UBS Group Forecasts Strong Price Appreciation for MGM Resorts International (NYSE:MGM) Stock

Key Points

• UBS Group raised its price target on MGM Resorts International from $39 to $50 while keeping a neutral rating, implying modest upside from the previous close.
• Analyst sentiment remains mixed: the stock’s consensus rating is Hold, with a consensus target price of $49.76, as other firms have recently upgraded, downgraded, or adjusted targets in different directions.
• Takeover speculation is a major theme, with reports that People Inc. proposed an $18 billion buyout offer at $48.30 per share, even as legal and deal-risk concerns have emerged around the potential go-private transaction.

MGM Resorts International (NYSE:MGM - Get Free Report) had its price objective upped by research analysts at UBS Group from $39.00 to $50.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has a "neutral" rating on the stock. UBS Group's target price would indicate a potential upside of 3.07% from the company's previous close.

Several other research firms have also recently weighed in on MGM. Weiss Ratings upgraded MGM Resorts International from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, May 15th. Mizuho lowered their target price on MGM Resorts International from $62.00 to $59.00 and set an "outperform" rating for the company in a research report on Monday, April 27th. Jefferies Financial Group lowered shares of MGM Resorts International from a "buy" rating to a "hold" rating and cut their target price for the company from $50.00 to $44.00 in a report on Friday, May 1st. Morgan Stanley restated an "underweight" rating on shares of MGM Resorts International in a research report on Monday. Finally, The Goldman Sachs Group increased their price objective on shares of MGM Resorts International from $34.00 to $38.00 and gave the company a "sell" rating in a research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $49.76.

MGM Resorts International Stock Performance

Shares of MGM opened at $48.51 on Thursday. The business has a 50-day simple moving average of $38.77 and a two-hundred day simple moving average of $36.61. The company has a quick ratio of 1.30, a current ratio of 1.33 and a debt-to-equity ratio of 1.93. MGM Resorts International has a 52 week low of $29.18 and a 52 week high of $51.59. The stock has a market cap of $12.41 billion, a price-to-earnings ratio of 67.58 and a beta of 1.31.

MGM Resorts International (NYSE:MGM - Get Free Report) last released its 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). MGM Resorts International had a return on equity of 24.43% and a net margin of 1.03%.The firm had revenue of $4.45 billion during the quarter, compared to analysts' expectations of $4.37 billion. During the same period in the prior year, the company posted $0.69 earnings per share. The company's revenue was up 4.2% compared to the same quarter last year. On average, analysts expect that MGM Resorts International will post 2 EPS for the current year.

Insider Activity at MGM Resorts International

In other MGM Resorts International news, Director Daniel J. Taylor sold 6,675 shares of MGM Resorts International stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $38.44, for a total transaction of $256,587.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Keith A. Meister sold 37,500 shares of the stock in a transaction 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 completion of the sale, the director directly owned 5,347,978 shares in the company, valued at approximately $183,275,206.06. This represents a 0.70% decrease in their position. The SEC filing for this sale provides additional information. 3.38% of the stock is currently owned by insiders.

Hedge Funds Weigh In On MGM Resorts International

A number of large investors have recently made changes to their positions in the company. Parallel Advisors LLC grew its holdings in MGM Resorts International by 12.4% during the 1st quarter. Parallel Advisors LLC now owns 9,969 shares of the company's stock valued at $369,000 after purchasing an additional 1,102 shares during the last quarter. Optiver Holding B.V. bought a new stake in MGM Resorts International in the first quarter worth about $35,000. Glenmede Trust Co. NA lifted its stake in MGM Resorts International by 122.1% in the first quarter. Glenmede Trust Co. NA now owns 12,690 shares of the company's stock worth $470,000 after purchasing an additional 6,976 shares during the last quarter. Janus Henderson Group PLC boosted its position in shares of MGM Resorts International by 8.3% during the first quarter. Janus Henderson Group PLC now owns 96,100 shares of the company's stock valued at $3,556,000 after buying an additional 7,334 shares during the period. Finally, Bull Harbor Capital LLC purchased a new position in shares of MGM Resorts International during the first quarter valued at approximately $371,000. 68.11% of the stock is owned by hedge funds and other institutional investors.

MGM Resorts International News Summary

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

• Positive Sentiment: People Inc. proposed an $18 billion acquisition of MGM Resorts, offering $48.30 per share in cash and fueling takeover speculation around the casino operator. Barry Diller's People Makes Move To Take Casino Giant MGM Private
• Positive Sentiment: Deutsche Bank raised its price target on MGM to $55 from $48 and kept a buy rating, signaling confidence in additional upside from current levels. MarketScreener
• Positive Sentiment: Market coverage highlighted MGM as one of the gaming stocks worth watching, citing improving online betting demand and strong Macau gaming trends. 4 Gaming Stocks Worth Watching Despite Industry Headwinds
• Neutral Sentiment: Several articles framed MGM as a top hotel, casino, and entertainment stock to watch, but these were broad industry roundups rather than company-specific catalysts. Top Hotel Stocks Worth Watching - June 1st
• Neutral Sentiment: Option activity picked up, with traders buying a high volume of MGM call options, suggesting rising speculative interest. Traders Buy High Volume of MGM Resorts International Call Options NYSE: MGM
• Negative Sentiment: Johnson Fistel launched an investigation into possible board fiduciary duty issues tied to the go-private proposal, adding legal and deal-risk uncertainty. Johnson Fistel Investigates Potential Board Fiduciary Duty Breaches at MGM Resorts International in Connection with Potential Go-Private Transaction

About MGM Resorts International

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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