MGM Resorts International (NYSE:MGM) Shares Gap Down - Here's What Happened

Key Points

• Gapped down: MGM shares opened Tuesday at $35.75 after closing at $36.75 and last traded around $36.15 on volume of ~516,276 shares.
• Quarterly beat: MGM reported $1.60 EPS vs. $0.64 expected and $4.61B revenue vs. $4.42B expected, while the stock trades with a P/E of 48.97 and a market cap of $9.4 billion.
• Mixed analyst and insider activity: The consensus is an average "Hold" rating with a $42 price target after several revisions, and insiders were active—IAC bought 450,000 shares while director Keith Meister sold 37,500 shares.

MGM Resorts International (NYSE:MGM - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $36.75, but opened at $35.75. MGM Resorts International shares last traded at $36.1490, with a volume of 516,276 shares traded.

Analyst Ratings Changes

Several equities analysts recently weighed in on the company. UBS Group reduced their target price on MGM Resorts International from $40.00 to $39.00 and set a "neutral" rating on the stock in a research report on Friday. Susquehanna dropped their price objective on shares of MGM Resorts International from $46.00 to $45.00 and set a "positive" rating for the company in a research report on Friday, February 6th. Citigroup increased their price objective on shares of MGM Resorts International from $35.00 to $41.00 and gave the stock a "neutral" rating in a research report on Friday, February 6th. Stifel Nicolaus lowered their price objective on MGM Resorts International from $50.00 to $48.00 and set a "buy" rating for the company in a research note on Tuesday, April 7th. Finally, Deutsche Bank Aktiengesellschaft raised their price objective on MGM Resorts International from $43.00 to $44.00 and gave the company a "buy" rating in a research note on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, seven have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $42.00.

MGM Resorts International Stock Down 0.0%

The company has a debt-to-equity ratio of 1.91, a quick ratio of 1.20 and a current ratio of 1.23. The stock has a 50 day moving average price of $36.35 and a 200 day moving average price of $34.94. The company has a market cap of $9.40 billion, a P/E ratio of 48.97 and a beta of 1.35.

MGM Resorts International (NYSE:MGM - Get Free Report) last posted its quarterly earnings data on Wednesday, February 4th. The company reported $1.60 EPS for the quarter, topping analysts' consensus estimates of $0.64 by $0.96. The company had revenue of $4.61 billion for the quarter, compared to the consensus estimate of $4.42 billion. MGM Resorts International had a return on equity of 26.04% and a net margin of 1.17%.During the same quarter in the previous year, the business earned $0.45 EPS. Research analysts expect that MGM Resorts International will post 2.21 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Keith A. Meister sold 37,500 shares of the business's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $34.27, for a total transaction of $1,285,125.00. Following the sale, the director directly owned 5,347,978 shares of the company's stock, valued at $183,275,206.06. The trade was a 0.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 completion of the transaction, the insider directly owned 66,822,350 shares of the company's stock, valued at $2,481,113,855.50. This trade represents a 0.68% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 3.38% of the stock is owned by insiders.

Institutional Investors Weigh In On MGM Resorts International

A number of institutional investors and hedge funds have recently modified their holdings of the stock. CYBER HORNET ETFs LLC acquired a new position in MGM Resorts International during the second quarter valued at $25,000. Mendota Financial Group LLC acquired a new position in MGM Resorts International during the third quarter valued at $27,000. Global Retirement Partners LLC raised its position in MGM Resorts International by 55.9% during the fourth quarter. Global Retirement Partners LLC now owns 784 shares of the company's stock valued at $29,000 after buying an additional 281 shares during the period. Mather Group LLC. acquired a new position in MGM Resorts International during the third quarter valued at $33,000. Finally, Elyxium Wealth LLC acquired a new position in MGM Resorts International during the fourth quarter valued at $42,000. 68.11% of the stock is owned by institutional investors and hedge funds.

About MGM Resorts International

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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