MGM Resorts International (NYSE:MGM) Sets New 12-Month Low Following Analyst Downgrade

Key Points

• MGM Resorts shares hit a new 52-week low of $28.80 after Barclays cut its price target from $48 to $37 while maintaining an equal-weight rating.
• Analyst sentiment is mixed, with the stock carrying a consensus “Hold” rating and an average target price of $51.66; recent target changes ranged from $41 to $55.
• Institutional investors own 68.11% of MGM’s shares, while the company’s latest quarterly results modestly beat expectations with $0.59 EPS and $4.45 billion in revenue.

MGM Resorts International (NYSE:MGM - Get Free Report)'s stock price reached a new 52-week low on Monday after Barclays lowered their price target on the stock from $48.00 to $37.00. Barclays currently has an equal weight rating on the stock. MGM Resorts International traded as low as $28.80 and last traded at $28.8440, with a volume of 231,619 shares trading hands. The stock had previously closed at $29.27.

A number of other research firms have also recently commented on MGM. Jefferies Financial Group restated a "hold" rating on shares of MGM Resorts International in a report on Thursday, July 2nd. UBS Group dropped their price objective on shares of MGM Resorts International from $50.00 to $46.00 and set a "neutral" rating on the stock in a report on Friday, September 11th. Susquehanna dropped their price objective on shares of MGM Resorts International from $46.00 to $41.00 and set a "positive" rating on the stock in a report on Thursday. JPMorgan Chase & Co. increased their price objective on shares of MGM Resorts International from $46.00 to $53.00 and gave the stock an "overweight" rating in a research report on Friday, June 12th. Finally, Mizuho cut their price objective on shares of MGM Resorts International from $60.00 to $55.00 and set an "outperform" rating on the stock in a research report on Thursday, September 24th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $51.66.

Hedge Funds Weigh In On MGM Resorts International

A number of hedge funds and other institutional investors have recently modified their holdings of MGM. State Street Corp lifted its holdings in MGM Resorts International by 0.8% during the second quarter. State Street Corp now owns 7,047,768 shares of the company's stock valued at $336,954,000 after purchasing an additional 56,072 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in MGM Resorts International by 1.6% during the first quarter. Dimensional Fund Advisors LP now owns 2,379,727 shares of the company's stock worth $88,050,000 after purchasing an additional 36,649 shares during the period. Montanova Capital LLC boosted its position in MGM Resorts International by 7.7% during the second quarter. Montanova Capital LLC now owns 2,325,360 shares of the company's stock worth $111,175,000 after purchasing an additional 166,560 shares during the period. Bank of New York Mellon Corp increased its stake in shares of MGM Resorts International by 3.0% in the second quarter. Bank of New York Mellon Corp now owns 1,598,531 shares of the company's stock worth $76,426,000 after purchasing an additional 46,268 shares in the last quarter. Finally, Royal Bank of Canada increased its stake in shares of MGM Resorts International by 2.2% in the first quarter. Royal Bank of Canada now owns 1,110,977 shares of the company's stock worth $41,117,000 after purchasing an additional 23,951 shares in the last quarter. Hedge funds and other institutional investors own 68.11% of the company's stock.

MGM Resorts International Price Performance

The firm's 50 day moving average price is $39.31 and its two-hundred day moving average price is $41.37. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.34 and a quick ratio of 1.30. The stock has a market cap of $7.28 billion, a PE ratio of 17.53, a P/E/G ratio of 1.50 and a beta of 1.35.

MGM Resorts International (NYSE:MGM - Get Free Report) last released its quarterly earnings data 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. MGM Resorts International had a return on equity of 23.30% and a net margin of 2.40%. The company had revenue of $4.45 billion for the quarter, compared to analyst estimates of $4.42 billion. During the same period in the previous year, the company posted $0.79 EPS. The firm's revenue for the quarter was up 2.2% compared to the same quarter last year. On average, research analysts expect that MGM Resorts International will post 1.95 earnings per share for the current year.

About MGM Resorts International

MGM Resorts International is a global hospitality and entertainment company that develops, owns and operates destination resorts with casinos, hotels, restaurants, retail, entertainment venues, meeting facilities and other leisure offerings. Its properties operate under brands including MGM Grand, Bellagio, ARIA, Mandalay Bay, The Cosmopolitan of Las Vegas, Park MGM, New York-New York and MGM National Harbor.

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

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