Stifel Nicolaus Has Lowered Expectations for MGM Resorts International (NYSE:MGM) Stock Price

Key Points

• Stifel Nicolaus cut its price target on MGM to $48 from $50 but kept a "buy" rating, implying about a 24.4% upside from the recent close.
• Analyst views are mixed: the consensus is a "Hold" with an average target of $41.88, while individual ratings range from Strong Buy to Sell, showing divergence among firms.
• MGM posted a strong quarter, reporting $1.60 EPS versus $0.64 expected and $4.61 billion in revenue versus $4.42 billion estimated, signaling an earnings beat.

MGM Resorts International (NYSE:MGM - Get Free Report) had its price objective decreased by equities researchers at Stifel Nicolaus from $50.00 to $48.00 in a note issued to investors on Tuesday,MarketScreener reports. The firm presently has a "buy" rating on the stock. Stifel Nicolaus' target price would indicate a potential upside of 24.40% from the company's previous close.

Other equities analysts also recently issued reports about the stock. Morgan Stanley reaffirmed an "underweight" rating and issued a $35.00 target price (up from $34.00) on shares of MGM Resorts International in a research note on Wednesday. JPMorgan Chase & Co. increased their price target on shares of MGM Resorts International from $39.00 to $41.00 and gave the company a "neutral" rating in a research note on Friday, February 6th. Barclays set a $37.00 price target on shares of MGM Resorts International in a research note on Friday, February 6th. Berenberg Bank reissued a "buy" rating on shares of MGM Resorts International in a research note on Wednesday, February 11th. Finally, Susquehanna decreased their price target on shares of MGM Resorts International from $46.00 to $45.00 and set a "positive" rating on the stock in a research note on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, seven have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $41.88.

MGM Resorts International Stock Performance

MGM Resorts International stock traded up $0.69 on Tuesday, reaching $38.58. 208,811 shares of the stock were exchanged, compared to its average volume of 4,904,806. The stock has a market cap of $9.87 billion, a PE ratio of 51.35 and a beta of 1.35. The company has a current ratio of 1.23, a quick ratio of 1.20 and a debt-to-equity ratio of 1.91. MGM Resorts International has a twelve month low of $25.62 and a twelve month high of $40.16. The firm has a fifty day moving average price of $36.05 and a two-hundred day moving average price of $34.87.

MGM Resorts International (NYSE:MGM - Get Free Report) last released its earnings results on Wednesday, February 4th. The company reported $1.60 earnings per share for the quarter, topping analysts' consensus estimates of $0.64 by $0.96. MGM Resorts International had a net margin of 1.17% and a return on equity of 26.04%. The firm had revenue of $4.61 billion during the quarter, compared to analyst estimates of $4.42 billion. During the same quarter in the previous year, the business earned $0.45 EPS. Sell-side analysts anticipate that MGM Resorts International will post 2.21 EPS for the current year.

Insider Buying and Selling

In other MGM Resorts International news, Director Keith A. Meister sold 37,500 shares of MGM Resorts International stock in a transaction on Monday, March 9th. The shares were sold at an average price of $34.27, for a total value of $1,285,125.00. Following the sale, the director directly owned 5,347,978 shares in the company, valued at approximately $183,275,206.06. The trade was a 0.70% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Iac Inc. purchased 450,000 shares of the stock in a transaction on Tuesday, March 24th. The stock was acquired at an average price of $37.13 per share, for a total transaction of $16,708,500.00. Following the completion of the purchase, the insider directly owned 66,822,350 shares in the company, valued at approximately $2,481,113,855.50. The trade was a 0.68% increase in their position. The SEC filing for this purchase provides additional information. 3.38% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On MGM Resorts International

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MGM. Davis Selected Advisers boosted its position in shares of MGM Resorts International by 12.0% during the 4th quarter. Davis Selected Advisers now owns 26,820,202 shares of the company's stock worth $978,669,000 after acquiring an additional 2,866,750 shares in the last quarter. Vanguard Group Inc. boosted its stake in MGM Resorts International by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 23,782,004 shares of the company's stock valued at $867,805,000 after buying an additional 205,127 shares in the last quarter. AQR Capital Management LLC boosted its stake in MGM Resorts International by 202.5% in the third quarter. AQR Capital Management LLC now owns 8,446,982 shares of the company's stock valued at $292,772,000 after buying an additional 5,654,757 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of MGM Resorts International by 81.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 7,642,060 shares of the company's stock worth $264,874,000 after buying an additional 3,429,946 shares during the last quarter. Finally, State Street Corp grew its stake in shares of MGM Resorts International by 0.4% during the fourth quarter. State Street Corp now owns 7,517,622 shares of the company's stock worth $274,318,000 after buying an additional 30,962 shares during the last quarter. 68.11% of the stock is currently owned by institutional investors and hedge funds.

MGM Resorts International Company Profile

MGM Resorts International is a leading global hospitality and entertainment company that develops, owns and operates destination resorts, hotels and casinos. Its properties feature integrated gaming floors alongside luxury accommodations, fine dining and retail outlets, live entertainment venues and convention facilities. The company also offers loyalty programs, sports betting and digital gaming experiences to enhance guest engagement and drive repeat visitation.

The company traces its heritage to the opening of the original MGM Grand Hotel & Casino on the Las Vegas Strip in 1973.

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