Melco Resorts & Entertainment Limited (NASDAQ:MLCO) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Melco Resorts & Entertainment Limited has received a consensus rating of "Moderate Buy" from six brokerages, with four firms recommending a buy and one each recommending a hold and a sell.
• The average one-year price target set by brokerages for Melco Resorts is $8.15, with recent upgrades from several institutions raising their price targets significantly.
• In the most recent earnings report, Melco posted $0.23 EPS, surpassing analyst expectations and demonstrating a 14.5% increase in quarterly revenue compared to the prior year.

Shares of Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report) have earned a consensus rating of "Moderate Buy" from the seven research firms that are presently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, one has given a hold rating and five have assigned a buy rating to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $8.15.

A number of equities analysts have recently commented on the stock. Wall Street Zen upgraded shares of Melco Resorts & Entertainment from a "hold" rating to a "buy" rating in a research report on Monday, July 7th. Bank of America raised their price objective on shares of Melco Resorts & Entertainment from $5.70 to $6.60 and gave the company a "neutral" rating in a research report on Tuesday, May 20th. Citigroup raised their price objective on shares of Melco Resorts & Entertainment from $11.00 to $11.50 and gave the company a "buy" rating in a research report on Friday, August 1st. CLSA upgraded shares of Melco Resorts & Entertainment from a "hold" rating to an "outperform" rating in a research report on Wednesday. Finally, Susquehanna raised their price objective on shares of Melco Resorts & Entertainment from $8.00 to $10.00 and gave the company a "positive" rating in a research report on Wednesday, July 30th.

Melco Resorts & Entertainment Price Performance

NASDAQ:MLCO traded up $0.13 on Tuesday, reaching $10.13. 2,205,242 shares of the company's stock were exchanged, compared to its average volume of 2,705,574. The firm has a market cap of $4.25 billion, a price-to-earnings ratio of 77.93 and a beta of 0.77. Melco Resorts & Entertainment has a 52 week low of $4.55 and a 52 week high of $10.14. The stock has a fifty day simple moving average of $8.84 and a 200-day simple moving average of $6.79.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.14. Melco Resorts & Entertainment had a net margin of 1.15% and a negative return on equity of 18.47%. The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same quarter last year, the business earned $0.05 earnings per share. The company's quarterly revenue was up 14.5% on a year-over-year basis. As a group, sell-side analysts predict that Melco Resorts & Entertainment will post 0.16 EPS for the current year.

Institutional Investors Weigh In On Melco Resorts & Entertainment

Hedge funds have recently bought and sold shares of the stock. FNY Investment Advisers LLC bought a new stake in Melco Resorts & Entertainment during the second quarter valued at approximately $38,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Melco Resorts & Entertainment during the first quarter worth approximately $34,000. Solstein Capital LLC raised its stake in shares of Melco Resorts & Entertainment by 74.9% during the second quarter. Solstein Capital LLC now owns 9,340 shares of the company's stock worth $68,000 after acquiring an additional 4,000 shares in the last quarter. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Melco Resorts & Entertainment during the second quarter worth approximately $71,000. Finally, Brown Advisory Inc. purchased a new position in shares of Melco Resorts & Entertainment during the first quarter worth approximately $53,000. 39.62% of the stock is currently owned by institutional investors.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities.