MGM Resorts International (NYSE:MGM) Trading Down 3.2% - Time to Sell?

Key Points

• MGM Resorts International's share price has dropped 3.2%, trading at $33.62, significantly lower than its previous close of $34.75.
• The consensus rating for MGM shares is a "Moderate Buy" with an average target price of $48.61, despite some analysts issuing sell ratings.
• Recent insider trading activity includes large sales by directors, with one selling 242,000 shares at an average price of $35.42, marking a 4.30% decrease in their ownership.

MGM Resorts International (NYSE:MGM - Get Free Report)'s share price fell 3.2% during mid-day trading on Friday . The stock traded as low as $34.00 and last traded at $33.62. 804,188 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 5,190,603 shares. The stock had previously closed at $34.75.

Analyst Ratings Changes

MGM has been the subject of several research analyst reports. The Goldman Sachs Group assumed coverage on shares of MGM Resorts International in a research note on Monday, July 7th. They set a "sell" rating and a $34.00 price target for the company. Barclays boosted their price target on MGM Resorts International from $43.00 to $44.00 and gave the company an "overweight" rating in a report on Friday, July 18th. Citigroup upgraded MGM Resorts International from a "hold" rating to a "strong-buy" rating and upped their target price for the stock from $55.00 to $57.00 in a report on Wednesday, July 9th. Susquehanna upped their price objective on shares of MGM Resorts International from $50.00 to $60.00 and gave the stock a "positive" rating in a research note on Tuesday, July 29th. Finally, Mizuho lowered their price objective on shares of MGM Resorts International from $58.00 to $56.00 and set an "outperform" rating for the company in a research note on Monday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, MGM Resorts International presently has a consensus rating of "Moderate Buy" and an average target price of $48.61.

MGM Resorts International Stock Performance

The firm has a fifty day moving average price of $36.35 and a 200 day moving average price of $33.99. The company has a debt-to-equity ratio of 1.67, a quick ratio of 1.18 and a current ratio of 1.22. The stock has a market cap of $9.24 billion, a PE ratio of 18.64, a price-to-earnings-growth ratio of 1.48 and a beta of 1.67.

MGM Resorts International (NYSE:MGM - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $0.79 EPS for the quarter, beating analysts' consensus estimates of $0.58 by $0.21. The company 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 firm's revenue was up 1.8% compared to the same quarter last year. During the same period last year, the business posted $0.86 earnings per share. Research analysts forecast that MGM Resorts International will post 2.21 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Keith A. Meister sold 242,000 shares of the firm's stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $35.42, for a total value of $8,571,640.00. Following the completion of the transaction, the director directly owned 5,385,478 shares in the company, valued at $190,753,630.76. This trade represents a 4.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider John Mcmanus sold 60,000 shares of the firm's stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $36.12, for a total transaction of $2,167,200.00. Following the transaction, the insider directly owned 31,521 shares of the company's stock, valued at $1,138,538.52. This represents a 65.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 3.06% of the company's stock.

Hedge Funds Weigh In On MGM Resorts International

Several institutional investors have recently made changes to their positions in the company. XML Financial LLC increased its holdings in MGM Resorts International by 0.9% in the second quarter. XML Financial LLC now owns 30,884 shares of the company's stock valued at $1,062,000 after buying an additional 287 shares in the last quarter. Concurrent Investment Advisors LLC increased its holdings in MGM Resorts International by 4.1% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 7,975 shares of the company's stock worth $274,000 after acquiring an additional 315 shares in the last quarter. Amalgamated Bank increased its stake in MGM Resorts International by 0.8% during the 1st quarter. Amalgamated Bank now owns 43,933 shares of the company's stock worth $1,302,000 after buying an additional 329 shares in the last quarter. Quarry LP increased its stake in MGM Resorts International by 24.1% during the 1st quarter. Quarry LP now owns 1,795 shares of the company's stock worth $53,000 after buying an additional 349 shares in the last quarter. Finally, DekaBank Deutsche Girozentrale increased its stake in MGM Resorts International by 0.7% during the 2nd quarter. DekaBank Deutsche Girozentrale now owns 55,666 shares of the company's stock worth $1,917,000 after buying an additional 399 shares in the last quarter. 68.11% of the stock is owned by hedge funds and other institutional investors.

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.

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