MGM Resorts International (NYSE:MGM) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Investment analysts at Morgan Stanley raised their price target for MGM Resorts International from $38.00 to $41.00, indicating a potential upside of 17.09% from its previous close.
• The company recently reported a quarterly earnings per share (EPS) of $0.79, exceeding analysts' expectations of $0.58, alongside revenues of $4.40 billion.
• MGM's board approved a stock repurchase plan to buy back $2.00 billion in shares, suggesting the company's leadership believes the stock is currently undervalued.

MGM Resorts International (NYSE:MGM - Get Free Report) had its price objective boosted by investment analysts at Morgan Stanley from $38.00 to $41.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's price objective would suggest a potential upside of 17.09% from the stock's previous close.

MGM has been the topic of a number of other reports. Citizens Jmp lowered MGM Resorts International from an "outperform" rating to a "market perform" rating in a report on Thursday, June 26th. UBS Group boosted their price target on MGM Resorts International from $37.00 to $42.00 and gave the company a "neutral" rating in a research note on Tuesday, July 8th. Susquehanna upped their target price on MGM Resorts International from $50.00 to $60.00 and gave the stock a "positive" rating in a research note on Tuesday, July 29th. JPMorgan Chase & Co. assumed coverage on MGM Resorts International in a research note on Monday, June 23rd. They set a "neutral" rating and a $38.00 target price for the company. Finally, Mizuho lowered their target price on MGM Resorts International from $59.00 to $58.00 and set an "outperform" rating for the company in a research report on Thursday, July 31st. One analyst has rated the stock with a sell rating, nine have assigned a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $48.72.

MGM Resorts International Stock Up 0.1%

MGM stock traded up $0.05 during mid-day trading on Wednesday, hitting $35.02. The stock had a trading volume of 1,591,141 shares, compared to its average volume of 5,443,216. The company has a current ratio of 1.22, a quick ratio of 1.18 and a debt-to-equity ratio of 1.67. The stock has a market capitalization of $9.53 billion, a price-to-earnings ratio of 19.24, a PEG ratio of 2.09 and a beta of 1.81. The company has a fifty day moving average of $35.27 and a 200 day moving average of $33.43. MGM Resorts International has a 1-year low of $25.30 and a 1-year high of $42.53.

MGM Resorts International (NYSE:MGM - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $0.79 earnings per share for the quarter, beating analysts' consensus estimates of $0.58 by $0.21. The firm had revenue of $4.40 billion during the quarter, compared to analysts' expectations of $4.28 billion. MGM Resorts International had a return on equity of 19.39% and a net margin of 3.13%. The business's revenue was up 1.8% on a year-over-year basis. During the same period last year, the firm posted $0.86 EPS. On average, equities analysts expect that MGM Resorts International will post 2.21 EPS for the current fiscal year.

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

Insider Activity at MGM Resorts International

In other news, Director Keith A. Meister sold 60,000 shares of MGM Resorts International stock in a transaction 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 completion of the sale, the director directly owned 5,627,478 shares in the company, valued at approximately $180,585,769.02. The trade was a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Corey Ian Sanders sold 40,000 shares of the firm's stock in a transaction 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 transaction, the chief operating officer directly owned 281,530 shares of the company's stock, valued at approximately $9,693,077.90. This trade represents a 12.44% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 105,261 shares of company stock valued at $3,486,367. Insiders own 3.06% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. TD Waterhouse Canada Inc. increased its holdings in MGM Resorts International by 8.9% in the fourth quarter. TD Waterhouse Canada Inc. now owns 3,190 shares of the company's stock valued at $111,000 after buying an additional 261 shares in the last quarter. XML Financial LLC boosted its position in MGM Resorts International by 0.9% during the second quarter. XML Financial LLC now owns 30,884 shares of the company's stock worth $1,062,000 after acquiring an additional 287 shares during the last quarter. Concurrent Investment Advisors LLC boosted its position in MGM Resorts International by 4.1% during the second quarter. Concurrent Investment Advisors LLC now owns 7,975 shares of the company's stock worth $274,000 after acquiring an additional 315 shares during the last quarter. Amalgamated Bank boosted its position in MGM Resorts International by 0.8% during the first quarter. Amalgamated Bank now owns 43,933 shares of the company's stock worth $1,302,000 after acquiring an additional 329 shares during the last quarter. Finally, Quarry LP boosted its holdings in MGM Resorts International by 24.1% in the 1st quarter. Quarry LP now owns 1,795 shares of the company's stock valued at $53,000 after purchasing an additional 349 shares during the last quarter. Hedge funds and other institutional investors own 68.11% of the company's stock.

MGM Resorts International Company Profile

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.

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