Melco Resorts & Entertainment (NASDAQ:MLCO) Sets New 1-Year Low - What's Next?

Key Points

• Melco Resorts & Entertainment fell to a new 52-week low of $4.50, below its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: the stock has an overall “Moderate Buy” rating and a consensus price target of $7.27, though several firms recently downgraded their ratings or lowered targets.
• The company met quarterly EPS expectations at $0.06, but revenue declined 5.7% year over year to $1.25 billion; institutional investors collectively own 39.62% of the shares.

Shares of Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report) reached a new 52-week low on Wednesday. The stock traded as low as $4.50 and last traded at $4.5450, with a volume of 94374 shares traded. The stock had previously closed at $4.56.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Wall Street Zen cut shares of Melco Resorts & Entertainment from a "buy" rating to a "hold" rating in a research report on Sunday, June 28th. Morgan Stanley cut shares of Melco Resorts & Entertainment from an "overweight" rating to a "negative" rating in a research note on Monday, June 22nd. Citigroup cut their price objective on shares of Melco Resorts & Entertainment from $10.50 to $9.40 and set a "buy" rating for the company in a report on Friday, July 10th. CLSA upgraded shares of Melco Resorts & Entertainment from a "hold" rating to an "outperform" rating and decreased their target price for the stock from $6.10 to $6.00 in a research report on Friday, July 10th. Finally, JPMorgan Chase & Co. lowered 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. One 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 assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $7.27.

Melco Resorts & Entertainment Trading Up 0.5%

The firm has a market capitalization of $1.74 billion, a price-to-earnings ratio of 7.64, a PEG ratio of 3.60 and a beta of 0.58. The stock's 50-day moving average is $5.24 and its 200-day moving average is $5.43.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) last posted 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 net margin of 4.50% and a negative return on equity of 23.81%. The firm had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the previous year, the firm posted $0.04 EPS. The company's revenue for the quarter was down 5.7% compared to the same quarter last year. On average, equities research analysts anticipate that Melco Resorts & Entertainment Limited will post 0.41 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of MLCO. Coronation Fund Managers Ltd. increased its stake in Melco Resorts & Entertainment by 35.2% in the first quarter. Coronation Fund Managers Ltd. now owns 11,269,346 shares of the company's stock valued at $64,010,000 after purchasing an additional 2,934,127 shares in the last quarter. Renaissance Technologies LLC increased its position in Melco Resorts & Entertainment by 7.9% in the 1st quarter. Renaissance Technologies LLC now owns 4,461,600 shares of the company's stock valued at $25,342,000 after buying an additional 325,900 shares in the last quarter. BNP Paribas Financial Markets increased its position in Melco Resorts & Entertainment by 177.1% in the 4th quarter. BNP Paribas Financial Markets now owns 1,399,529 shares of the company's stock valued at $10,594,000 after buying an additional 894,513 shares in the last quarter. Clough Capital Partners L P raised its stake in Melco Resorts & Entertainment by 17.6% during the 4th quarter. Clough Capital Partners L P now owns 1,120,920 shares of the company's stock worth $8,485,000 after buying an additional 167,890 shares during the period. Finally, Bank of America Corp DE raised its stake in Melco Resorts & Entertainment by 177.7% during the 1st quarter. Bank of America Corp DE now owns 890,787 shares of the company's stock worth $5,060,000 after buying an additional 570,060 shares during the period. Institutional investors and hedge funds own 39.62% of the company's stock.

Melco Resorts & Entertainment Company Profile

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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