Melco Resorts & Entertainment (NASDAQ:MLCO) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Melco Resorts (NASDAQ:MLCO) from a "buy" to a "hold" rating in a research report issued Sunday.
• Melco posted Q1 operating revenues up ~11% to about US$1.37B and Adjusted Property EBITDA up ~12% to US$381M, and the board approved a new US$500M repurchase program.
• Despite the operating strength, the company faces high leverage (total debt ~US$6.67B) and regional travel headwinds, while analysts remain mixed—MarketBeat shows a "Moderate Buy" consensus with a US$9.06 average price target.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Sunday.

Other research analysts have also recently issued reports about the stock. Weiss Ratings reissued a "sell (d)" rating on shares of Melco Resorts & Entertainment in a research report on Thursday, January 22nd. Texas Capital upgraded shares of Melco Resorts & Entertainment to a "strong-buy" rating in a research note on Friday, January 23rd. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $7.70 target price (down from $11.00) on shares of Melco Resorts & Entertainment in a research note on Friday, January 16th. UBS Group upgraded shares of Melco Resorts & Entertainment from a "neutral" rating to a "buy" rating and set a $9.50 target price for the company in a research note on Monday, February 16th. Finally, CICC Research upgraded shares of Melco Resorts & Entertainment to an "outperform" rating in a research note on Sunday, April 19th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Melco Resorts & Entertainment currently has an average rating of "Moderate Buy" and a consensus price target of $9.06.

Melco Resorts & Entertainment Price Performance

Shares of NASDAQ:MLCO opened at $5.46 on Friday. The firm has a fifty day moving average price of $5.72 and a 200 day moving average price of $6.95. Melco Resorts & Entertainment has a 1-year low of $5.13 and a 1-year high of $10.15. The stock has a market cap of $2.22 billion, a P/E ratio of 9.41 and a beta of 0.60.

Hedge Funds Weigh In On Melco Resorts & Entertainment

Several institutional investors have recently modified their holdings of the company. Osaic Holdings Inc. grew its position in shares of Melco Resorts & Entertainment by 8.3% during the second quarter. Osaic Holdings Inc. now owns 16,990 shares of the company's stock worth $123,000 after acquiring an additional 1,295 shares during the last quarter. Orion Porfolio Solutions LLC grew its position in shares of Melco Resorts & Entertainment by 15.5% during the second quarter. Orion Porfolio Solutions LLC now owns 13,556 shares of the company's stock worth $98,000 after acquiring an additional 1,819 shares during the last quarter. Fox Run Management L.L.C. grew its position in shares of Melco Resorts & Entertainment by 5.1% during the fourth quarter. Fox Run Management L.L.C. now owns 46,211 shares of the company's stock worth $350,000 after acquiring an additional 2,256 shares during the last quarter. Ameriprise Financial Inc. grew its position in shares of Melco Resorts & Entertainment by 0.9% during the third quarter. Ameriprise Financial Inc. now owns 259,631 shares of the company's stock worth $2,380,000 after acquiring an additional 2,442 shares during the last quarter. Finally, The Manufacturers Life Insurance Company grew its position in shares of Melco Resorts & Entertainment by 3.7% during the fourth quarter. The Manufacturers Life Insurance Company now owns 69,325 shares of the company's stock worth $525,000 after acquiring an additional 2,444 shares during the last quarter. Institutional investors own 39.62% of the company's stock.

Melco Resorts & Entertainment News Roundup

Here are the key news stories impacting Melco Resorts & Entertainment this week:

• Positive Sentiment: Q1 operating strength — Total operating revenues rose ~11% year-over-year to about US$1.37B and Adjusted Property EBITDA increased ~12% to US$381M, driven by improved mass-market performance across Macau and Studio City. Melco Resorts Announces Unaudited First Quarter 2026 Earnings
• Positive Sentiment: Share buyback — Board approved a new US$500M repurchase program (in addition to the prior program), a shareholder-friendly move that can support EPS and shares over time. Melco Resorts Announces Unaudited First Quarter 2026 Earnings
• Neutral Sentiment: Mixed EPS/estimate signals — Coverage shows revenue beat but some outlets report varying EPS comparisons versus consensus (market reports differ), creating short-term uncertainty around the earnings takeaway. Melco Resorts (MLCO) Q1 Earnings and Revenues Beat Estimates
• Neutral Sentiment: IP acquisition announced — Melco agreed to acquire certain trademarks and IP from Melco International for US$375M (US$300M at signing). Strategic for branding but uses cash / increases near-term cash outflows. Melco Resorts Announces Unaudited First Quarter 2026 Earnings
• Negative Sentiment: Leverage and interest burden — Total debt remains large (~US$6.67B) and Q1 interest expense was high (about US$111.8M), contributing to ~US$101M of net non‑operating expenses; this elevates sensitivity to rates and cash flow. Melco Resorts Announces Unaudited First Quarter 2026 Earnings
• Negative Sentiment: Regional travel headwinds — City of Dreams Mediterranean and some satellite operations were hit by reduced tourism linked to regional conflicts, pressuring non-gaming revenue and near-term recovery visibility. Melco Resorts Announces Unaudited First Quarter 2026 Earnings

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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