MGM Resorts International (NYSE:MGM) Price Target Cut to $58.00 by Analysts at Mizuho

Key Points

• Mizuho has reduced its price target for MGM Resorts International from $59.00 to $58.00, maintaining an "outperform" rating on the stock, suggesting a potential upside of 59.00% from its previous close.
• In recent analyst reports, MGM received mixed ratings, with upgrades from Wall Street Zen to "hold" and downgrades from other firms, leading to a current consensus rating of "Moderate Buy" and an average price target of $48.56.
• MGM's recent quarterly earnings showed an EPS of $0.79, surpassing estimates, with revenue up 1.8% year-over-year, indicating strong financial performance amidst fluctuating stock valuations.

MGM Resorts International (NYSE:MGM - Get Free Report) had its target price reduced by equities research analysts at Mizuho from $59.00 to $58.00 in a research note issued on Thursday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Mizuho's price objective indicates a potential upside of 59.00% from the company's previous close.

Several other analysts have also recently issued reports on the company. Wall Street Zen upgraded MGM Resorts International from a "sell" rating to a "hold" rating in a research report on Thursday, May 22nd. Citizens Jmp lowered shares of MGM Resorts International from an "outperform" rating to a "market perform" rating in a report on Thursday, June 26th. Truist Financial boosted their target price on shares of MGM Resorts International from $45.00 to $50.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. UBS Group upped their target price on shares of MGM Resorts International from $37.00 to $42.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 8th. Finally, Seaport Res Ptn downgraded shares of MGM Resorts International from a "strong-buy" rating to a "hold" rating in a report on Monday, July 21st. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $48.56.

MGM Resorts International Stock Performance

NYSE MGM traded down $1.40 on Thursday, reaching $36.48. 7,575,373 shares of the stock were exchanged, compared to its average volume of 5,437,897. The company has a current ratio of 1.31, a quick ratio of 1.26 and a debt-to-equity ratio of 1.79. MGM Resorts International has a one year low of $25.30 and a one year high of $43.99. The firm has a market capitalization of $9.93 billion, a PE ratio of 16.28, a PEG ratio of 2.42 and a beta of 1.76. The company's 50-day simple moving average is $34.81 and its two-hundred day simple moving average is $33.32.

MGM Resorts International (NYSE:MGM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The company reported $0.79 EPS for the quarter, beating the consensus estimate of $0.58 by $0.21. MGM Resorts International had a net margin of 3.95% and a return on equity of 20.64%. The firm had revenue of $4.40 billion for the quarter, compared to the consensus estimate of $4.28 billion. During the same period last year, the firm earned $0.86 EPS. The company's revenue was up 1.8% on a year-over-year basis. Analysts expect that MGM Resorts International will post 2.21 EPS for the current fiscal year.

MGM Resorts International declared that its Board of Directors has approved a stock repurchase plan on Wednesday, April 30th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to purchase up to 22.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Insider Activity at MGM Resorts International

In other MGM Resorts International news, Director Daniel J. Taylor sold 5,261 shares of the stock in a transaction on Tuesday, May 13th. The stock was sold at an average price of $34.93, for a total value of $183,766.73. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Keith A. Meister sold 60,000 shares of MGM Resorts International stock in a transaction on Friday, June 13th. The stock was sold at an average price of $32.09, for a total value of $1,925,400.00. Following the sale, the director owned 5,627,478 shares of the company's stock, valued at approximately $180,585,769.02. This trade represents a 1.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 105,261 shares of company stock worth $3,486,367. Insiders own 3.06% of the company's stock.

Hedge Funds Weigh In On MGM Resorts International

Hedge funds have recently added to or reduced their stakes in the stock. Kingstone Capital Partners Texas LLC bought a new position in MGM Resorts International during the 2nd quarter worth about $171,632,000. Norges Bank bought a new position in shares of MGM Resorts International in the 4th quarter worth $88,033,000. Eminence Capital LP bought a new stake in shares of MGM Resorts International in the 4th quarter valued at about $72,408,000. Helikon Investments Ltd bought a new position in shares of MGM Resorts International during the 1st quarter worth approximately $54,418,000. Finally, Fuller & Thaler Asset Management Inc. purchased a new position in MGM Resorts International during the 1st quarter worth $47,631,000. 68.11% of the stock is currently owned by institutional investors.

About MGM Resorts International

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.

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