MGM Resorts International (NYSE:MGM) Shares Gap Up Following Analyst Upgrade

Key Points

• MGM Resorts International shares jumped after Susquehanna raised its price target from $45 to $50 while keeping a positive rating, helping the stock open well above its previous close.
• Other analysts have been mixed on MGM, with recent price-target changes ranging from bullish upgrades to bearish ratings. Overall, the stock’s consensus rating remains Hold with an average target price of $48.47.
• The company recently reported Q1 earnings that missed EPS expectations at $0.49 versus $0.56 expected, though revenue came in slightly above estimates at $4.45 billion and was up 4.2% year over year.

MGM Resorts International (NYSE:MGM - Get Free Report) shares gapped up prior to trading on Monday after Susquehanna raised their price target on the stock from $45.00 to $50.00. The stock had previously closed at $43.67, but opened at $48.46. Susquehanna currently has a positive rating on the stock. MGM Resorts International shares last traded at $49.9090, with a volume of 4,746,333 shares trading hands.

Several other analysts have also recently commented on MGM. Stifel Nicolaus decreased their price target on shares of MGM Resorts International from $50.00 to $48.00 and set a "buy" rating on the stock in a research note on Tuesday, April 7th. Capital One Financial upped their price objective on MGM Resorts International from $46.00 to $51.00 and gave the stock an "overweight" rating in a report on Friday, April 17th. Truist Financial upgraded MGM Resorts International from a "hold" rating to a "buy" rating and increased their price objective for the company from $42.00 to $55.00 in a research report on Wednesday, May 27th. Wells Fargo & Company lifted their target price on MGM Resorts International from $30.00 to $33.00 and gave the company an "underweight" rating in a research note on Thursday, April 30th. Finally, The Goldman Sachs Group boosted their target price on MGM Resorts International from $34.00 to $38.00 and gave the stock a "sell" rating in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $48.47.

Insider Buying and Selling at MGM Resorts International

In other MGM Resorts International news, major shareholder Iac Inc. bought 550,000 shares of the stock in a transaction on Monday, March 23rd. The stock was purchased at an average price of $37.30 per share, with a total value of $20,515,000.00. Following the acquisition, the insider owned 66,372,350 shares of the company's stock, valued at approximately $2,475,688,655. The trade was a 0.84% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Keith A. Meister sold 37,500 shares of the company's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $34.27, for a total transaction of $1,285,125.00. Following the sale, the director 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 position. The disclosure for this sale is available in the SEC filing. Insiders own 3.38% of the company's stock.

Hedge Funds Weigh In On MGM Resorts International

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Davis Selected Advisers raised its position in shares of MGM Resorts International by 12.0% in the 4th quarter. Davis Selected Advisers now owns 26,820,202 shares of the company's stock valued at $978,669,000 after acquiring an additional 2,866,750 shares during the period. Vanguard Group Inc. grew its holdings in MGM Resorts International by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 23,782,004 shares of the company's stock valued at $867,805,000 after purchasing an additional 205,127 shares during the period. AQR Capital Management LLC grew its holdings in MGM Resorts International by 202.5% during the third quarter. AQR Capital Management LLC now owns 8,446,982 shares of the company's stock valued at $292,772,000 after purchasing an additional 5,654,757 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in MGM Resorts International by 81.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 7,642,060 shares of the company's stock valued at $264,874,000 after purchasing an additional 3,429,946 shares in the last quarter. Finally, State Street Corp increased its stake in MGM Resorts International by 0.4% in the fourth quarter. State Street Corp now owns 7,517,622 shares of the company's stock valued at $274,318,000 after purchasing an additional 30,962 shares in the last quarter. Institutional investors own 68.11% of the company's stock.

MGM Resorts International Trading Up 15.3%

The company's fifty day simple moving average is $38.01 and its two-hundred day simple moving average is $36.27. The company has a market capitalization of $12.89 billion, a price-to-earnings ratio of 69.97 and a beta of 1.31. The company has a quick ratio of 1.30, a current ratio of 1.33 and a debt-to-equity ratio of 1.93.

MGM Resorts International (NYSE:MGM - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported $0.49 EPS for the quarter, missing analysts' consensus estimates of $0.56 by ($0.07). The firm had revenue of $4.45 billion during the quarter, compared to the consensus estimate of $4.37 billion. MGM Resorts International had a net margin of 1.03% and a return on equity of 24.43%. MGM Resorts International's quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.69 EPS. Research analysts forecast that MGM Resorts International will post 1.99 earnings per share for the current fiscal year.

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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