Melco Resorts & Entertainment (NASDAQ:MLCO) Trading Down 4.6% - Here's What Happened

Key Points

• Melco Resorts & Entertainment's stock fell by 4.6%, trading at $9.51, with a significant drop in trading volume at 53,922 shares compared to the average of nearly 3.8 million shares.
• Despite the recent decline, a number of analysts have upgraded their ratings on Melco Resorts, with a consensus rating of "Moderate Buy" and a price target of $8.15.
• The company reported a quarterly earnings growth of 14.5% year-over-year, with an EPS of $0.23, surpassing analysts’ expectations of $0.09.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report)'s share price dropped 4.6% during mid-day trading on Friday . The stock traded as low as $9.65 and last traded at $9.51. Approximately 53,922 shares traded hands during trading, a decline of 99% from the average daily volume of 3,787,084 shares. The stock had previously closed at $9.96.

Analysts Set New Price Targets

MLCO has been the subject of several recent analyst reports. JPMorgan Chase & Co. upgraded Melco Resorts & Entertainment from a "neutral" rating to an "overweight" rating and increased their price objective for the stock from $7.20 to $9.50 in a research note on Tuesday, July 1st. Zacks Research upgraded Melco Resorts & Entertainment from a "hold" rating to a "strong-buy" rating in a research note on Thursday, September 4th. Bank of America increased their price objective on Melco Resorts & Entertainment from $5.70 to $6.60 and gave the stock a "neutral" rating in a research note on Tuesday, May 20th. Wall Street Zen upgraded Melco Resorts & Entertainment from a "hold" rating to a "buy" rating in a research note on Monday, July 7th. Finally, CLSA upgraded Melco Resorts & Entertainment from a "hold" rating to an "outperform" rating in a research note on Wednesday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $8.15.

Melco Resorts & Entertainment Price Performance

The stock has a 50-day moving average of $9.15 and a 200 day moving average of $7.03. The stock has a market capitalization of $4.02 billion, a price-to-earnings ratio of 73.81 and a beta of 0.77.

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

Hedge Funds Weigh In On Melco Resorts & Entertainment

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Osaic Holdings Inc. boosted its holdings in 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 buying an additional 1,295 shares during the last quarter. Orion Porfolio Solutions LLC boosted its holdings in 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 buying an additional 1,819 shares during the last quarter. Hudson Bay Capital Management LP boosted its holdings in Melco Resorts & Entertainment by 271.3% during the second quarter. Hudson Bay Capital Management LP now owns 1,473,502 shares of the company's stock worth $10,653,000 after buying an additional 1,076,606 shares during the last quarter. Sender Co & Partners Inc. bought a new position in Melco Resorts & Entertainment during the second quarter worth about $251,000. Finally, Vident Advisory LLC boosted its holdings in Melco Resorts & Entertainment by 77.3% during the second quarter. Vident Advisory LLC now owns 30,847 shares of the company's stock worth $223,000 after buying an additional 13,448 shares during the last quarter. Institutional investors own 39.62% of the company's stock.

Melco Resorts & Entertainment Company Profile

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.