MGM Resorts International (NYSE:MGM) Shares Up 5.5% - Should You Buy?

Shares of MGM Resorts International (NYSE:MGM - Get Free Report) shot up 5.5% during mid-day trading on Tuesday . The company traded as high as $36.11 and last traded at $36.30. 1,398,051 shares were traded during trading, a decline of 71% from the average session volume of 4,903,186 shares. The stock had previously closed at $34.39.

Analyst Ratings Changes

Several research firms have issued reports on MGM. Macquarie dropped their target price on MGM Resorts International from $50.00 to $48.00 and set an "outperform" rating on the stock in a research report on Friday, May 2nd. Susquehanna increased their price objective on MGM Resorts International from $45.00 to $50.00 and gave the stock a "positive" rating in a report on Thursday, May 1st. Wall Street Zen upgraded MGM Resorts International from a "sell" rating to a "hold" rating in a research note on Thursday, May 22nd. Citizens Jmp lowered MGM Resorts International from an "outperform" rating to a "market perform" rating in a report on Thursday, June 26th. Finally, Truist Financial decreased their price target on MGM Resorts International from $50.00 to $45.00 and set a "buy" rating on the stock in a research report on Wednesday, April 23rd. Nine equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $48.06.

MGM Resorts International Trading Down 0.6%

The stock's 50 day simple moving average is $33.00 and its 200 day simple moving average is $32.85. The firm has a market cap of $10.19 billion, a PE ratio of 16.72, a PEG ratio of 2.59 and a beta of 1.76. The company has a debt-to-equity ratio of 1.79, a quick ratio of 1.26 and a current ratio of 1.31.

MGM Resorts International (NYSE:MGM - Get Free Report) last announced its earnings results on Wednesday, April 30th. The company reported $0.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.19. MGM Resorts International had a net margin of 3.95% and a return on equity of 20.64%. The company had revenue of $4.28 billion during the quarter, compared to analyst estimates of $4.29 billion. During the same period in the previous year, the business earned $0.74 earnings per share. The firm's quarterly revenue was down 2.4% compared to the same quarter last year. On average, sell-side analysts forecast that MGM Resorts International will post 2.21 earnings per share for the current fiscal year.

MGM Resorts International declared that its Board of Directors has approved a stock repurchase plan on Wednesday, April 30th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 22.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its shares are undervalued.

Insider Activity at MGM Resorts International

In other MGM Resorts International news, Director Keith A. Meister sold 60,000 shares of MGM Resorts International stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $32.09, for a total transaction of $1,925,400.00. Following the transaction, the director directly owned 5,627,478 shares of the company's stock, valued at approximately $180,585,769.02. This trade represents a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Corey Ian Sanders sold 40,000 shares of the business's stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $34.43, for a total transaction of $1,377,200.00. Following the completion of the sale, the chief operating officer owned 281,530 shares of the company's stock, valued at approximately $9,693,077.90. The trade was a 12.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 105,261 shares of company stock valued at $3,486,367. Corporate insiders own 3.06% of the company's stock.

Hedge Funds Weigh In On MGM Resorts International

Several institutional investors and hedge funds have recently made changes to their positions in the business. Assetmark Inc. lifted its stake in MGM Resorts International by 104.1% in the fourth quarter. Assetmark Inc. now owns 806 shares of the company's stock worth $28,000 after purchasing an additional 411 shares during the last quarter. Mascagni Wealth Management Inc. purchased a new position in shares of MGM Resorts International in the fourth quarter worth about $28,000. Golden State Wealth Management LLC lifted its stake in shares of MGM Resorts International by 83.5% in the 1st quarter. Golden State Wealth Management LLC now owns 1,000 shares of the company's stock valued at $30,000 after acquiring an additional 455 shares during the last quarter. True Wealth Design LLC purchased a new stake in MGM Resorts International during the 4th quarter valued at about $33,000. Finally, CX Institutional purchased a new stake in MGM Resorts International during the 1st quarter valued at about $36,000. Institutional investors 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.