Melco Resorts & Entertainment (NASDAQ:MLCO) Reaches New 52-Week Low - Should You Sell?

Key Points

• Melco Resorts & Entertainment fell to a new 52-week low of $4.64, below its 50-day and 200-day moving averages of $5.37 and $5.51, respectively.
• Analyst sentiment remains mixed but leans positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $7.27, despite recent downgrades and a sell rating from Weiss Ratings.
• The company met quarterly EPS expectations at $0.06, but revenue declined 5.7% year over year to $1.25 billion and return on equity remained negative at 23.81%; institutional investors own 39.62% of the stock.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report)'s stock price reached a new 52-week low on Wednesday . The stock traded as low as $4.64 and last traded at $4.64, with a volume of 1958326 shares. The stock had previously closed at $4.81.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on MLCO shares. CLSA raised Melco Resorts & Entertainment from a "hold" rating to an "outperform" rating and cut their price objective for the company from $6.10 to $6.00 in a report on Friday, July 10th. Citigroup dropped their price target on shares of Melco Resorts & Entertainment from $10.50 to $9.40 and set a "buy" rating on the stock in a research report on Friday, July 10th. Susquehanna set a $7.00 price target on shares of Melco Resorts & Entertainment in a research note on Friday, August 14th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Melco Resorts & Entertainment in a report on Tuesday, August 18th. Finally, Morgan Stanley cut Melco Resorts & Entertainment from an "overweight" rating to a "negative" rating in a report on Monday, June 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $7.27.

Melco Resorts & Entertainment Stock Performance

The stock has a market capitalization of $1.76 billion, a P/E ratio of 7.73, a PEG ratio of 3.65 and a beta of 0.58. The business has a fifty day simple moving average of $5.37 and a 200-day simple moving average of $5.51.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) last announced its earnings results on Thursday, August 13th. The company reported $0.06 earnings per share for the quarter, hitting analysts' consensus estimates of $0.06. Melco Resorts & Entertainment had a negative return on equity of 23.81% and a net margin of 4.50%.The business had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the company earned $0.04 EPS. The company's quarterly revenue was down 5.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Melco Resorts & Entertainment Limited will post 0.42 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Coronation Fund Managers Ltd. boosted its holdings in shares of Melco Resorts & Entertainment by 35.2% during the first quarter. Coronation Fund Managers Ltd. now owns 11,269,346 shares of the company's stock worth $64,010,000 after purchasing an additional 2,934,127 shares during the period. BNP Paribas Financial Markets boosted its position in Melco Resorts & Entertainment by 177.1% during the fourth quarter. BNP Paribas Financial Markets now owns 1,399,529 shares of the company's stock valued at $10,594,000 after purchasing an additional 894,513 shares during the last quarter. Bank of America Corp DE grew its stake in Melco Resorts & Entertainment by 177.7% in the first quarter. Bank of America Corp DE now owns 890,787 shares of the company's stock valued at $5,060,000 after purchasing an additional 570,060 shares in the last quarter. Renaissance Technologies LLC grew its stake in Melco Resorts & Entertainment by 7.9% in the first quarter. Renaissance Technologies LLC now owns 4,461,600 shares of the company's stock valued at $25,342,000 after purchasing an additional 325,900 shares in the last quarter. Finally, SG Americas Securities LLC increased its position in Melco Resorts & Entertainment by 190.9% in the 1st quarter. SG Americas Securities LLC now owns 461,100 shares of the company's stock worth $2,619,000 after purchasing an additional 302,609 shares during the last quarter. 39.62% of the stock is currently owned by hedge funds and other institutional investors.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited is a developer, owner and operator of integrated resort facilities focused on gaming, hospitality and entertainment. The company's properties combine casino operations with hotels, restaurants, retail, convention space and leisure attractions.

Melco operates in Macau, including City of Dreams Macau, Studio City Macau and Altira Macau. Its portfolio also includes City of Dreams Manila in the Philippines and City of Dreams Mediterranean in Cyprus, along with satellite casinos in Cyprus.

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