Melco Resorts & Entertainment (NASDAQ:MLCO) Sets New 12-Month Low - Time to Sell?

Key Points

• Melco Resorts & Entertainment fell 4.7% to $5.08 intraday, reaching a new 52-week low of $5.07 and trading below its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but leans positive, with a “Moderate Buy” consensus and an average price target of $7.27; recent ratings included upgrades, downgrades and target-price reductions.
• Quarterly EPS of $0.06 matched estimates, but revenue of $1.25 billion declined 5.7% year over year and missed expectations slightly. Institutional investors own approximately 39.6% of the company.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $5.07 and last traded at $5.08, with a volume of 863090 shares changing hands. The stock had previously closed at $5.32.

Analyst Ratings Changes

MLCO has been the subject of a number of recent analyst reports. 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 research report on Friday, July 10th. Morgan Stanley downgraded Melco Resorts & Entertainment from an "overweight" rating to a "negative" rating in a report on Monday, June 22nd. Citigroup decreased their price objective on shares of Melco Resorts & Entertainment from $10.50 to $9.40 and set a "buy" rating on the stock in a report on Friday, July 10th. JPMorgan Chase & Co. cut their target price on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a "neutral" rating for the company in a research note on Thursday, July 16th. Finally, 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. One investment 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 company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $7.27.

Melco Resorts & Entertainment Trading Down 4.7%

The stock's fifty day moving average is $5.44 and its two-hundred day moving average is $5.58. The company has a market capitalization of $1.93 billion, a PE ratio of 8.45, a P/E/G ratio of 3.91 and a beta of 0.59.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The company reported $0.06 EPS for the quarter, meeting 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 firm had revenue of $1.25 billion for the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter in the prior year, the firm earned $0.04 EPS. The business's revenue for the quarter was down 5.7% compared to the same quarter last year. As a group, analysts anticipate that Melco Resorts & Entertainment Limited will post 0.43 EPS for the current fiscal year.

Institutional Investors Weigh In On Melco Resorts & Entertainment

Several hedge funds have recently bought and sold shares of MLCO. Parallel Advisors LLC raised its position in shares of Melco Resorts & Entertainment by 1,370.8% in the 1st quarter. Parallel Advisors LLC now owns 5,045 shares of the company's stock worth $29,000 after purchasing an additional 4,702 shares during the last quarter. GAMMA Investing LLC raised its position in Melco Resorts & Entertainment by 71.5% in the 2nd quarter. GAMMA Investing LLC now owns 7,570 shares of the company's stock worth $40,000 after buying an additional 3,155 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in Melco Resorts & Entertainment during the fourth quarter valued at $48,000. Hilton Head Capital Partners LLC bought a new stake in shares of Melco Resorts & Entertainment during the 4th quarter valued at $63,000. Finally, U S Global Investors Inc. purchased a new stake in shares of Melco Resorts & Entertainment in the 1st quarter worth $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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