MGM Resorts International (NYSE:MGM) Rating Increased to Overweight at KeyCorp

Key Points

• KeyCorp upgraded MGM Resorts to Overweight with a $117 price target, implying a potential upside of about 196% from the prior close.
• MGM posted a strong quarter, reporting $1.60 EPS (vs. $0.64 est.) and revenue of $4.61 billion, while delivering a 26.04% return on equity.
• Despite recent upgrades and the earnings beat, analysts' consensus remains a Hold with an average price target of $46.81, and notable insider activity included IAC purchasing 450,000 shares while a director sold 37,500 shares.

MGM Resorts International (NYSE:MGM - Get Free Report) was upgraded by investment analysts at KeyCorp from a "sector weight" rating to an "overweight" rating in a research report issued to clients and investors on Monday. The brokerage currently has a $117.00 target price on the stock. KeyCorp's price objective points to a potential upside of 196.11% from the stock's previous close.

Several other research analysts have also issued reports on the stock. Texas Capital upgraded shares of MGM Resorts International to a "strong-buy" rating in a research report on Thursday, January 8th. Susquehanna dropped their price target on MGM Resorts International from $46.00 to $45.00 and set a "positive" rating for the company in a research note on Friday, February 6th. Wells Fargo & Company reduced their price objective on MGM Resorts International from $31.00 to $30.00 and set an "underweight" rating on the stock in a research report on Thursday, April 16th. Capital One Financial boosted their target price on MGM Resorts International from $46.00 to $51.00 and gave the stock an "overweight" rating in a research report on Friday, April 17th. Finally, Citigroup lifted their price target on shares of MGM Resorts International from $35.00 to $41.00 and gave the stock a "neutral" rating in a research note on Friday, February 6th. One investment 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 company's stock. Based on data from MarketBeat.com, MGM Resorts International currently has a consensus rating of "Hold" and an average price target of $46.81.

MGM Resorts International Price Performance

Shares of NYSE MGM opened at $39.51 on Monday. The stock's 50-day simple moving average is $36.82 and its two-hundred day simple moving average is $35.21. MGM Resorts International has a twelve month low of $29.18 and a twelve month high of $40.46. The firm has a market capitalization of $10.11 billion, a P/E ratio of 52.68 and a beta of 1.35. The company has a quick ratio of 1.20, a current ratio of 1.23 and a debt-to-equity ratio of 1.91.

MGM Resorts International (NYSE:MGM - Get Free Report) last posted its quarterly earnings data on Wednesday, February 4th. The company reported $1.60 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.96. MGM Resorts International had a net margin of 1.17% and a return on equity of 26.04%. The company had revenue of $4.61 billion for the quarter, compared to analysts' expectations of $4.42 billion. During the same period in the prior year, the business earned $0.45 earnings per share. As a group, equities analysts anticipate that MGM Resorts International will post 2.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Keith A. Meister sold 37,500 shares of the firm's stock in a transaction dated 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 sale, the director directly owned 5,347,978 shares of the company's stock, valued at approximately $183,275,206.06. This trade represents a 0.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, major shareholder Iac Inc. bought 450,000 shares of the business's stock in a transaction dated Tuesday, March 24th. The shares were bought at an average cost of $37.13 per share, for a total transaction of $16,708,500.00. Following the purchase, the insider directly owned 66,822,350 shares in the company, valued at approximately $2,481,113,855.50. This represents a 0.68% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 3.38% of the company's stock.

Institutional Trading of MGM Resorts International

Institutional investors and hedge funds have recently bought and sold shares of the stock. CYBER HORNET ETFs LLC bought a new stake in shares of MGM Resorts International during the second quarter valued at approximately $25,000. Global Retirement Partners LLC boosted its holdings in shares of MGM Resorts International by 55.9% during the 4th quarter. Global Retirement Partners LLC now owns 784 shares of the company's stock valued at $29,000 after buying an additional 281 shares in the last quarter. Mather Group LLC. purchased a new stake in shares of MGM Resorts International in the 3rd quarter worth about $33,000. Elyxium Wealth LLC purchased a new position in MGM Resorts International during the 4th quarter valued at about $42,000. Finally, City Holding Co. bought a new stake in MGM Resorts International during the fourth quarter worth about $44,000. 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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