MGM Resorts International (NYSE:MGM) Price Target Raised to $60.00 at Susquehanna

Key Points

• Susquehanna analysts have increased their price target for MGM Resorts International from $50.00 to $60.00, suggesting a potential upside of 55.60% from its current stock price.
• MGM Resorts has reported earnings that beat analyst estimates, with a net margin of 3.95% and a return on equity of 20.64%, although revenue decreased by 2.4% compared to the same quarter last year.
• The company has authorized a $2.00 billion stock repurchase plan, indicating management's belief that the stock is undervalued.

MGM Resorts International (NYSE:MGM - Free Report) had its price target lifted by Susquehanna from $50.00 to $60.00 in a report published on Tuesday,Benzinga reports. Susquehanna currently has a positive rating on the stock.

Other equities research analysts also recently issued reports about the company. Seaport Res Ptn downgraded MGM Resorts International from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 21st. Stifel Nicolaus increased their target price on shares of MGM Resorts International from $44.00 to $48.00 and gave the stock a "buy" rating in a research note on Friday, July 11th. Citigroup raised shares of MGM Resorts International from a "hold" rating to a "strong-buy" rating and increased their target price for the stock from $55.00 to $57.00 in a research note on Wednesday, July 9th. The Goldman Sachs Group started coverage on shares of MGM Resorts International in a research note on Monday, July 7th. They set a "sell" rating and a $34.00 target price on the stock. Finally, Wall Street Zen raised shares of MGM Resorts International from a "sell" rating to a "hold" rating in a research note on Thursday, May 22nd. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $48.56.

MGM Resorts International Stock Performance

MGM traded up $0.54 during midday trading on Tuesday, hitting $37.95. 10,264,801 shares of the company were exchanged, compared to its average volume of 3,973,411. The company's 50 day simple moving average is $34.81 and its 200 day simple moving average is $33.32. The firm has a market capitalization of $10.33 billion, a price-to-earnings ratio of 16.94, a price-to-earnings-growth ratio of 2.42 and a beta of 1.76. The company has a current ratio of 1.31, a quick ratio of 1.26 and a debt-to-equity ratio of 1.79. MGM Resorts International has a 1-year low of $25.30 and a 1-year high of $43.99.

MGM Resorts International (NYSE:MGM - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $0.79 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.24. MGM Resorts International had a return on equity of 20.64% and a net margin of 3.95%. MGM Resorts International's revenue was up 1.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.86 EPS. As a group, sell-side analysts predict that MGM Resorts International will post 2.21 earnings per share for the current year.

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

Insider Activity at MGM Resorts International

In other MGM Resorts International news, Director Daniel J. Taylor sold 5,261 shares of the firm's stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $34.93, for a total value of $183,766.73. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Keith A. Meister sold 60,000 shares of the firm's 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 completion of the transaction, the director directly owned 5,627,478 shares of the company's stock, valued at $180,585,769.02. This represents a 1.05% 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 worth $3,486,367. Insiders own 3.06% of the company's stock.

Institutional Investors Weigh In On MGM Resorts International

Several institutional investors have recently modified their holdings of the company. Mascagni Wealth Management Inc. purchased a new stake in MGM Resorts International in the fourth quarter valued at $28,000. Golden State Wealth Management LLC increased its stake in MGM Resorts International by 83.5% in the first quarter. Golden State Wealth Management LLC now owns 1,000 shares of the company's stock valued at $30,000 after purchasing an additional 455 shares during the period. True Wealth Design LLC acquired a new position in MGM Resorts International in the fourth quarter valued at $33,000. CX Institutional purchased a new stake in shares of MGM Resorts International in the first quarter valued at about $36,000. Finally, Bayforest Capital Ltd purchased a new stake in shares of MGM Resorts International in the first quarter valued at about $43,000. 68.11% of the stock is owned by hedge funds and other institutional investors.

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.