Traders Buy Large Volume of Call Options on MGM Resorts International (NYSE:MGM)

Key Points

• Unusual call option activity surged in MGM Resorts, with traders buying 9,570 call contracts on Monday, about 31% above the stock’s typical daily call volume.
• Takeover speculation boosted sentiment after reports that Barry Diller’s People Inc. proposed buying the rest of MGM for $48.30 per share in cash, valuing the company at roughly $18 billion including debt.
• MGM shares jumped sharply on the news, trading up to $50.50 amid heavy volume, while analysts and institutional investors have remained active around the stock.

MGM Resorts International (NYSE:MGM - Get Free Report) saw some unusual options trading activity on Monday. Traders purchased 9,570 call options on the company. This represents an increase of approximately 31% compared to the typical daily volume of 7,330 call options.

Insider Activity

In other news, Director Keith A. Meister sold 37,500 shares of MGM Resorts International stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $34.27, for a total transaction of $1,285,125.00. Following the sale, the director owned 5,347,978 shares in the company, valued at $183,275,206.06. This trade represents a 0.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Daniel J. Taylor sold 6,675 shares of MGM Resorts International stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $38.44, for a total transaction of $256,587.00. The SEC filing for this sale provides additional information. Insiders own 3.38% of the company's stock.

Institutional Investors Weigh In On MGM Resorts International

Several institutional investors have recently bought and sold shares of MGM. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in MGM Resorts International by 5.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,652 shares of the company's stock worth $582,000 after purchasing an additional 951 shares during the period. NewEdge Advisors LLC lifted its holdings in MGM Resorts International by 12.1% in the first quarter. NewEdge Advisors LLC now owns 3,893 shares of the company's stock worth $115,000 after purchasing an additional 421 shares during the period. Woodline Partners LP lifted its holdings in MGM Resorts International by 39.1% in the first quarter. Woodline Partners LP now owns 18,901 shares of the company's stock worth $560,000 after purchasing an additional 5,312 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in MGM Resorts International by 57.2% in the second quarter. EverSource Wealth Advisors LLC now owns 3,248 shares of the company's stock worth $112,000 after purchasing an additional 1,182 shares during the period. Finally, Jump Financial LLC lifted its holdings in MGM Resorts International by 221.9% in the second quarter. Jump Financial LLC now owns 26,782 shares of the company's stock worth $921,000 after purchasing an additional 18,463 shares during the period. Institutional investors and hedge funds own 68.11% of the company's stock.

More MGM Resorts International News

Here are the key news stories impacting MGM Resorts International this week:

• Positive Sentiment: Barry Diller’s People Inc. reportedly submitted a non-binding proposal to buy the rest of MGM Resorts it does not already own for $48.30 per share in cash, valuing MGM at about $18 billion including debt. The offer represented a meaningful premium to recent trading levels and sparked a sharp move higher in the stock. PEOPLE INCORPORATED PROPOSES TO ACQUIRE MGM RESORTS INTERNATIONAL FOR $48.30 PER SHARE IN CASH
• Positive Sentiment: Multiple reports, including CNBC and The Wall Street Journal, reinforced the takeover story, increasing speculation that MGM could be a strategic acquisition target and adding to investor enthusiasm. Barry Diller's People to put in $18 billion bid for casino giant MGM Resorts
• Positive Sentiment: Susquehanna raised its price target on MGM to $50 from $45 and kept a positive rating, signaling continued analyst support even before the takeover news fully sank in. Susquehanna adjusts price target on MGM Resorts International to $50 from $45
• Neutral Sentiment: Earlier commentary from Seeking Alpha pointed to improving Las Vegas trends, growth in MGM Digital and China, and better underlying operating momentum, which supports the longer-term bullish case but was not the main driver of today’s move. MGM: Better Vegas Trends Give The Stock Room To Run

Wall Street Analysts Forecast Growth

MGM has been the subject of a number of research analyst reports. The Goldman Sachs Group lifted their price target on shares of MGM Resorts International from $34.00 to $38.00 and gave the stock a "sell" rating in a research note on Thursday, April 30th. Barclays lifted their price target on shares of MGM Resorts International from $37.00 to $39.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 30th. KeyCorp upgraded shares of MGM Resorts International from a "sector weight" rating to an "overweight" rating and set a $117.00 target price for the company in a research note on Monday, April 27th. UBS Group lowered their target price on shares of MGM Resorts International from $40.00 to $39.00 and set a "neutral" rating for the company in a research note on Friday, April 10th. Finally, Citigroup lowered their target price on shares of MGM Resorts International from $41.00 to $40.00 and set a "neutral" rating for the company in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, six have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $48.47.

MGM Resorts International Stock Performance

Shares of MGM traded up $6.83 during midday trading on Monday, hitting $50.50. 14,945,051 shares of the stock traded hands, compared to its average volume of 5,019,534. MGM Resorts International has a 1-year low of $29.18 and a 1-year high of $51.18. The firm has a market capitalization of $12.92 billion, a PE ratio of 70.08 and a beta of 1.31. The company has a debt-to-equity ratio of 1.93, a quick ratio of 1.30 and a current ratio of 1.33. The business's 50 day moving average price is $38.01 and its two-hundred day moving average price is $36.27.

MGM Resorts International (NYSE:MGM - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $0.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.56 by ($0.07). The firm had revenue of $4.45 billion for the quarter, compared to analyst estimates of $4.37 billion. MGM Resorts International had a net margin of 1.03% and a return on equity of 24.43%. The business's revenue was up 4.2% compared to the same quarter last year. During the same period last year, the firm posted $0.69 EPS. Equities research analysts predict that MGM Resorts International will post 1.99 EPS for the current fiscal year.

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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