Melco Resorts & Entertainment (NASDAQ:MLCO) Reaches New 52-Week Low - Here's Why

Key Points

• Melco Resorts & Entertainment shares fell to a new 52-week low of $4.05, below the previous close of $4.15, with the stock trading under both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans neutral: the stock carries a consensus “Hold” rating and an average price target of $6.83, ranging from $5.50 to $9.40.
• Melco reported quarterly EPS of $0.06, in line with estimates, while revenue of $1.25 billion declined 5.7% year over year and fell slightly short of expectations.

Shares of Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report) hit a new 52-week low during trading on Monday. The company traded as low as $4.05 and last traded at $4.0550, with a volume of 409,699 shares. The stock had previously closed at $4.15.

Analyst Ratings Changes

MLCO has been the subject of a number of analyst reports. Capital One Financial set a $5.50 price objective on shares of Melco Resorts & Entertainment in a research report on Friday. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Melco Resorts & Entertainment in a research report on Tuesday, August 18th. Wall Street Zen cut Melco Resorts & Entertainment from a "buy" rating to a "hold" rating in a research note on Sunday, June 28th. Susquehanna set a $7.00 price target on Melco Resorts & Entertainment in a research note on Friday, August 14th. Finally, Citigroup initiated coverage on Melco Resorts & Entertainment in a report on Monday, October 12th. They issued a "buy" rating and a $9.40 price target for the company. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $6.83.

Melco Resorts & Entertainment Stock Performance

The company has a market capitalization of $1.55 billion, a PE ratio of 6.79, a PEG ratio of 3.20 and a beta of 0.49. The company has a 50 day moving average price of $4.88 and a 200 day moving average price of $5.31.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported $0.06 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.06. The firm had revenue of $1.25 billion for the quarter, compared to analysts' expectations of $1.26 billion. Melco Resorts & Entertainment had a net margin of 4.50% and a negative return on equity of 23.81%. The firm's quarterly revenue was down 5.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.04 earnings per share. On average, equities analysts forecast that Melco Resorts & Entertainment Limited will post 0.41 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Melco Resorts & Entertainment

A number of hedge funds have recently bought and sold shares of MLCO. Coronation Fund Managers Ltd. grew its position in shares of Melco Resorts & Entertainment by 35.2% in the 1st quarter. Coronation Fund Managers Ltd. now owns 11,269,346 shares of the company's stock worth $64,010,000 after acquiring an additional 2,934,127 shares in the last quarter. Renaissance Technologies LLC raised its position in shares of Melco Resorts & Entertainment by 7.9% during the 1st quarter. Renaissance Technologies LLC now owns 4,461,600 shares of the company's stock worth $25,342,000 after purchasing an additional 325,900 shares during the period. Bank of America Corp DE boosted its holdings in shares of Melco Resorts & Entertainment by 177.7% during the first quarter. Bank of America Corp DE now owns 890,787 shares of the company's stock valued at $5,060,000 after acquiring an additional 570,060 shares during the period. Bleakley Financial Group LLC grew its position in Melco Resorts & Entertainment by 29.8% in the 1st quarter. Bleakley Financial Group LLC now owns 461,487 shares of the company's stock worth $2,621,000 after purchasing an additional 105,887 shares during the last quarter. Finally, SG Americas Securities LLC raised its holdings in shares of Melco Resorts & Entertainment by 190.9% during the first quarter. SG Americas Securities LLC now owns 461,100 shares of the company's stock valued at $2,619,000 after buying an additional 302,609 shares during the last quarter. 39.62% of the stock is currently owned by institutional investors and hedge funds.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited NASDAQ: MLCO is a developer, owner and operator of integrated resort properties that combine casino gaming with hotels, dining, retail, entertainment and convention facilities. The company serves leisure and business travelers through destination resorts in Asia and Europe.

In Macau, Melco operates City of Dreams, Studio City and Altira Macau, as well as the Mocha Clubs electronic gaming business. Its properties offer a range of gaming options, hotel accommodations, restaurants, shopping venues, live entertainment and other non-gaming amenities.

Melco also operates City of Dreams Mediterranean in Cyprus and related satellite casinos under the Cyprus Casinos brand.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.