Meridian (NASDAQ:MRDN) Shares Up 2% - Here's Why

Key Points

• Meridian shares rose 2% to $10.35 in Friday trading, with volume more than doubling the stock’s average daily level.
• Weiss Ratings downgraded Meridian from “sell (d-)” to “sell (e+),” while the broader analyst consensus remains Sell with a $21.60 price target.
• The company beat quarterly earnings expectations, reporting $0.17 per share versus a $0.07 estimate, but continues to post significant losses, including a negative 41.41% net margin and negative 117.87% return on equity.

Meridian Holdings Inc. (NASDAQ:MRDN - Get Free Report) rose 2% during mid-day trading on Friday. The stock traded as high as $10.76 and last traded at $10.35. Approximately 78,611 shares changed hands during trading, an increase of 111% from the average daily volume of 37,218 shares. The stock had previously closed at $10.15.

Analyst Ratings Changes

Separately, Weiss Ratings downgraded shares of Meridian from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, September 28th. One research analyst has rated the stock with a Sell rating. According to data from MarketBeat.com, the company presently has an average rating of "Sell" and a consensus price target of $21.60.

Meridian Stock Performance

The business has a 50 day simple moving average of $12.79 and a 200-day simple moving average of $12.01. The firm has a market capitalization of $131.24 million, a price-to-earnings ratio of -1.54 and a beta of 0.70.

Meridian (NASDAQ:MRDN - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.10. Meridian had a negative net margin of 41.41% and a negative return on equity of 117.87%. The firm had revenue of $50.19 million for the quarter. Equities analysts predict that Meridian Holdings Inc. will post 0.66 earnings per share for the current fiscal year.

Institutional Trading of Meridian

Several hedge funds have recently made changes to their positions in the company. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Meridian during the 2nd quarter valued at approximately $2,593,000. Bank of New York Mellon Corp purchased a new position in Meridian in the second quarter worth approximately $855,000. Great Lakes Advisors LLC purchased a new position in Meridian in the second quarter worth approximately $433,000. Hsbc Holdings PLC acquired a new stake in Meridian during the second quarter worth $515,000. Finally, Man Group plc acquired a new stake in Meridian during the second quarter worth $466,000. Hedge funds and other institutional investors own 2.74% of the company's stock.

About Meridian

Meridian Holdings Inc is engaged in the online gaming and betting business, providing sports betting, online casino, and gaming operations across multiple jurisdictions in Europe, Africa, and Central and South America. The company has three reportable segments: MeridianBet Group, GMAG, and RKings & CFAC. The MeridianBet Group segment includes retail and online sports betting, casinos, and related gaming operations. The GMAG segment focuses on the resale of third-party gaming content, mainly serving customers in the Asia-Pacific region.

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