MGM Resorts International Sees Unusually High Options Volume (NYSE:MGM)

Key Points

• MGM Resorts saw unusually high options activity, with traders purchasing 13,190 call options—about 143% above the average volume.
• Institutional investors largely increased their positions, and hedge funds and other institutions now own 68.11% of MGM’s shares.
• MGM reported quarterly EPS of $0.59, exceeding estimates, while analysts maintain a “Moderate Buy” consensus and an average price target of $53.25.

MGM Resorts International (NYSE:MGM - Get Free Report) was the recipient of unusually large options trading activity on Monday. Traders acquired 13,190 call options on the company. This is an increase of approximately 143% compared to the average volume of 5,420 call options.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Geode Capital Management LLC grew its stake in shares of MGM Resorts International by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 5,224,452 shares of the company's stock worth $190,295,000 after acquiring an additional 49,613 shares during the period. Montanova Capital LLC lifted its holdings in MGM Resorts International by 7.7% during the second quarter. Montanova Capital LLC now owns 2,325,360 shares of the company's stock valued at $111,175,000 after purchasing an additional 166,560 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in MGM Resorts International by 1.6% during the first quarter. Dimensional Fund Advisors LP now owns 2,379,727 shares of the company's stock valued at $88,050,000 after purchasing an additional 36,649 shares during the last quarter. Norges Bank bought a new position in MGM Resorts International during the fourth quarter worth about $82,348,000. Finally, Bank of New York Mellon Corp boosted its position in MGM Resorts International by 3.0% during the second quarter. Bank of New York Mellon Corp now owns 1,598,531 shares of the company's stock worth $76,426,000 after purchasing an additional 46,268 shares during the period. 68.11% of the stock is currently owned by hedge funds and other institutional investors.

MGM Resorts International Stock Up 1.2%

MGM Resorts International stock traded up $0.45 during mid-day trading on Monday, reaching $38.26. The stock had a trading volume of 641,185 shares, compared to its average volume of 4,143,828. The firm has a market capitalization of $9.63 billion, a PE ratio of 23.18, a price-to-earnings-growth ratio of 1.93 and a beta of 1.28. MGM Resorts International has a fifty-two week low of $29.18 and a fifty-two week high of $51.59. The stock's 50-day simple moving average is $43.39 and its 200-day simple moving average is $41.77. The company has a debt-to-equity ratio of 1.80, a quick ratio of 1.30 and a current ratio of 1.34.

MGM Resorts International (NYSE:MGM - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.56 by $0.03. MGM Resorts International had a return on equity of 23.30% and a net margin of 2.40%.The business had revenue of $4.45 billion during the quarter, compared to the consensus estimate of $4.42 billion. During the same quarter in the previous year, the business earned $0.79 EPS. The company's quarterly revenue was up 2.2% on a year-over-year basis. On average, sell-side analysts forecast that MGM Resorts International will post 1.96 EPS for the current fiscal year.

Analysts Set New Price Targets

Several analysts have recently weighed in on MGM shares. Citigroup boosted their price target on MGM Resorts International from $40.00 to $48.00 and gave the stock a "neutral" rating in a report on Thursday, July 2nd. HSBC upgraded shares of MGM Resorts International to a "strong-buy" rating in a research report on Thursday, July 30th. The Goldman Sachs Group reiterated a "sell" rating and set a $43.00 price target on shares of MGM Resorts International in a report on Wednesday, July 15th. Stifel Nicolaus restated a "hold" rating and issued a $49.00 price objective (up from $48.00) on shares of MGM Resorts International in a report on Monday, June 15th. Finally, Weiss Ratings raised MGM Resorts International from a "sell (d+)" rating to a "hold (c)" rating in a report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $53.25.

MGM Resorts International Company Profile

MGM Resorts International is a global hospitality and entertainment company that owns and operates destination resorts, casinos, hotels, restaurants, convention facilities and live-entertainment venues. Its properties offer casino gaming, hotel accommodations, dining, nightlife, retail, spa services, sporting events and other leisure activities.

The company operates a portfolio of resorts in Las Vegas and other U.S. markets, including properties associated with brands such as MGM Grand, Bellagio, ARIA, Mandalay Bay, Park MGM, New York-New York and MGM National Harbor.

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