MGM Resorts International (NYSE:MGM) Stock Price Expected to Rise, Deutsche Bank Aktiengesellschaft Analyst Says

Key Points

• Deutsche Bank raised its price target on MGM Resorts to $55 from $48 and kept a buy rating, implying about 11.5% upside from the prior close.
• MGM shares jumped 12.9% to $49.31 amid unusually heavy trading volume, reflecting strong investor interest in the stock.
• Sentiment around MGM has been lifted by a non-binding $48.30-per-share takeover offer from People Inc., while MGM’s board said it will review the proposal and analysts see the bid as potentially too low.

MGM Resorts International (NYSE:MGM - Get Free Report) had its price objective raised by equities research analysts at Deutsche Bank Aktiengesellschaft from $48.00 to $55.00 in a research note issued on Tuesday,MarketScreener reports. The firm presently has a "buy" rating on the stock. Deutsche Bank Aktiengesellschaft's price objective indicates a potential upside of 11.54% from the stock's previous close.

Several other analysts also recently commented on the stock. Truist Financial upgraded shares of MGM Resorts International from a "hold" rating to a "buy" rating and raised their target price for the stock from $42.00 to $55.00 in a report on Wednesday, May 27th. Citigroup lowered their price objective on shares of MGM Resorts International from $41.00 to $40.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Berenberg Bank reaffirmed a "buy" rating on shares of MGM Resorts International in a research report on Wednesday, February 11th. Susquehanna upped their target price on shares of MGM Resorts International from $45.00 to $50.00 and gave the stock a "positive" rating in a research note on Monday. Finally, KeyCorp upgraded MGM Resorts International from a "sector weight" rating to an "overweight" rating and set a $117.00 target price for the company in a report on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, six have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $49.12.

MGM Resorts International Trading Up 12.9%

Shares of MGM stock traded up $5.64 on Tuesday, reaching $49.31. The company had a trading volume of 27,676,440 shares, compared to its average volume of 4,821,489. The stock has a market cap of $12.62 billion, a PE ratio of 70.18 and a beta of 1.28. The company has a 50-day moving average of $38.28 and a 200-day moving average of $36.39. The company has a current ratio of 1.33, a quick ratio of 1.30 and a debt-to-equity ratio of 1.93. MGM Resorts International has a 12 month low of $29.18 and a 12 month high of $51.59.

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

Insider Buying and Selling at MGM Resorts International

In other MGM Resorts International news, major shareholder Iac Inc. bought 450,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 24th. The shares were acquired at an average cost of $37.13 per share, with a total value of $16,708,500.00. Following the acquisition, the insider owned 66,822,350 shares of the company's stock, valued at $2,481,113,855.50. The trade was a 0.68% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Keith A. Meister sold 37,500 shares of the stock in a transaction on 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 owned 5,347,978 shares in the company, valued at approximately $183,275,206.06. This trade represents a 0.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 3.38% of the company's stock.

Institutional Investors Weigh In On MGM Resorts International

A number of large investors have recently added to or reduced their stakes in MGM. Whittier Trust Co. grew its stake in shares of MGM Resorts International by 2.5% in the 1st quarter. Whittier Trust Co. now owns 10,778 shares of the company's stock worth $405,000 after buying an additional 262 shares in the last quarter. Global Retirement Partners LLC raised its position 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. Asset Management One Co. Ltd. lifted its holdings in shares of MGM Resorts International by 4.2% in the 4th quarter. Asset Management One Co. Ltd. now owns 7,700 shares of the company's stock valued at $286,000 after acquiring an additional 313 shares during the last quarter. Brown Brothers Harriman & Co. grew its position in MGM Resorts International by 23.1% in the fourth quarter. Brown Brothers Harriman & Co. now owns 1,893 shares of the company's stock worth $69,000 after acquiring an additional 355 shares in the last quarter. Finally, Public Employees Retirement System of Ohio grew its position in MGM Resorts International by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 64,006 shares of the company's stock worth $2,218,000 after acquiring an additional 397 shares in the last quarter. Institutional investors and hedge funds own 68.11% of the company's stock.

Key MGM Resorts International News

Here are the key news stories impacting MGM Resorts International this week:

• Positive Sentiment: People Inc. confirmed it wants to take MGM private with a $48.30-per-share cash offer, creating a direct acquisition premium and driving takeover speculation. MGM Resorts International Confirms Receipt of Acquisition Proposal from People Incorporated
• Positive Sentiment: Analysts and event-driven investors are suggesting the bid may be too low, raising the odds of a higher offer and keeping momentum in the shares strong. MGM Stock Is Already Trading Above Barry Diller's $48.30 Bid — Analyst Says Board Should Ask For Even More
• Neutral Sentiment: MGM’s board said it will carefully review the proposal, so the deal is not yet agreed and could still change materially. MGM Resorts International Confirms Receipt of Acquisition Proposal from People Incorporated
• Negative Sentiment: The offer is non-binding, so People Inc. can walk away or face financing, regulatory, or deal-approval hurdles if negotiations progress. People Inc. Offers to Buy Rest of MGM Resorts, Valuing Company at $18 Billion

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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