35.2% during the first quarter. Coronation Fund Managers Ltd. now owns 11,269,346 shares of the company's stock valued at $64,010,000 after acquiring an additional 2,934,127 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Melco Resorts & Entertainment by 67.3% during the third quarter. Arrowstreet Capital Limited Partnership now owns 9,198,664 shares of the company's stock worth $84,352,000 after purchasing an additional 3,700,980 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Melco Resorts & Entertainment by 16.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 6,015,200 shares of the company's stock worth $31,700,000 after purchasing an additional 846,504 shares in the last quarter. FIL Ltd bought a new position in shares of Melco Resorts & Entertainment in the 4th quarter worth $35,198,000. Finally, Renaissance Technologies LLC grew its position in Melco Resorts & Entertainment by 7.9% in the 1st quarter. Renaissance Technologies LLC now owns 4,461,600 shares of the company's stock valued at $25,342,000 after purchasing an additional 325,900 shares during the period. Institutional investors own 39.62% of the company's stock.

Melco Resorts & Entertainment Company Profile

Melco Resorts & Entertainment Limited NASDAQ: MLCO is a developer, owner and operator of integrated resort destinations in Asia and Europe. The company's portfolio spans casino gaming, hotel accommodations, retail, dining and entertainment facilities. Melco's properties feature a mix of luxury hotels, award-winning restaurants, high-limit gaming salons and entertainment venues, catering to a broad range of leisure and business travelers.

In Macau, Melco owns and operates flagship properties including City of Dreams Macau, Altira Macau and Studio City.

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