Melco Resorts & Entertainment (NASDAQ:MLCO) Share Price Breaks Above 50-Day Moving Average - Should You Sell?

Key Points

• MLCO shares rose above their 50-day moving average, trading at $4.71 versus the $4.50 average, though they remained below the 200-day average of $5.37.
• Quarterly EPS of $0.02 beat expectations of a $0.03 loss, but revenue of $1.17 billion missed forecasts and fell 10.4% year over year; EPS was also down from $0.21 a year earlier.
• Analyst sentiment is mixed, with MarketBeat reporting an average Hold rating and a $6.83 average price target.

Melco Resorts & Entertainment Limited (NASDAQ:MLCO - Get Free Report)'s share price crossed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $4.50 and traded as high as $4.74. Melco Resorts & Entertainment shares last traded at $4.71, with a volume of 3,370,655 shares trading hands.

Trending Headlines about Melco Resorts & Entertainment

Here are the key news stories impacting Melco Resorts & Entertainment this week:

• Positive Sentiment: Melco earned $0.02 per share, beating analysts’ estimate of a $0.03 loss. The earnings surprise was a positive compared with expectations, although profit was below the $0.21 per share reported a year earlier. Zacks Q3 earnings report
• Negative Sentiment: Revenue was $1.17 billion, below the $1.21 billion analyst estimate and down 10.4% year over year. The revenue shortfall and steep decline in earnings from a year ago temper the positive EPS surprise. MarketScreener earnings results

Wall Street Analyst Weigh In

A number of analysts have weighed in on MLCO shares. Texas Capital lowered Melco Resorts & Entertainment from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 16th. JPMorgan Chase & Co. lowered their price objective on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a "neutral" rating for the company in a research report on Thursday, July 16th. CLSA raised shares of Melco Resorts & Entertainment from a "hold" rating to an "outperform" rating and reduced their target price for the stock from $6.10 to $6.00 in a research report on Friday, July 10th. Citigroup began coverage on shares of Melco Resorts & Entertainment in a research note on Monday, October 12th. They set a "buy" rating and a $9.40 price target for the company. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Melco Resorts & Entertainment in a report on Tuesday, August 18th. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $6.83.

Melco Resorts & Entertainment Stock Performance

The firm's 50 day moving average is $4.50 and its 200 day moving average is $5.37. The stock has a market cap of $1.79 billion, a P/E ratio of 7.85, a price-to-earnings-growth ratio of 3.24 and a beta of 0.49.

Melco Resorts & Entertainment (NASDAQ:MLCO - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.02 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.03) by $0.05. The business had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.21 billion. Melco Resorts & Entertainment had a net margin of 4.50% and a negative return on equity of 23.81%. The business's revenue for the quarter was down 10.4% on a year-over-year basis. During the same period in the previous year, the company earned $0.21 earnings per share. As a group, analysts expect that Melco Resorts & Entertainment Limited will post 0.41 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC increased its holdings in shares of Melco Resorts & Entertainment by 24.0% during the second quarter. Integrated Wealth Concepts LLC now owns 15,500 shares of the company's stock valued at $82,000 after acquiring an additional 3,000 shares in the last quarter. GAMMA Investing LLC raised its position in shares of Melco Resorts & Entertainment by 71.5% in the 2nd quarter. GAMMA Investing LLC now owns 7,570 shares of the company's stock valued at $40,000 after purchasing an additional 3,155 shares during the last quarter. Signaturefd LLC boosted its stake in Melco Resorts & Entertainment by 30.4% in the 3rd quarter. Signaturefd LLC now owns 15,108 shares of the company's stock worth $68,000 after purchasing an additional 3,526 shares in the last quarter. Parallel Advisors LLC boosted its stake 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 worth $29,000 after purchasing an additional 4,702 shares in the last quarter. Finally, Amundi grew its position in Melco Resorts & Entertainment by 49.3% during the 1st quarter. Amundi now owns 15,646 shares of the company's stock worth $89,000 after purchasing an additional 5,166 shares during the last quarter. 39.62% of the stock is owned by institutional investors and hedge funds.

Melco Resorts & Entertainment Company Profile

Melco Resorts & Entertainment Limited is a developer, owner and operator of integrated resort facilities focused on gaming, hospitality, entertainment, dining, retail and convention services. The company's properties combine casinos with luxury hotels, restaurants, shopping areas, theaters and other leisure attractions.

Melco operates several major resorts in Macau, including City of Dreams, Altira Macau and Studio City. Its Macau operations also include the Mocha Clubs electronic gaming-machine business.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.