MGM Resorts International (NYSE:MGM) Price Target Lowered to $34.00 at The Goldman Sachs Group

Key Points

• The Goldman Sachs Group has lowered its price target for MGM Resorts International from $37.00 to $34.00, maintaining a "sell" rating on the stock.
• Other brokerages have also adjusted their ratings, with UBS Group setting a target of $39.00 and Mizuho lowering its target to $56.00.
• MGM reported a quarterly earnings of $0.79 per share, surpassing analyst expectations of $0.58, along with a revenue of $4.40 billion for the quarter.

MGM Resorts International (NYSE:MGM - Get Free Report) had its price objective decreased by equities researchers at The Goldman Sachs Group from $37.00 to $34.00 in a research note issued on Wednesday,MarketScreener reports. The firm presently has a "sell" rating on the stock. The Goldman Sachs Group's target price would indicate a potential upside of 0.20% from the company's current price.

Several other brokerages have also recently commented on MGM. UBS Group dropped their price target on shares of MGM Resorts International from $44.00 to $39.00 and set a "neutral" rating on the stock in a research report on Thursday, September 11th. Mizuho cut their target price on shares of MGM Resorts International from $58.00 to $56.00 and set an "outperform" rating for the company in a research note on Monday, September 22nd. Weiss Ratings restated a "sell (d+)" rating on shares of MGM Resorts International in a research report on Saturday, September 27th. JMP Securities restated a "market perform" rating on shares of MGM Resorts International in a report on Thursday, June 26th. Finally, Citizens Jmp downgraded MGM Resorts International from an "outperform" rating to a "market perform" rating in a report on Thursday, June 26th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $48.50.

MGM Resorts International Stock Performance

MGM stock opened at $33.93 on Wednesday. The company has a 50-day simple moving average of $36.26 and a 200 day simple moving average of $34.00. The company has a market capitalization of $9.24 billion, a P/E ratio of 18.64, a PEG ratio of 1.48 and a beta of 1.67. The company has a quick ratio of 1.18, a current ratio of 1.22 and a debt-to-equity ratio of 1.67. MGM Resorts International has a fifty-two week low of $25.30 and a fifty-two week high of $42.53.

MGM Resorts International (NYSE:MGM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.79 EPS for the quarter, beating analysts' consensus estimates of $0.58 by $0.21. MGM Resorts International had a net margin of 3.13% and a return on equity of 19.39%. The business had revenue of $4.40 billion for the quarter, compared to analyst estimates of $4.28 billion. During the same quarter last year, the business earned $0.86 earnings per share. The business's revenue for the quarter was up 1.8% on a year-over-year basis. Sell-side analysts predict that MGM Resorts International will post 2.21 earnings per share for the current fiscal year.

Insider Activity

In other news, insider John Mcmanus sold 60,000 shares of the firm's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $36.12, for a total transaction of $2,167,200.00. Following the completion of the sale, the insider directly owned 31,521 shares of the company's stock, valued at $1,138,538.52. This trade represents a 65.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Keith A. Meister sold 242,000 shares of the stock in a transaction that occurred on Thursday, September 11th. The stock was sold at an average price of $35.42, for a total value of $8,571,640.00. Following the completion of the transaction, the director owned 5,385,478 shares in the company, valued at $190,753,630.76. This represents a 4.30% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 3.06% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MGM. Davis Selected Advisers grew its holdings in MGM Resorts International by 14.4% during the second quarter. Davis Selected Advisers now owns 23,821,109 shares of the company's stock valued at $819,208,000 after purchasing an additional 3,006,052 shares during the last quarter. Helikon Investments Ltd grew its position in shares of MGM Resorts International by 379.9% in the second quarter. Helikon Investments Ltd now owns 8,810,322 shares of the company's stock valued at $302,987,000 after purchasing an additional 6,974,347 shares during the last quarter. Invesco Ltd. increased its stake in shares of MGM Resorts International by 7.7% in the first quarter. Invesco Ltd. now owns 6,233,213 shares of the company's stock worth $184,752,000 after purchasing an additional 447,870 shares during the period. Goldentree Asset Management LP lifted its position in shares of MGM Resorts International by 20.7% during the 2nd quarter. Goldentree Asset Management LP now owns 5,402,092 shares of the company's stock worth $185,778,000 after purchasing an additional 924,810 shares during the last quarter. Finally, Kingstone Capital Partners Texas LLC bought a new position in MGM Resorts International during the second quarter worth $171,632,000. Institutional investors and hedge funds own 68.11% of the company's stock.

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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