MGM Resorts International (NYSE:MGM) Shares Gap Up Following Strong Earnings

MGM Resorts International (NYSE:MGM)’s share price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $39.75, but opened at $43.50. MGM Resorts International shares last traded at $41.26, with a volume of 1,681,080 shares traded.

The company reported $0.74 EPS for the quarter, topping analysts’ consensus estimates of $0.56 by $0.18. MGM Resorts International had a return on equity of 22.97% and a net margin of 5.35%. The company had revenue of $4.38 billion for the quarter, compared to analysts’ expectations of $4.24 billion. During the same quarter last year, the business earned $0.44 earnings per share. MGM Resorts International’s revenue was up 13.2% on a year-over-year basis.

Analysts Set New Price Targets

MGM has been the subject of a number of recent analyst reports. Bank Of America (Bofa) upped their price target on shares of MGM Resorts International from $45.00 to $50.00 and gave the stock a “neutral” rating in a report on Wednesday, February 14th. Susquehanna raised MGM Resorts International from a “neutral” rating to a “positive” rating and boosted their price target for the stock from $46.00 to $54.00 in a report on Thursday. Deutsche Bank Aktiengesellschaft boosted their target price on MGM Resorts International from $50.00 to $52.00 and gave the stock a “buy” rating in a research note on Wednesday, February 14th. Macquarie reaffirmed an “outperform” rating and set a $58.00 price target on shares of MGM Resorts International in a report on Wednesday, February 14th. Finally, JMP Securities reiterated a “market outperform” rating and set a $57.00 price objective on shares of MGM Resorts International in a research report on Wednesday, February 14th. Two analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $54.77.

Insider Activity at MGM Resorts International

In other news, Director Keith A. Meister sold 325,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 12th. The shares were sold at an average price of $42.90, for a total value of $13,942,500.00. Following the transaction, the director now owns 6,098,778 shares in the company, valued at approximately $261,637,576.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.13% of the stock is currently owned by company insiders.

Institutional Trading of MGM Resorts International

Several hedge funds have recently modified their holdings of MGM. Fjarde AP Fonden Fourth Swedish National Pension Fund increased its holdings in shares of MGM Resorts International by 28.7% during the third quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 91,456 shares of the company’s stock valued at $3,362,000 after acquiring an additional 20,400 shares in the last quarter. Raymond James & Associates lifted its stake in shares of MGM Resorts International by 60.8% in the third quarter. Raymond James & Associates now owns 322,520 shares of the company’s stock valued at $11,856,000 after buying an additional 121,947 shares in the last quarter. Stratos Wealth Partners LTD. grew its holdings in shares of MGM Resorts International by 42.9% during the third quarter. Stratos Wealth Partners LTD. now owns 27,461 shares of the company’s stock valued at $1,009,000 after buying an additional 8,244 shares during the last quarter. Independent Advisor Alliance increased its position in shares of MGM Resorts International by 9.4% during the third quarter. Independent Advisor Alliance now owns 15,653 shares of the company’s stock worth $575,000 after acquiring an additional 1,349 shares in the last quarter. Finally, Brown Advisory Inc. raised its holdings in shares of MGM Resorts International by 1.3% in the 3rd quarter. Brown Advisory Inc. now owns 23,233 shares of the company’s stock worth $854,000 after acquiring an additional 309 shares during the last quarter. Institutional investors own 68.11% of the company’s stock.

MGM Resorts International Stock Performance

The firm has a market cap of $13.01 billion, a P/E ratio of 15.72, a PEG ratio of 1.63 and a beta of 2.22. The company has a current ratio of 1.57, a quick ratio of 1.53 and a debt-to-equity ratio of 1.46. The company’s 50-day moving average is $43.55 and its two-hundred day moving average is $42.21.

MGM Resorts International Company Profile

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.