Melco Resorts & Entertainment (NASDAQ:MLCO) Shares Gap Down - Here's Why

Key Points

• Melco Resorts & Entertainment shares gapped down, opening at $5.19 versus the prior close of $5.52, before recovering to around $5.55.
• Analyst sentiment remains mixed but leans positive: MarketBeat reports a “Moderate Buy” consensus rating and an average price target of $7.43, despite several recent downgrades and target-price cuts.
• The company met quarterly earnings expectations with $0.06 in EPS, while revenue declined 5.7% year over year; institutional investors own approximately 39.6% of the stock.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $5.52, but opened at $5.19. Melco Resorts & Entertainment shares last traded at $5.5490, with a volume of 380,003 shares traded.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on MLCO. CICC Research raised Melco Resorts & Entertainment to an "outperform" rating in a research report on Sunday, April 19th. Morgan Stanley downgraded Melco Resorts & Entertainment from an "overweight" rating to a "negative" rating in a report on Monday, June 22nd. CLSA upgraded shares of Melco Resorts & Entertainment from a "hold" rating to an "outperform" rating and cut their price objective for the company from $6.10 to $6.00 in a report on Friday, July 10th. Citigroup decreased their price objective on shares of Melco Resorts & Entertainment from $10.50 to $9.40 and set a "buy" rating for the company in a research report on Friday, July 10th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a "neutral" rating for the company in a research note on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Melco Resorts & Entertainment currently has an average rating of "Moderate Buy" and an average price target of $7.43.

Melco Resorts & Entertainment Stock Up 0.3%

The stock has a 50-day moving average of $5.48 and a 200 day moving average of $5.65. The stock has a market cap of $2.15 billion, a PE ratio of 9.54, a price-to-earnings-growth ratio of 3.47 and a beta of 0.59.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The company reported $0.06 EPS for the quarter, meeting the consensus estimate of $0.06. Melco Resorts & Entertainment had a net margin of 4.33% and a negative return on equity of 32.60%. The business's revenue for the quarter was down 5.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.04 earnings per share. On average, equities analysts anticipate that Melco Resorts & Entertainment Limited will post 0.51 EPS for the current year.

Institutional Investors Weigh In On Melco Resorts & Entertainment

Several hedge funds have recently added to or reduced their stakes in the business. Osaic Holdings Inc. lifted its position in Melco Resorts & Entertainment by 8.3% during the 2nd 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 period. Orion Porfolio Solutions LLC raised its stake 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 purchasing an additional 1,819 shares during the last quarter. Fox Run Management L.L.C. lifted its holdings 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 purchasing an additional 2,256 shares during the period. Ameriprise Financial Inc. grew its position in Melco Resorts & Entertainment by 0.9% in the 3rd quarter. Ameriprise Financial Inc. now owns 259,631 shares of the company's stock valued at $2,380,000 after buying an additional 2,442 shares during the last quarter. Finally, The Manufacturers Life Insurance Company increased its stake in Melco Resorts & Entertainment by 3.7% in the 4th quarter. The Manufacturers Life Insurance Company now owns 69,325 shares of the company's stock valued at $525,000 after buying an additional 2,444 shares during the period. 39.62% of the stock is owned by hedge funds and other institutional investors.

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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