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Melco Resorts & Entertainment (NASDAQ:MLCO) Trading Down 5% - Should You Sell?

Melco Resorts & Entertainment logo with Consumer Discretionary background

Key Points

  • Melco Resorts & Entertainment's shares dropped 5% during trading, falling from a previous close of $8.93 to $8.48, with a trading volume significantly lower than average.
  • Several analysts have given mixed reviews, with JPMorgan upgrading the stock to "overweight" and increasing its price target, while others, like Weiss Ratings, issued a "sell" rating.
  • The company reported a 14.5% year-over-year increase in revenue for the last quarter, outperforming analyst expectations with earnings of $0.23 per share.
  • Interested in Melco Resorts & Entertainment? Here are five stocks we like better.

Shares of Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report) were down 5% during trading on Friday . The company traded as low as $8.47 and last traded at $8.48. Approximately 797,988 shares were traded during trading, a decline of 78% from the average daily volume of 3,678,548 shares. The stock had previously closed at $8.93.

Analyst Ratings Changes

Several research firms have recently issued reports on MLCO. JPMorgan Chase & Co. raised Melco Resorts & Entertainment from a "neutral" rating to an "overweight" rating and upped their price objective for the company from $7.20 to $9.50 in a research note on Tuesday, July 1st. Wall Street Zen downgraded Melco Resorts & Entertainment from a "buy" rating to a "hold" rating in a report on Friday, September 26th. Susquehanna raised their target price on Melco Resorts & Entertainment from $8.00 to $10.00 and gave the stock a "positive" rating in a research report on Wednesday, July 30th. Weiss Ratings reiterated a "sell (d)" rating on shares of Melco Resorts & Entertainment in a research report on Saturday, September 27th. Finally, Citigroup boosted their target price 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. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $8.15.

Get Our Latest Analysis on MLCO

Melco Resorts & Entertainment Price Performance

The business's fifty day moving average price is $9.29 and its 200-day moving average price is $7.34. The stock has a market capitalization of $3.54 billion, a price-to-earnings ratio of 64.85 and a beta of 0.71.

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

Institutional Trading of Melco Resorts & Entertainment

Institutional investors and hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd bought a new position in shares of Melco Resorts & Entertainment during the first quarter valued at about $34,000. FNY Investment Advisers LLC purchased a new position in shares of Melco Resorts & Entertainment in the 2nd quarter worth approximately $38,000. Brown Advisory Inc. bought a new position in shares of Melco Resorts & Entertainment in the first quarter valued at approximately $53,000. Aigen Investment Management LP purchased a new stake in shares of Melco Resorts & Entertainment during the first quarter valued at approximately $59,000. Finally, Solstein Capital LLC lifted its holdings in 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 during the period. Hedge funds and other institutional investors own 39.62% of the company's stock.

Melco Resorts & Entertainment Company Profile

(Get Free Report)

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.

See Also

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