Melco Resorts & Entertainment (NASDAQ:MLCO) Sets New 1-Year Low - Here's Why

Key Points

• Melco Resorts & Entertainment shares fell to a new 52-week low of $4.98, below its 50-day and 200-day moving averages of $5.41 and $5.54, respectively.
• Analyst sentiment remains mixed but leans positive, with a consensus “Moderate Buy” rating and an average price target of $7.27; several firms recently lowered their targets, including JPMorgan to $5.70.
• Quarterly EPS of $0.06 matched estimates, but revenue of $1.25 billion missed expectations and declined 5.7% year over year. The company reported a 4.5% net margin and negative return on equity of 23.81%.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report)'s stock price reached a new 52-week low on Thursday . The stock traded as low as $4.98 and last traded at $4.9950, with a volume of 159487 shares changing hands. The stock had previously closed at $5.06.

Analysts Set New Price Targets

Several analysts have issued reports on MLCO shares. CLSA raised shares of Melco Resorts & Entertainment from a "hold" rating to an "outperform" rating and dropped their price target for the stock from $6.10 to $6.00 in a research report on Friday, July 10th. Morgan Stanley downgraded shares of Melco Resorts & Entertainment from an "overweight" rating to a "negative" rating in a research report on Monday, June 22nd. Wall Street Zen lowered shares of Melco Resorts & Entertainment from a "buy" rating to a "hold" rating in a research note on Sunday, June 28th. JPMorgan Chase & Co. dropped their target price on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a "neutral" rating on the stock in a report on Thursday, July 16th. Finally, Citigroup cut their target price on shares of Melco Resorts & Entertainment from $10.50 to $9.40 and set a "buy" rating for the company in a research note on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $7.27.

Melco Resorts & Entertainment Stock Performance

The business has a fifty day moving average of $5.41 and a two-hundred day moving average of $5.54. The firm has a market capitalization of $1.92 billion, a price-to-earnings ratio of 8.42, a price-to-earnings-growth ratio of 3.88 and a beta of 0.58.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) last announced 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. 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 during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter last year, the firm posted $0.04 EPS. The company's quarterly revenue was down 5.7% on a year-over-year basis. As a group, sell-side analysts predict that Melco Resorts & Entertainment Limited will post 0.42 EPS for the current fiscal year.

Institutional Trading of Melco Resorts & Entertainment

Hedge funds and other institutional investors have recently modified their holdings of the stock. Parallel Advisors LLC raised its holdings in Melco Resorts & Entertainment by 1,370.8% in the 1st quarter. Parallel Advisors LLC now owns 5,045 shares of the company's stock valued at $29,000 after acquiring an additional 4,702 shares during the period. GAMMA Investing LLC boosted its holdings in shares of Melco Resorts & Entertainment by 71.5% during the second quarter. GAMMA Investing LLC now owns 7,570 shares of the company's stock worth $40,000 after acquiring an additional 3,155 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of Melco Resorts & Entertainment in the fourth quarter valued at approximately $48,000. Hilton Head Capital Partners LLC acquired a new position in shares of Melco Resorts & Entertainment in the fourth quarter valued at approximately $63,000. Finally, U S Global Investors Inc. bought a new position in shares of Melco Resorts & Entertainment during the first quarter worth approximately $68,000. Institutional investors own 39.62% of the company's stock.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited NASDAQ: MLCO is a developer, owner and operator of integrated resort destinations in Asia and Europe. The company's portfolio spans casino gaming, hotel accommodations, retail, dining and entertainment facilities. Melco's properties feature a mix of luxury hotels, award-winning restaurants, high-limit gaming salons and entertainment venues, catering to a broad range of leisure and business travelers.

In Macau, Melco owns and operates flagship properties including City of Dreams Macau, Altira Macau and Studio City.

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