MGM Resorts International (NYSE:MGM) Hits New 52-Week Low - Time to Sell?

Key Points

• MGM Resorts shares fell to a new 52-week low of $28.09, well below their 50-day and 200-day moving averages of $37.75 and $41.10, respectively.
• Analyst sentiment is mixed but leans neutral: the stock has a consensus “Hold” rating and an average price target of $48.47, though several firms recently lowered or set targets near $29–$46.
• MGM modestly exceeded quarterly earnings and revenue expectations, reporting $0.59 EPS and $4.45 billion in revenue, while institutional investors collectively own 68.11% of the company.

Shares of MGM Resorts International (NYSE:MGM - Get Free Report) reached a new 52-week low during mid-day trading on Monday. The company traded as low as $28.09 and last traded at $28.2620, with a volume of 182,312 shares changing hands. The stock had previously closed at $28.60.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on MGM. Bank of America assumed coverage on MGM Resorts International in a research note on Thursday, September 24th. They issued a "neutral" rating and a $40.00 price target on the stock. Weiss Ratings upgraded shares of MGM Resorts International from a "sell (d+)" rating to a "hold (c)" rating in a research report on Thursday, July 30th. UBS Group reduced their price target on MGM Resorts International from $50.00 to $46.00 and set a "neutral" rating for the company in a report on Friday, September 11th. Wells Fargo & Company set a $29.00 target price on MGM Resorts International in a research report on Monday. Finally, The Goldman Sachs Group set a $30.00 price objective on shares of MGM Resorts International in a research note on Tuesday, October 13th. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $48.47.

MGM Resorts International Price Performance

The stock has a market cap of $7.10 billion, a PE ratio of 17.11, a P/E/G ratio of 1.47 and a beta of 1.35. The company has a current ratio of 1.34, a quick ratio of 1.30 and a debt-to-equity ratio of 1.80. The company's 50 day moving average is $37.75 and its 200-day moving average is $41.10.

MGM Resorts International (NYSE:MGM - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.56 by $0.03. The business had revenue of $4.45 billion for the quarter, compared to analyst estimates of $4.42 billion. MGM Resorts International had a net margin of 2.40% and a return on equity of 23.30%. The company's revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.79 EPS. As a group, sell-side analysts predict that MGM Resorts International will post 1.95 earnings per share for the current year.

Institutional Trading of MGM Resorts International

Several hedge funds and other institutional investors have recently modified their holdings of the business. IFP Advisors Inc raised its holdings in MGM Resorts International by 28.9% in the 3rd quarter. IFP Advisors Inc now owns 4,024 shares of the company's stock worth $125,000 after acquiring an additional 901 shares during the period. Vontobel Holding Ltd. raised its position in MGM Resorts International by 7.6% in the 3rd quarter. Vontobel Holding Ltd. now owns 19,338 shares of the company's stock valued at $600,000 after purchasing an additional 1,359 shares during the last quarter. Chemistry Wealth Management LLC increased its holdings in shares of MGM Resorts International by 1.8% in the third quarter. Chemistry Wealth Management LLC now owns 34,781 shares of the company's stock valued at $1,080,000 after purchasing an additional 600 shares in the last quarter. V Square Quantitative Management LLC raised its position in shares of MGM Resorts International by 39.6% during the third quarter. V Square Quantitative Management LLC now owns 8,325 shares of the company's stock worth $258,000 after acquiring an additional 2,361 shares during the last quarter. Finally, Fortitude Family Office LLC lifted its stake in shares of MGM Resorts International by 7,995.9% during the third quarter. Fortitude Family Office LLC now owns 3,967 shares of the company's stock valued at $123,000 after acquiring an additional 3,918 shares during the period. Institutional investors and hedge funds own 68.11% of the company's stock.

MGM Resorts International Company Profile

MGM Resorts International is a global hospitality and entertainment company that develops, owns, and operates destination resorts featuring casinos, hotels, restaurants, entertainment venues, convention facilities, retail spaces, and nightlife offerings. Its portfolio includes well-known properties such as MGM Grand, Bellagio, ARIA, Mandalay Bay, and The Cosmopolitan of Las Vegas.

The company serves customers through properties in Las Vegas and other U.S. markets, including regional destinations in Michigan, Maryland, Massachusetts, Mississippi, New Jersey, New York, and Ohio.

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