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

Key Points

• Melco Resorts & Entertainment shares fell to a new 52-week low of $4.54, trading below both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: the stock has an average “Moderate Buy” rating and a $7.27 price target, but several firms recently downgraded the shares or lowered their targets.
• The company met quarterly earnings expectations at $0.06 per share, while revenue declined 5.7% year over year to $1.25 billion; institutional investors own approximately 39.6% of the stock.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $4.54 and last traded at $4.5650, with a volume of 329956 shares traded. The stock had previously closed at $4.72.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on MLCO. Weiss Ratings reissued a "sell (d)" rating on shares of Melco Resorts & Entertainment in a report on Tuesday, August 18th. Wall Street Zen cut Melco Resorts & Entertainment from a "buy" rating to a "hold" rating in a research report on Sunday, June 28th. JPMorgan Chase & Co. lowered their price target on Melco Resorts & Entertainment from $6.00 to $5.70 and set a "neutral" rating on the stock in a report on Thursday, July 16th. Morgan Stanley lowered shares of Melco Resorts & Entertainment from an "overweight" rating to a "negative" rating in a research report on Monday, June 22nd. Finally, Citigroup reduced 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 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 issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $7.27.

Melco Resorts & Entertainment Trading Down 0.7%

The firm has a 50-day moving average of $5.30 and a two-hundred day moving average of $5.46. The firm has a market cap of $1.78 billion, a price-to-earnings ratio of 7.83, a PEG ratio of 3.68 and a beta of 0.58.

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

Institutional Trading of Melco Resorts & Entertainment

Several institutional investors have recently modified their holdings of MLCO. Coronation Fund Managers Ltd. raised its stake in shares of 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 holdings 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 during the period. BNP Paribas Financial Markets increased its holdings 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 during the period. Clough Capital Partners L P raised its stake in shares of Melco Resorts & Entertainment by 17.6% in the 4th quarter. Clough Capital Partners L P now owns 1,120,920 shares of the company's stock valued at $8,485,000 after buying an additional 167,890 shares in the last quarter. Finally, Bank of America Corp DE raised its stake in shares of Melco Resorts & Entertainment by 177.7% in the 1st quarter. Bank of America Corp DE now owns 890,787 shares of the company's stock valued at $5,060,000 after buying an additional 570,060 shares in the last quarter. 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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