MGM Resorts International (NYSE:MGM) Price Target Cut to $59.00 by Analysts at Mizuho

Key Points

• Mizuho lowered its price target on MGM from $62 to $59 but maintained an "outperform" rating, with the new target implying roughly a 45% upside from the prior close.
• Market consensus remains a "Hold" with a mean price target of $46.63, while MGM trades near $40.62 after a quarter that beat estimates (EPS $1.60 vs. $0.64; $4.61B revenue) and saw notable insider buying (IAC bought 450,000 shares) amid ~68% institutional ownership.

MGM Resorts International (NYSE:MGM - Get Free Report) had its price target reduced by research analysts at Mizuho from $62.00 to $59.00 in a research report issued to clients and investors on Monday,MarketScreener reports. The firm presently has an "outperform" rating on the stock. Mizuho's price objective would indicate a potential upside of 45.27% from the stock's previous close.

MGM has been the topic of several other research reports. Stifel Nicolaus dropped their target price on MGM Resorts International from $50.00 to $48.00 and set a "buy" rating on the stock in a research report on Tuesday, April 7th. Susquehanna reduced their price target on MGM Resorts International from $46.00 to $45.00 and set a "positive" rating for the company in a report on Friday, February 6th. Texas Capital raised MGM Resorts International to a "strong-buy" rating in a report on Thursday, January 8th. Deutsche Bank Aktiengesellschaft increased their price objective on MGM Resorts International from $43.00 to $44.00 and gave the stock a "buy" rating in a research report on Thursday, February 12th. Finally, JPMorgan Chase & Co. raised their target price on MGM Resorts International from $41.00 to $42.00 and gave the company a "neutral" rating in a report on Thursday, April 16th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $46.63.

MGM Resorts International Stock Performance

Shares of MGM opened at $40.62 on Monday. The stock has a market capitalization of $10.39 billion, a P/E ratio of 53.61 and a beta of 1.35. The company has a debt-to-equity ratio of 1.91, a quick ratio of 1.20 and a current ratio of 1.23. MGM Resorts International has a 1 year low of $29.18 and a 1 year high of $40.46. The company's fifty day moving average is $36.82 and its two-hundred day moving average is $35.21.

MGM Resorts International (NYSE:MGM - Get Free Report) last released its earnings results on Wednesday, February 4th. The company reported $1.60 EPS for the quarter, topping the consensus estimate of $0.64 by $0.96. The company had revenue of $4.61 billion during the quarter, compared to analysts' expectations of $4.42 billion. MGM Resorts International had a net margin of 1.17% and a return on equity of 26.04%. During the same quarter last year, the business earned $0.45 EPS. On average, sell-side analysts predict that MGM Resorts International will post 2.03 earnings per share for the current year.

Insider Buying and Selling

In other news, major shareholder Iac Inc. bought 450,000 shares of the stock in a transaction on Tuesday, March 24th. The shares were bought at an average price of $37.13 per share, with a total value of $16,708,500.00. Following the completion of the acquisition, the insider owned 66,822,350 shares of the company's stock, valued at approximately $2,481,113,855.50. This trade represents a 0.68% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Keith A. Meister sold 37,500 shares of the firm's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $34.27, for a total value of $1,285,125.00. Following the completion of the transaction, the director owned 5,347,978 shares of the company's stock, valued at approximately $183,275,206.06. This represents a 0.70% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 3.38% 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 business. Davis Selected Advisers grew its position in shares of MGM Resorts International by 12.0% in the fourth quarter. Davis Selected Advisers now owns 26,820,202 shares of the company's stock valued at $978,669,000 after purchasing an additional 2,866,750 shares during the last quarter. Vanguard Group Inc. raised its position in shares of MGM Resorts International by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 23,782,004 shares of the company's stock worth $867,805,000 after purchasing an additional 205,127 shares during the last quarter. AQR Capital Management LLC raised its position in shares of MGM Resorts International by 202.5% during the 3rd quarter. AQR Capital Management LLC now owns 8,446,982 shares of the company's stock worth $292,772,000 after purchasing an additional 5,654,757 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in MGM Resorts International by 81.4% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 7,642,060 shares of the company's stock valued at $264,874,000 after buying an additional 3,429,946 shares in the last quarter. Finally, State Street Corp grew its holdings in MGM Resorts International by 0.4% during the 4th quarter. State Street Corp now owns 7,517,622 shares of the company's stock valued at $274,318,000 after buying an additional 30,962 shares during the last quarter. 68.11% of the stock is currently owned by hedge funds and other institutional investors.

MGM Resorts International Company Profile

MGM Resorts International is a leading global hospitality and entertainment company that develops, owns and operates destination resorts, hotels and casinos. Its properties feature integrated gaming floors alongside luxury accommodations, fine dining and retail outlets, live entertainment venues and convention facilities. The company also offers loyalty programs, sports betting and digital gaming experiences to enhance guest engagement and drive repeat visitation.

The company traces its heritage to the opening of the original MGM Grand Hotel & Casino on the Las Vegas Strip in 1973.

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